Note from the CEO: Wake up banks. You may have heard there is a fintech revolution out there. So, the ACH is going to get upgraded….AFTER 40 years. Which means money sent through the ACH system can clear the same day. It’s in your account when you expect it. See American Express, it was not my fault I missed a payment.
“It’s Friday, and your paycheck is missing a zero. Even if payroll owns up to it, you could be waiting until Wednesday to get your money. Your power company is threatening a penalty for an overdue balance? Don’t expect your last-minute payment to get there in time. Waiting for the market to drop before buying stock? By the time the money gets to your mutual fund, it will probably have recovered.
Americans are used to getting what they want when they want it. Their money, though, usually takes its time. If you want to move cash from one bank to another, your quickest option even in 2016 may be to withdraw it and walk across the street. This glitch in our otherwise lightning-fast financial system is an antiquated network known as the Automated Clearing House, or ACH. More than $41 trillion per year moves reliably and cheaply—but slowly—over this platform, first built in the 1970s. One big reason for the lag is that banks synchronize their accounts with the network only once a day.”