This story was delivered to BI Intelligence " Payments Briefing " subscribers. To learn more and subscribe, please click here .
U.S. alternative payments provider Dwolla submitted a proposal to the Fed’s Faster Payments Task Force, a group tasked with addressing and improving U.S. payment systems to meet the Electronic Payment Association’s (NACHA) September deadline for same-day settlement.
Dwolla’s plan proposes the expansion of the firm’s existing FiSync platform, which has been used by financial firms since 2012 for real-time bank transfers.
The U.S. is striving to improve its settlement speed, which could help consumers and businesses manage their cash flow and finances more effectively. If Dwolla’s proposal is chosen, it’s plausible its product could be integrated across banks throughout the U.S., which could give it widespread visibility and new streams of revenue.
This marriage of finance and technology to improve payment processing speed is further proof that we’ve entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs.
No firm is immune from the coming disruption and every company must have a strategy to harness the powerful advantages of the new fintech revolution.
The battle already underway will create surprising winners and stunned losers among some of the most powerful names in the financial world: The most contentious conflicts (and partnerships) will be between startups that are completely reengineering decades-old practices, traditional power players who are furiously trying to adapt with their own innovations, and total disruption of established technology & processes: Traditional Retail Banks vs. Online-Only Banks: Traditional retail banks provide a valuable service, but online-only banks can offer many of the same services with higher rates and lower fees
Traditional Lenders vs. Peer-to-Peer Marketplaces : P2P lending marketplaces are growing much faster than traditional lenders—only time will […]
