SibosEye-Opener: Why Can't a Payment be More Like a FedEx?

I do wonder whether there won't be the same competitive pressures that Fedex faces - speed.

Speed can alter risk  - lower risk too, if the the right methods are in place.

I do wonder whether the analogy doesn't imply payments are taking so long to 'arrive' that they need to be tracked.

I do think a more interactive and instant approach might be something to look out for.

I would like to congratulate BofA on getting Sallie Krawchek onto the team.  I had her at the top of my list. And congratulations Sallie but I can't say I'm surprised one little bit.

George

Thats an interesting analogy and one I've heard before. There's a fundamental difference with a payment at Bank of America and the Fedex parcel -  the parcel never leaves Fedex's control therefore it's very easy to see where the parcel is.

The Bank of America solution gives a snapshot of the payment whilst in Bof A's system, it doesn't, and can't, give a picture of a payment outside its control.

(PS My companies system does give timelines and status even though the payment is in a counterparty system).

Regards

the really sad thing is, Heidi Miller of JPMorgan Chase used that exact analogy already in her opening remarks of Sibos 2004 (!) and substantially nothing has changed at all since then. Especially cross border payments are still a black box for beneficiary and ordering customer. A single institution solution will not change the game.....

I am not sure if I understand what the benefit of tracking a payment could be. Generally a payment should be completed within two days of its origination. I still have a problem with this two day gap, but that is another story. I certainly can see the benefit to the bank offering this as a value added service, but to the user? Sorry, I just can’t see it.