Second Act Capital Partners
Historically, smaller banks have been minor players in servicing commercial customers with international payments needs, which required larger bank expertise in and access to international payment systems and currency trading. The result has been a lost opportunity for the smaller banks, and unduly expensive payment processing for their customers due to large and non-transparent FX "markups" imposed by the larger bank handling the payments. At best, the small bank may earn a revenue "split" of an expensive markup that is borne by the bank's customer, and miss the opportunity to provide the cost-effective customer service that is a smaller bank's hallmark. At worst, the smaller bank must introduce their customer to a larger bank to handle the payments, earning a meager wire fee while bearing all the compliance risk and relationship risk with their customer. Emerging Financial Technology around cross-border payments changes that equation, providing smaller banks with the opportunity to fully service commercial customers with international payment needs, offer those customers much better pricing on foreign currency payments than they have historically received, earn fee income and grow DDA deposits.
Basic exploration of the operational and compliance requirements for handling cross-border payments for commercial and retail customer
382 SPRINGFIELD AVE – SUITE 217
SUMMIT, NJ 07901
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This webinar explores how banks can grow their commercial DDA customer base and generate new fee income on both existing and new international wires ("cross-border payments").