A routing number is a unique nine-digit code assigned to financial institutions by the American Bankers Association (ABA). It’s akin to an address for electronic funds transfers, ensuring that money reaches the intended banks. For instance, Wright-Patt Credit Union’s Columbus, Ohio branch has a routing number of 244074969, enabling direct deposits and other transactions to its accounts.
Routing numbers are crucial for seamless financial transactions, preventing delays or errors in fund transfers between banks. They facilitate automated clearing house (ACH) transactions, including direct deposits, bill payments, and electronic check processing. Historically, the routing number system was standardized in the 1910s to streamline the clearing process and make interbank transactions more efficient.
