Powered by MOMENTUM MEDIA

NPP to benefit super members: CBA

By Reporter
 — 1 minute read

Near-instantaneous payments (NPPs) under the recently launched New Payments Platform will cut down the lag in employer superannuation payments, potentially saving members millions, according to the Commonwealth Bank of Australia (CBA).

A new report from CBA and KPMG has analysed the extent to which the near-instant New Payments Platform will contribute to Australians' superannuation balances.

At present, when it comes to employer superannuation payments, there is a lag of one to three days between initiation and completion, said the report.

Advertisement
Advertisement

CBA cash-flow and transaction services executive general manager Michael Eidel said the NPP could mean "millions of dollars a year" in savings for super members.

Assuming investment returns of 3 per cent, the switch to real-time payments from the average two-day lag could save members $19.2 million annually, according to the report.

"This is above and beyond the savings available for members through greater administrative efficiency for all stakeholders in the system including funds and employers," Mr Eidel said.

"The NPP infrastructure is here, and businesses need to engage with the ecosystem, collaborate and co-design to deliver on the things [that] make a better experience for the super fund member," he said.

 

The ifa Excellence Awards are back in 2021 and nominations are now open!

This prestigious accolade recognises exceptional professionals within the financial advice industry, shining a light on the outstanding achievements from the nation's best and brightest. If this sounds like you or someone you know, then nominate today for the ifa Excellence Awards 2021! ifa.com.au/excellence-awards

 

NPP to benefit super members: CBA
Near-instantaneous payments
ID logo

 

related articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.