How We Support Financial Institutions

Posted Under: News

Community banks and credit unions are often held hostage by the mainstream core providers when it comes to adding new products and services – especially FX payments.

These tech companies often demand additional fees, i.e. a share of the revenue, when looking to implement FX rates directly into the core and because the revenue is generally not significant for them there’s limited appetite to implement in a timely manner.

We decided to investigate what we could do to help financial institutions who currently do not offer foreign exchange payments to their business clients.

But first, for the entities who do have an FX offering it’s most likely not as a proprietary service and consequently the exchange rates are provided by a correspondent bank. Even with the best negotiation the margin is likely in the region of 160-200bps which is then widened further when the bank/CU adds their margin, for profit.

If you’re one of the institutions using a correspondent you’ve likely lost clients because of not being able to provide the FX rate they want. Despite not wanting to this results in your client using the correspondent, or one of their/your competitors, directly who will then insist on your client moving all of their business in order to meet their minimum revenue hurdle. In most cases we bet you don’t even know the client has moved.

We’ve met many institutions, however, who are aware of losing revenue, deposits, and loan income and as a result are looking to partner with GreenShootsFX on a referral basis. That is to say whenever they are faced with not being able to support the client’s FX need they will refer the client to us, safe in the knowledge we’ll handle them with white gloves and we will not demand other ancillary business.

When the client is logged on to your digital banking platform we can support a Single Sign-On (“SSO”) functionality such that the client can migrate to GSFX Online with a single click.

The result is a happy client, and a happy bank especially because we share the FX income.

Now, if you do not offer any kind of FX payment capability then we might have something a little extra special for you.

We have the ability to offer a pseudo white-label platform branded with your logo that either your institution or GreenShootsFX can administer. Through the SSO capability clients will be directed to our platform, but it would bear your logo.

The SSO implementation will require some input from your core, or maybe your digital platform provider, but it should not be as costly or burdensome as a fully fledged FX integration with a correspondent bank.

Either your institution can handle all or some of the back office, onboarding, and client service arrangements, or we can.

Take a moment to learn how we can partner with you to help you retain existing clients, encourage you to proactively attract larger clients, and share in a new FX revenue stream.