Why dont banks process things on Saturdays/Sundays?

EarthBoy

I'm sure that if banking was a new idea and the systems were being designed from scratch they would incorporate 7 day settlement. But banking isn't new and the systems are mostly very old. Adapting them to clear cheques 7 days a week would be too expensive and would benefit too few people to make any changes worthwhile.

Although the banks backtracked on the idea of abolishing cheques, the number issued is continuing to dwindle and they will very likely become extinct in a few years because people will have simply stopped using them. It would be madness if any money was spent "improving" a system which is on its way out.

Hominu

Wyndham wrote: »

To go back to a banking example, cash machines work 24/7/365, and can you imagine the outcry if they didn't?

That's certainly not my experience. They are certainly open longer hours than banks, but they are not open 24/7/365.

Taking last year as an example, the ATMs around where I live were unavailable for upto days at a time due to bank problems (think Natwest to start with), messages such as "Currently Out of Service", "This machine cannot serve you at the moment", "There is a fault" and "No cash available at this ATM" displayed on the screen. The "Currently Out of Service" message seems to occur at random periods throughout a normal day, often clearing back to normal within a few minutes.

If you think back to 1967 when banks started installing them they wanted people to use them instead of going inside the bank, and being open when the bank wasn't was a major point. Now compare this to cheques which were developed in the 1800's and worked by posting the cheque to the bank which issued it (and seems to still be the case today).

What you are suggesting is that bank redesign the cheque system to process cheques 7 days a week, but what the banks want to do is abolish cheques altogether. A middle ground is to simply keep them on the existing system.

Southend1

I would rather the staff at my bank had the weekend free to spend with their loved ones than going to work to satisfy the whims of people who are too greedy and impatient to wait an extra few hours for something.

jonesMUFCforever

The last time I sold shares I was given the option of setting up a direct debit and/or debit card to accept the monies into my account.

Gromitt

Southend1 wrote: »

I would rather the staff at my bank had the weekend free to spend with their loved ones than going to work to satisfy the whims of people who are too greedy and impatient to wait an extra few hours for something.

Are not most banks open on Saturday anyway? So the only time they are really shut is Sunday and bank holidays, but even then, phone banking is open.

By like said already, the rules for cheques, etc will still be a factor even if the bank itself was open 24/7. Its not like they need staff to manually do the DDs and SOs.

JuicyJesus

We get these threads periodically:

1) Someone says they've paid in a cheque and they can't understand why it doesn't clear quicker
2) This is explained to them, with reference to cheques being an outdated system that involves physical pieces of paper being moved around, that there's other better systems available now and there being no great demand that justifies the outlay
3) They come back with "no but it uses computers so why can't they clear quicker"
4) GOTO 2

Wyndham

opinions4u wrote: »

It is a few years since I was accountable for ATM availability.

But when I was they were unavailable for 15 minutes every night without fail.

They also needed servicing on a daily basis too, which took around 10 minutes.

Not to mention loading cash which took longer.

So no ATM I ever worked with was open 24 hours a day.

OK, thanks I get that. But, I can get money out of an ATM on a Saturday or a Sunday, but my direct debits don't go on those dates, and my salary isn't paid if payday happens to fall on a Saturday or Sunday. In both cases, an alternative date is used, but surely that system in itself must cause extra work. Unless, of course, it's all automated after all, so Saturday and Sunday would be possible?

Please do let me know if I've missed something - I'm genuinely interested to know why these things aren't possible in this day an age?

EarthBoy

Wyndham wrote: »

Please do let me know if I've missed something - I'm genuinely interested to know why these things aren't possible in this day an age?

Please read the answers given above where it's been explained perfectly clearly for you.

Archi_Bald

What many of the "modernisers" seem to forget is that there are tens of thousands of companies whose payroll and other systems are in tune with the banking systems. Thus any fundamental change by banks would have an avalanche effect on businesses, for no easily apparent benefit to these businesses.

Also, none of the people asking for the 24x7 service has yet offered either of

1. a concise description of the problem(s) with the current arrangements
2. an indication of the benefits, and to whom, if their requirements were implemented
3. the precise nature of their requirements

Gromitt

Wyndham wrote: »

my salary isn't paid if payday happens to fall on a Saturday or Sunday

Where I work, you get paid earlier if the date would have been a Saturday or Sunday, which seems to make people happy. Like we are supposed to be paid on Christmas day this month but we are going to be paid tomorrow instead

Wyndham wrote: »

but surely that system in itself must cause extra work. Unless, of course, it's all automated after all, so Saturday and Sunday would be possible?

What do you mean by "extra work?"

Yes it's possible to change it, but you would need to do a full investigation into what would happen if you did change it, and what would be the effect on businesses, etc, so could costs millions. Much easier to not bother.

If a DD isn't taken due to a weekend, it's normally taken on the Monday. This I've not a problem with as it means I got the money for longer and so get more interest on it before it gets stolen by various companies, so it would actually cost me more money if they took it out over a weekend.