why do banks need an extra day to process paychecks after ‘bank holidays’ when almost everything is automatic/digital?

Question

why do banks need an extra day to process paychecks after ‘bank holidays’ when almost everything is automatic/digital?

In: 3758

Answer 1

Because there are still manual processes involved which must be completed. At the bank I worked for, a file would come in from the FED, and we would put it through filters for security, then we’d post it to the accounts. This is obviously a simplified explanation.