US vs. German cash remittance process
ccohen5 at compuserve.com
Wed May 1 10:04:10 EDT 2002
I have resisted staying out of this discussion, but now I must succumb as I
am in this business and your comments are totally on point.
There are huge vested interests in the US that makes it difficult for banks
to modernize. Firstly we have 3 incompatible bank systems which by law
cannot merge; secondly we have tough privacy laws and a public that is
paranoid about allowing others to have private numbers because the state is
not allowed to enforce a national ID system; and lastly creditor kiting is
an art form that at one time was a social if not criminal offense in
So we stick to outmoded and obsolete systems which BTW also make it easier
for money launderers, druggies and terrorists to use our system anonomysly.
My company is the only, and I really mean the only one in the world that
facilitates a seamless interaction that would permit an electronic interface
between consumers, business and government with their various suppliers
through any bank(s) anywhere. This is not really saleable in the US for the
reasons above (consumers) and most business treasurers are quite complacent
about this aspect of their business and happy to leave pools of liquidity
all over the country to the amusement (and profit) of their banks.
I wont say more but if anyone is interested take a look at www.alterna.com .
I am not on the "sales" side of the business but just repeating what the
'experts' and our customers ( who have seen the light with big savings) have
Its deplorable. Someone has commented on the forum about the Citi C2it
(Alexander I think) which is a step in the right direction. But look at the
cost - $15.00 for a transfer that has zero marginal cost for Citi. In the
EU, the EU commissioners have had to rule against the banks for over
charging for foreign Euro transfers that were costing small businesses $100
for something that we can do for about 50c marginal cost assuming an
Seems like an opportunity, but you would be amazed at how indifferent
financial managers are because of their vested interests, pressure from
banks and the lack of performance goals inherent in the business units run
by treasurers and CFOs. they argue about a couple of basis points for weeks
and then leave a ton of money lying around.
Just like fighting the Audi supply system for a good part price and then
having to fit the piece twice because you break it and have to take the car
to the dealer to correct the break and buy the part again, which for me is a
definite BTDT and provides the requisite Audi reference.
Just my 2c as opposed to the US $2 which most have to pay !!!
Its actually funny... you can also just log into your PC here in the US and
your banking online.... BUT my bank still prints the check and sends it to
recipients... pretty uhmm... well... retarded... yeah..
96 Probe GT - not so stock anymore
Quoting Stephen Bigelow <sbigelow at sprint.ca>:
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