why do banks need an extra day to process paychecks after ‘bank holidays’ when almost everything is automatic/digital?
In: 3758
Banks operate on a system that the Fed controls and payments flow through this system to the corresponding bank. Unfortunately, an entire nations payments system can’t just be instantaneously updated. The Fed is currently in the process of piloting a new system in which we won’t have to worry about holidays or weekends, called FedNow.
Like others have said in this thread, governments don’t work quickly, changing a national system is costly, and security risk to financial world is high.
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