There has been a buzz for a while about same day banking, yet is doesnít seem to quite catch on, why? Letís start with what same day banking is. Letís say you own a store, restaurant or another business where a part of your daily revenue is cash. You want that cash in your bank account as quickly as possible. The sooner it gets into your bank account, the better cash flow and the more interest for you. Same day banking technology moves the money from the safe in your business to the bank account, usually the same day.
In todayís reality, the money is picked up by a company and transported to a cash center. Once there, the cash is counted and credited to your bank account, a procedure that takes a day or two at best. This means that you, the business owner, who got paid by a customer on a Monday wonít see the money on the account until Friday. That doesnít make for great cash flow, does it?
A smarter way of doing this is to credit the money in your safe to the bank account. There are solutions in the market for this. Our Presidio solution is one. All cash is tracked and kept safe until it is picked up by the transport company. The information stored in the software could easily be transferred to stakeholders such as banks and transporters and be credited while still in the safe.
This is not the case today though and the question is why. My bet is interest. By moving money quicker between institutions the opportunity of earnings on interest is diminished for the various stakeholders. So there is a natural inertia in the change process as the stakeholders try to find new ways of recreating the value they lose as the interest disappears.
There is no doubt that same day banking is in the best interest of you, the business owner. And I think itís time to put the pressure on banks and other stakeholders to accommodate their customers Ė you Ė in a more efficient way.
So which bank will be the first to move? Are there any trailblazers out there or is status quo as good as it gets?
Magnus BÄckstrÖm,†Vice President Solution Management
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
http://news.cision.com/cashguard-ab/i/magnus-backstrom,c1479127 Magnus BÄckstrÖm
Most Popular Stories
- Shia LaBeouf Plea Deal, Alcoholism Treatment
- Stop-Start Engines Save Gas, Reduce Emissions
- Ohio State Band Chief Fired After Probe
- Hispanic Leader Goes the Extra Mile
- Ricky Martin Joins 'The Voice ... Mexico'
- Morgan Stanley Ponies Up $275 Million to Settle SEC Charges
- Ukraine Says Russians Firing Across the Border
- Ford Q2 Net Profit up 6 Percent
- Jennifer Lopez, Pitbull to Perform at Fashion Rocks
- U.S. Weighs Refugee Status for Immigrant Kids