Banks are facing challenges to make profits in today’s environment where technology development costs and interest rates are rising. These increasing operating costs are impacting the profitability of banks and financial services. So, every bank/financial institution is trying to reduce costs. One way to do this is by changing from proprietary tools-driven software development to open-source technology and automation, which eliminates licensing fees.
Using open-source technology is a good idea when dealing with Automated Clearing House (ACH) batch processing, the primary system that agencies use for electronic funds transfer (EFT). Because the structure of an ACH file is very rarely modified by the Federal Reserve, once the technology is developed, very little maintenance is required. With open-source software handling of ACH files, companies can save hundreds of thousands of dollars.