Re-inventing correspondent banking
The move towards real-time payments, stricter compliance requirements and open access to bank accounts are some of the market drivers that create a fertile ground for new entrants in the payments market. In recent years, an increasing number of fintech companies have entered the payment market, frequently pitching for the low-value person-to-person payments segment, but increasingly going up the value chain and offering alternative payments models to traditional correspondent banking at every level. Have we reached a tipping point where we need to fundamentally rethink the correspondent banking model? How can banks keep their position as a secured and reliable payments channel while answering clients’ needs and fostering innovation?