I have recently switched all of my banking over to Monzo. This was a manual process due to the account being a joint account. One thing I noticed in all of this is just how archaic Direct Debits are. It amazes me that the switch can take three to five days and feels very dated. I’d be interested to know if there is any plans in the industry to speed this up i.e. you go to a companies website and change the Direct Debit details and the switch happens instantly. It also frustrated me that if a Direct Debit was about to happen you had to wait sometimes a week before you can change it, even though the money had not come out.
Direct Debits also seem very insecure. People share bank details all the time to send money, so what is stopping someone using this information to take direct debits from people’s accounts without permission?
I’d be amazed that there isn’t a new standard on the horizon that works with open banking that links everything together securely and instantly.