Coming September 2016, speedier bank transfers will begin to become a reality. To understand the potential impacts of this new development in the ACH network, we’ll look at how different parties stand to benefit from the implementation of same-day bank transfers.
In this post, we’ll focus on the benefits to consumers—those of us paying utility bills and managing our finances. To catch you up, we’ve done a deep dive into understanding the ACH network and Same-Day ACH.
Fast, affordable emergency payments. In the instance of an emergency, a reliable, fast, and affordable way to receive funds can help put people’s lives back on track. For example, consider natural disasters. Here, insurers, governments, and nonprofits need a cost-effective way to deliver funds to victims, first responders, and more.
Pay bills, like landlords or utility companies, in the last minute. Sometimes we forget to make a payment, sometimes we just don’t have the cash yet to make the payment a few days ahead of the due date. Late payments can be costly, even locking some consumers in vicious cycles of debt. Same-Day ACH provide consumers greater control and options when it comes to managing their bank account balances (or forgetfulness), helping them make payments on time.
Take action quicker and cheaper. Legacy stock trading platforms, real estate deals, and wealth management firms are known for using wire to instantly move millions between institutions, but now that action has come to the consumer. Today, an onslaught of internet-connected devices, real-time APIs, and fintech platforms help consumers enjoy the same tools and advantages for managing personal wealth.
These platforms have also highlighted the need for faster, more accessible, and lower volume bank transfers. Imagine the additional value that could be unlocked by crowdfunding platforms like WeFinance, real estate investment platforms like EQUITYMULTIPLE, and smart saving apps like EarnSmart. Imagine the value if they were to have access to affordable and faster real-time payments.
At Dwolla, we think the true value found in faster payments is not speed, but rather the value provided to businesses and consumers. As providers of the nation’s most dynamic on-ramp to the ACH network, our flexible API, infrastructure, and expertise in bank transfers offer a robust platform.
If you’re interested in Same-Day ACH (or standard ACH) we’d like to hear from you.
Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in our network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.