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As someone who has sadly spent many hours of my life with my nose in the ACH regulations and trying to wrap my head around ACH ops I can confirm that the entire
by elliekelly 7y ago
As someone who has sadly spent many hours of my life with my nose in the ACH regulations and trying to wrap my head around ACH ops I can confirm that the entire system makes zero sense for the modern world. Unfortunately, the system we’ve built up is so unbelievably & needlessly complex from both a legal perspective and a technology perspective that it’s hard for anyone to even make progress on the important stuff - like basic security. But the system is so interconnected and important that even “disruptive” new fintech companies are forced to find a way to get their tech to work with the ACH network rather than the ACH network figuring out how to modernize.
- toomuchtodo 7y agoI have spoken with responsible parties at the Federal Reserve about the modernization process, and while they take it seriously (Powell was harassed about it during congressional testimony about Libra when Zelle was brought up), one must understand the momentum and inertia of systems of this scale. These are not "startupy" scale problems. Financial plumbing is boring and stakeholder, not technology, driven. As it should be: as a stakeholder, you shouldn't care what the underlying is (there are no tracks for a hype train here; these are systems that must run reliably for decades), all you should care is your money gets to you fast, the person who sent it can be assured it'll get there fast, and that the system is secure and cost efficient.