Looking at how grossly inefficient the disbursement of stimulus money has been, what's your perspective on what is wrong with financial network banking and overall “fintech” today?

My experience is, banks don't want to move fast because they make money on the delay of carrying the float. There's no reason why FX conversion and settlements has to be a batch process. And I feel people just accept that for what it is versus pushing on that and narratives like this. Given your experience do you agree that we need to move to a continuous delivery model of financial transactions versus the batch model.

Anonymous Author
My experience is, banks don't want to move fast because they make money on the delay of carrying the float. There's no reason why FX conversion and settlements has to be a batch process. And I feel people just accept that for what it is versus pushing on that and narratives like this. Given your experience do you agree that we need to move to a continuous delivery model of financial transactions versus the batch model.
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Anonymous Author
Things are changing. They're not changing fast enough though. Banks will have to adapt and move fast or at least come to be at par. But they do not really have a whole lot of incentive yet because they are more focused on losing the fees and different kinds of things that will happen. So, for example, if you think about the batch processing and how it's actually traditionally being done, when you look at the Venmos of the world and the Zelles of the world, they are pretty much instantaneous in terms of sending the money and the other person actually getting it. Now, there are two parts to it. I think part one is the macro level understanding for common folks. People don't worry about: Is it a batch process? Is it an ACH? They just want to know if it's a debit card transaction or a credit card transaction, and if they will have their money in two to three days. I'll give you an example from the 401k world. When a person needs to roll over, whether they take their money to a different 401k, it's just a pure rollover, or they're taking it to an IRA, it could take 4-5 business days for the money to actually come out from one account, show up to the person and then be deposited into their accounts. So, who's bearing the actual cost of that money being out of the market. It's actually the end user who's dealing with all of that. If we talk about the ACH network and all that stuff, the bottom line is the banks are holding that money for their own purposes. As we move forward, why are some of these companies able to do that? I don't have much, if any experience with the international stuff, but I can focus a lot more on just what's going on in the US. There's absolutely a desire to move and reduce the time that it takes to get the money in the bank accounts. But we're talking about an incentivization. Some of the policies have been here since the 1970s haven't been upgraded to the modern times. More importantly, the processing power that earlier determined why some of these policies were in place has changed. The regulations and the regulatory environment hasn't changed for those policies to actually be looked at more comprehensively and be brought into consideration for changes.
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