International trade flows are growing at twice the rate of global GDP [McKinsey], so it’s no surprise that cross-border payments revenues are following suit – being expected to grow 7% annually over the next decade. Although this provides important growth opportunities, cross-border payments are also increasingly viewed as a necessary part of a bank’s services.
To capture a share of this growing market at the expense of their competition banks need to:
- Offer their customers efficient and well-targeted services
- Take full advantage of traditional settlement networks as well as newer cross-border, low-value schemes.
The rub, of course, is that existing systems for managing cross-border payments are woefully ill-equipped to deliver this capability given that :
- Low straight-through-processing rates are the norm
- Labor-intensive manual workflows keep costs high
- Providing customers with accurate and timely updates on payment status is a challenge.
Dovetail’s Cross-Border Payments Solutions provides the answer by:
- Providing a single platform – processing cross-border payments of all kinds, across all countries and currencies
- Being channel agnostic – handling qualification and routing of cross-border transactions regardless of origination channel or format.
By taking advantage of the solutions’ quality and repair and sophisticated routing capabilities, combined with the centralized reference data, banks can increase their straight-through-processing rates and cut down on manual operator intervention, thus improving margins and customer satisfaction.
The solutions feature a set of core functions common to all banks needing to support cross-border payments, with Dovetail Cross-border Payment Solutions Options for specific business needs, such as real-time foreign exchange, or the provision of agency services. The modular design also ensures that the solution can be easily integrated with a bank’s existing systems, reducing implementation effort and accelerating time to market.
In common with all Dovetail solutions, the Cross-Border Payment Solutions are based on the Dovetail Transaction Architecture.