No, that’s not an oxymoron. The big, 46-year-old network, with links to virtually every bank in the country, is on a growth tear. Here’s why.
One of the biggest untold stories in the payments industry lies ready to hand for anyone who wants to check the numbers. It’s about a network growing at a steady annual rate exceeding 7%.
At first glance, that may not seem remarkable. But the network is the automated clearing house, and with links to just about every financial institution in the country, it’s huge. It’s also old, founded in 1974, before the Internet, before mobile phones, and back when paper checks ruled supreme.
Big, sprawling networks with roots in old technology don’t typically enjoy accelerating growth. But these days the stars are lining up for the ACH.
Today, checks are in decline, and the ACH is, relatively speaking, on a tear. Factors like the Web, the gig economy, slicker bill payments, and mobile person-to-person transfers are taking off, and what many don’t see is that it’s often the ACH operating the machinery behind the curtain.