BOSTON - A new report from Aite Group, "Converging Wire Transfer and Automated Clearing House (ACH) to Revolutionize U.S. Electronic Wholesale Payments," advocates replacing existing ACH and wire-transfer systems with a single electronic-wholesale payment system.
According to Aite, joining the wire-transfer and ACH systems will provide optimum payments capabilities and services, significant cost savings and revenue-generating opportunities.
"Financial institutions typically maintain both ACH and wire transfer systems, and in many cases, they maintain multiples of these systems as a result of mergers and acquisitions," said Nancy Atkinson, a senior Aite analyst and author of the report. "Because of this, participants throughout the entire payments industry are incurring meaningful expenses that could be reduced through the adoption of a single electronic-payments system."
While Aite Group is challenging conventional wisdom, it recognizes that evolutionary change may be more realistic than its revolutionary position. Therefore, this report outlines iterative steps and alternatives to improve the current electronic payments environment without eliminating existing systems.
