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.
We are actively working with a third party payment platform, World Currency USA, and their sister company Global Contact Int'l, to build a network of banks that can handle new DDA deposits from local import export companies. This strategy will provide you an introduction to small to mid-sized import export companies doing business in your region looking to bank with a community bank.
382 SPRINGFIELD AVE – SUITE 217
SUMMIT, NJ 07901