Mobile Internet and the Disintermediation in Banking

The coming disintermediation in our financial system--

With Mobile Internet, Money Is Up for Grabs | MIT Technology Review: " . . . . Dwolla is working on a deeper fix to the problem—something Milne calls the company’s “real innovation.” Today, banks transfer money over ACH, an almost 40-year-old system that is run by the U.S. Federal Reserve and one private company. ACH is what makes it possible to deposit paychecks and pay utility bills electronically. The transfers are done in batches, which is why they often take three or four days. Dwolla needs those transfers to go faster. Working with 16 institutions, mostly corn-belt credit unions, the company has deployed software it calls FiSync that it says will let ACH transfers go through nearly instantly using Web-based software. Recently, Milne has been pitching the idea to bigger banks as well. “If you get the banks, you become an unavoidable part of the stack. You become the Internet connection,” he says."

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