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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy is our banking system so far behind?
Apparently banks care more about profits than customer service. Who knew?
http://www.marketplace.org/topics/world/why-our-banking-system-so-far-behind
"Today, U.S. consumers cant make a near-real-time payment in a convenient and cost effective way from any bank account to any other bank account," the Feds 13-page paper noted. "In a world where several other countries are moving to ubiquitous near-real-time retail payment systems, the U.S. payment system does not have this capability."
But the Fed, which historically has been wary of imposing mandates on banks, is trying not to come off as heavy-handed. And that cautious approach may make it harder to bring about change in the banking industry.
...
The holy grail of person-to-person payments is the ability to send money instantaneously to anyone elses mobile phone number. In Sweden, thats been reality for over a year now, since the rollout of a system known as "Swish." The upgrades have brought Swedish consumers a lot of benefits, according to Lars Gunnstam, who heads the consortium of banks that runs Swish.
You can split a dinner bill while youre still sitting in the restaurant. Or make a last-minute payment to your utility company. A food truck owner, who would otherwise waste a lot of time handling cash, can instead get paid via mobile phone. "He can immediately see that he has received the money," explains Gunnstam, an executive at the Swedish bank Nordea. "And you can immediately shake hands and say, Fine, done. That is very important if you do business out in the street."
But the Fed, which historically has been wary of imposing mandates on banks, is trying not to come off as heavy-handed. And that cautious approach may make it harder to bring about change in the banking industry.
...
The holy grail of person-to-person payments is the ability to send money instantaneously to anyone elses mobile phone number. In Sweden, thats been reality for over a year now, since the rollout of a system known as "Swish." The upgrades have brought Swedish consumers a lot of benefits, according to Lars Gunnstam, who heads the consortium of banks that runs Swish.
You can split a dinner bill while youre still sitting in the restaurant. Or make a last-minute payment to your utility company. A food truck owner, who would otherwise waste a lot of time handling cash, can instead get paid via mobile phone. "He can immediately see that he has received the money," explains Gunnstam, an executive at the Swedish bank Nordea. "And you can immediately shake hands and say, Fine, done. That is very important if you do business out in the street."
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Why is our banking system so far behind? (Original Post)
Scuba
Feb 2014
OP
Nay
(12,051 posts)1. Are banks still trying to skim the interest off the 'float'? Is that why?
Banks used to use your deposited money to earn interest for several days before they actually deposited it to your account. They could do that back then because they claimed that at least a few days were needed to process the deposit or verify that a check was good.
Now, of course, it's instantaneous, but they still want their float....
Scuba
(53,475 posts)2. You bet they do.
Boom Sound 416
(4,185 posts)3. Why screw up a good thing