Correspondent Banking System Is Fast Giving Way

Earthport Payment Network, now in India, enables low value cross border payments without the outdated correspondent banking model.

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Are the days of the conventional correspondent banking numbered? It seems possible - at least for low value cross border payments which largely impact the retail customers and small medium sized enterprises engaged in overseas trade. More and more global banks are now migrating to a technology platform created by UK payments services provider Earthport Payment Network that ensures cross border remittances in an efficient, quicker, seamless and cost effective manner without the need for multiple intermediary banks. Earthport has just entered India after the Reserve Bank of India gave it approval to operate in the country; and it has acquired Axis Bank as its first customer.

“We at Earthport manage payments globally in a seamless manner,” says Sajeev Viswanathan, president, Global Strategy at Earthport Payment Network. “A bank or a financial services institution does not need to have multiple relationships with correspondent banks to undertake cross border payments. We enable the financial services sector entities to send and receive cross border payments in more than 60 countries - with total transparency, world class compliance, optimal pricing, efficiency and speed. Our clients have access to arguably, the world’s largest Automated Clearing House (ACH) network. We offer them a suite of settlement options, seamlessly enabling access to the benefits of evolving technologies, including futuristic developments such as blockchain and distributed ledgers – all this via a single connection to Earthport’s Payment Network,” he adds.

Today, Earthport boasts of top global banks and financial institutions as its clients, including Bank of America Merrill Lynch, Western Union, Banco Santander, Standard Chartered, HSBC and Japan Post Bank.

INDIAN ENTRY