The UK Payment Systems Task Force has recommended a number of changes to improve the governance of the body responsible for Bankers Automated Clearing System (BACS) payments, which allows automatic payments to be made from one bank account to another in the UK.
The task force found that consumers and businesses had little say in the operation and decision-making of BACS Payment Schemes Limited (BPSL), which was a particular concern as BACS faces no direct competition.
The task force’s recommendations are meant to prompt businesses and consumers to look at the BPSL scheme.
Some of the changes include the Affiliates Interest Group (AIG), which will act as a forum to brief larger businesses, government departments and other interested stakeholders on current and forthcoming issues.
Affiliates will be able to raise issues of interest or concern, and a consultation process will ensure that any interested party who is not an affiliate is able to contribute its views on BPSL proposals.
This is meant to create a new, broader objective for BPSL, “to promote efficiency and innovation in payments, responding to user and market needs in an efficient and cost-effective manner,” the recommendation says.
The task force will be monitoring BPSL’s progress against the recommendations and BPSL will report to the task force in twelve months.
“Consumers and businesses using BACS can now have a real voice in the future development of BACS payments,” said Jonathan May, OFT Director of Markets and Policy Initiatives and chairman of the task force.