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I think security, and maybe more so stability are very valid reasons for banks to move slowly on these systems. It may appear archaic from the outside, but the

I think security, and maybe more so stability are very valid reasons for banks to move slowly on these systems. It may appear archaic from the outside, but these systems are pushing $39 trillion dollars a year (22 billion transactions) [1]. I can see why the big banks are hesitant to change things drastically. [1] https://www.nacha.org/ach-network/timeline https://www.nacha.org/ach-network/timeline

mtdewcmu 12y ago
Security would be a good reason to be slow, but I suspect that isn't the reason.
- guan 12y ago
  Banks are conservative, too. Which is generally good, but that in itself is part of the reason why the process is slow, in addition to genuine concerns about security and reliability. In some ways security isn’t such a big deal for financial transactions, because they can be undone. Checks are very insecure. ACH is insecure because you can take money out of anyone’s account with the information at the bottom of the check, but ACH transactions can be reversed for at least 45 days after they are made. You also have to ask “how much?” How long is it reasonable to wait for change? The system for same day ACH has existed for years. Very few banks have opted in. Should the Fed set a deadline and say, everyone has to be on it by 2020? (It’s the nature of such deadlines that they are be extended, but something will eventually happen.)