The cheaper. The faster. The better.
The process works through a set of open APIs that the Des Moines company developed to connect user’s bank accounts.
But, there’s a problem.
The technology requires a network effect — for transfers to take place, enough banks must agree to use FiSync, properly integrate it into their core banking systems and accordingly market the capability to consumers.
The idea of bilateral bank transfers isn’t a new concept, either.
The Federal Reserve offers a same day ACH service that delivers on some of the speed Dwolla is promising with FiSync.
Australia’s central bank also offers a similar technology called the Electronic Funds Transfer at Point of Sale system.
You can read my @AmerBanker story, here.
I also conducted an on-camera interview with Dwolla’s chief executive and co-founder Ben Milne.
In this second @AmerBanker video, I discuss how Dwolla affects entrenched payment players: