The cross-border payments business is an essential part of the banking industry, and it plays a significant role in the global economy. Banks earn revenue from facilitating cross-border transactions, and they provide essential services that enable businesses and individuals to send and receive money across borders.
The importance of the cross-border payments business for banks can be seen in several ways:
Revenue generation: Banks earn revenue from cross-border payments by charging fees for the services they provide. These fees can include transaction fees, currency conversion fees, and other related charges.
Customer retention: Offering cross-border payment services is crucial for banks to retain their customers. If banks do not offer these services, customers may choose to take their business elsewhere, to banks that do.
Market share: Banks that offer cross-border payment services can gain a competitive advantage in the market, as customers are likely to choose banks that provide the services they need.
Compliance requirements: Banks that offer cross-border payment services are subject to various compliance requirements, such as anti-money laundering and anti-terrorism financing regulations. Complying with these requirements can be challenging, but it is essential for banks to maintain their reputation and avoid penalties.
Banks often rely on Fintech to provide international payments SaaS to run their cross-border payments operations. For Example many banks use the services of Fable Fintech's white-label global payments platform to run their remittance business.
Fable Fintech creates customizable international remittance SaaS solutions / white-label money transfer software / open banking APIs / white-label global payments platforms (SaaS/PaaS)/ Forex rate systems for banks and financial institutions. Fable Fintech also provides cross border B2B, DTC remittance solutions for businesses along with Fx rate systems. Learn more about cross-border remittances and international payment technology on Fable Fintech's cross border payments blog