Community Banking Champions: Damon Magnuski

Insights from the Movers and Shakers of Community Banking

Damon Magnuski is the founder and CEO of Acceleron, which builds cutting-edge software that allows community banks and credit unions to conduct international payment transactions profitably through a foreign exchange (FX) marketplace. 

With an engineering background and extensive experience in financial markets and technology development, Damon brings a unique perspective to the community banking industry. His innovative solutions have positioned Acceleron as a key player in empowering community banks to drive non-interest income in a competitive financial landscape. In this article, Damon shares the inspiration behind Acceleron and his unwavering commitment to supporting community banking.

How did your experience working in your father's factory shape your views on community banking?

I grew up machining parts at my father's factory in Chicago. My dad's factory made small parts like elevator buttons, valves for trumpets, and little screws and fasteners. He could never get a loan from big banks; he had to go to local banks. These community banks sent loan officers to count the machines and look at the parts. It's all about relationships. This experience made me appreciate the importance of community banks in supporting small businesses.

What led you to transition from engineering to foreign exchange?

I started my career as a machinist and then an engineer at GE Nuclear, traveling worldwide to fix reactors. During this time, I noticed some international projects losing money due to foreign exchange rates. My bosses complained about exchange rates affecting project profitability. Later, I joined my friend's options trading firm in Chicago, which exposed me to the financial markets. These experiences, combined with my engineering background, led me to explore the world of foreign exchange.

Why did you launch Acceleron?

The idea for Acceleron began with an experience with my mother-in-law, who was trying to send money to a daughter in France. I wanted to protect her from exchange rate volatility, but her transaction size was too small for the Chicago Mercantile Exchange. I realized it was unfair that I could hedge transactions for big banks but not for regular people. This inspired me to create PeopleHedge, the precursor to Acceleron, to offer better foreign exchange solutions. When Dodd-Frank rules changed, we pivoted to focus on providing better foreign exchange services to community banks.

How can Acceleron's solutions help community banks?

Community banks typically rely on larger banks for foreign exchange transactions. These bigger institutions take a significant portion of the profit, leaving community banks with minimal returns at best, but more typically losses. Acceleron changes this by creating an auction process where multiple bidders compete to offer the best exchange rates. This removes the big banks from the equation, allows community banks to retain more non-interest income, and ensures better rates for clients. Our systems also improve data accuracy and compliance, reducing errors and costs.

How does your engineering background influence Acceleron's approach?

As an engineer, I'm often frustrated by how outdated banking systems are. There's a lot of room for improvement, even with basic technological upgrades. At Acceleron, we focus on making systems efficient and ensuring data accuracy. Our engineering approach includes rigorous testing and feedback, which helps us cut costs and improve service. We also ensure that our systems communicate seamlessly, reducing errors and enhancing productivity for community banks. If a bank is using Fiserv Payments Exchange, with which we have a pre-integration, we can usually onboard a client to the system the same day for no cost.

How has your experience with your son, who is autistic, influenced your work at Acceleron?

My son has autism, and managing his care involves coordinating with numerous doctors and handling a lot of disjointed medical data. This experience has taught me the importance of data integration and efficiency. At Acceleron, we apply these lessons by ensuring that our systems communicate seamlessly and provide accurate data. Just as I want all my son's medical data to be securely aggregated in one place, I want community banks to have streamlined, efficient access to financial data. This focus on data integrity and security is central to our mission at Acceleron.

What motivates you to continue working with community banks?

The financial crisis in 2007 showed me the critical role of community banks. Big banks got bailed out, but community banks suffered. During the financial crisis, My dad's factory relied on local banks for loans, and without these community banks, many small businesses wouldn't survive. I believe in helping businesses and banks that build communities. 

Community banks are essential because they are the primary lenders to local small businesses. They offer personalized relationships that big banks can't match, and they play a crucial role in supporting the local economy. Meeting people at community banks and seeing their dedication to doing a good job motivates me. I believe community banks can compete with and even outperform larger institutions by embracing technology. 

Personally, I have way too many financial accounts across multiple institutions.  Some day, I hope to consolidate as many as possible at my local credit union.  No one is there yet, but we plan to enable more of these abilities as we progress, starting with international payments.

Acceleron builds cutting-edge software that allows community banks and credit unions to conduct international payment transactions profitably through a foreign exchange (FX) marketplace. Serving over 200 financial institutions and facilitating more than $1 billion in international payments annually, Acceleron helps small banks generate non-interest income and compete more effectively with high-fee big banks. Our solutions integrate seamlessly with Fiserv, ensuring quick implementation and smooth operation. 

We will be at Fiserv Forum in September!  Contact us to book a meeting in-person or online.