Earthport is speeding up payments not by wowing with new tech, but by using old rails, solid research and a global presence.
Faster, cheaper, transparent. These words are music to any treasurer's ears and a goal for departments where doing more with less is the mandate. Unfortunately, this is a challenge to achieve when it comes to cross-border payments. Despite the emergence of new technologies and promise of initiatives like the Federal Reserve’s Faster Payments Task Force, getting to that sweet spot has been tough. In cross-border payments there are a lot of moving parts that even blockchain and other innovative technologies may be challenged to overcome.
Under current structures, corporate treasurers must navigate a byzantine network of platforms and messaging systems to get payments from one point to another. This means they can wait a day or more for debits or credits to appear in their corporate bank accounts. The current set-up is also prone to error, inefficient, expensive and very often unpredictable. What’s more, it’s not very transparent and one of the reasons why payments in the US take so much longer to settle versus just about every other developed economy -- and some developing ones, too.
But payments company Earthport, using old rails of ACH augmented by regulatory knowledge and a global reach, has been able to smooth out and speed up payments. Learn more about it here.
Meanwhile, banks are learning that getting too fancy when it comes to cash management platforms actually works against them in the long run. According to an Aite study, cash management systems that have been overly customized by banks cannot be as easily upgraded. As a result, they fall behind.
Lately banks have been trying to rectify things and Aite says 86% of corporate banks are upgrading to new systems. Read more here.
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