How to Increase Non-Interest Income in Banks and Credit Unions Via International Payments Automation

Leveraging international payment technology to get better FX pricing and boost non-interest income for banks and credit unions 

International payments are a largely untapped source of non-interest income for community banks in a growing industry. Traditionally, smaller banks have outsourced international services to larger institutions, forfeiting a valuable revenue stream in an increasingly connected world. With advances in international payments technology, community banks now have the ability to perform currency conversions and process international wires in-house, offering clients expanded services while boosting non-interest income.

“When financial institutions outsource currency conversion services to the big banks or foreign banks, they have also outsourced revenue opportunities,” says Andrew Dillard, Chief Business Officer of Acceleron. “And so if they’re able to bring some of that back in-house, they can lower prices for customers while earning non-interest income.”

Acceleron’s technology is designed to help banks reclaim these opportunities, providing a seamless, integrated solution for handling international wires and foreign exchange transactions.

Growing demand for international payments

The demand for international payments has surged in recent years, driven by globalization, digital commerce, and the expanding reach of small businesses. More companies are sourcing materials, selling products, and hiring talent across borders, making seamless international transactions a necessity.

A Juniper Research study projects that B2B global transaction value, which stood at $83 trillion in 2024, will climb to $124 trillion by 2028, highlighting the rapid expansion of cross-border trade. As businesses scale globally, the ability to efficiently move money across currencies becomes a critical differentiator.

As Andrew Dillard, Chief Business Officer at Acceleron, explains: “Anytime you do business outside of the U.S. borders, there is a foreign exchange element to it. Whoever is able to offer FX services will earn the revenue.”

For community banks and credit unions, this presents both an opportunity and a challenge. Traditionally, they have ceded international payments to larger financial institutions, missing out on a lucrative revenue stream. However, by adopting modern international payment solutions, community banks can expand their service offerings, capture FX-related revenue, and strengthen relationships with business customers who depend on cross-border transactions.

Revenue opportunities from international payments automation

1. Transaction Fees

International payments provide community banks with the opportunity to generate revenue through transaction fees. Unlike domestic payments, international wires often justify higher fees due to the additional complexity and risk involved. Processing international wires in-house allows banks to have better control over payment processing and optimize these fees while still offering competitive pricing compared to larger banks and fintech providers.

2. Currency Conversion Margins

Foreign exchange (FX) can be a significant revenue driver. When a bank processes an international wire in foreign currency, it engages in currency conversion. Traditionally, banks have sent US dollar wires overseas, allowing the receiving foreign bank to handle the conversion and capture the profit margin. By offering FX conversion upfront, community banks can:

• Capture the revenue opportunity that would otherwise go to an intermediary bank.
• Offer customers a better rate by leveraging an FX marketplace where multiple correspondent banks bid on exchange rates.
• Enhance customer experience with transparent pricing and predictable transaction outcomes.

According to Dillard, “So when local community financial institutions send wires overseas that are not in the local currency, they are missing out on revenue opportunities. At some point in that pipeline, one currency needs to be converted into the destination currency. Someone is going to do that. Community banks and credit unions right here in the US have the ability to do that efficiently with software — and more importantly, profitably.”

Innovation in correspondent banking

So, how can banks capture currency conversion margins? By leveraging new technology and FX transaction automation. While international payments have long been a cornerstone of the global economy, the underlying infrastructure has remained largely unchanged — until recently.

Historically, international wire transfers relied on slow, opaque systems where larger banks controlled pricing and processing. While blockchain-based payments have introduced innovation, fiat currency remains the standard for most global transactions.  Meanwhile, wire transactions remain the foundation of global payments, moving more value than any other method. 

More immediately relevant to community financial institutions are new advancements in APIs and automation that are transforming how banks process cross-border payments. These innovations make wire transfers faster, more accurate, and more cost-effective, allowing smaller financial institutions to better compete with global banks.

Wire transfer automation solutions

Acceleron’s SmartRoute software, for example, is a real-time FX marketplace where multiple correspondent banks bid on exchange rates, pushing down prices. Instead of relying on static, single-provider rates, community banks and credit unions can leverage dynamic pricing, offering customers better deals while capturing more margin.

Similarly, Acceleron’s NudgeConvert real-time currency conversion technology encourages customers to send payments in the destination currency instead of in USD, ensuring that community banking institutions, rather than foreign banks, retain the conversion margin. This not only boosts non-interest income but also improves customer experience by reducing hidden fees and ensuring predictable transaction outcomes.

As Andrew Dillard, Chief Business Officer at Acceleron, explains: “NudgeConvert asks, ‘Are you sure you want to send this in dollars? Because I can waive your wire fee. By sending it in local currency, you have fixed the amount that the beneficiary is going to receive.”

Overcoming challenges

While international payments present a lucrative opportunity, many community banks hesitate due to perceived regulatory and operational complexities. The primary concerns include:

• Technology integration: Implementing new payment solutions can seem daunting.
• Compliance and AML considerations: Banks worry about the regulatory lift required to process foreign transactions.

Mitigating these challenges

Acceleron’s pre-integrated solutions address these concerns by:

• Embedding directly into existing core banking systems. Acceleron has done the heavy lifting on the technology side and is pre-integrated with leading core payments systems you already use, which ensures quick and easy onboarding. There is a need for separate integrations.
• Providing real-time pricing and conversion options.  The FX marketplace allows banks to offer transparent and competitive FX services.
• Ensuring full compliance with AML and OFAC regulations, making it as simple as processing a domestic wire. If your bank or credit union is already processing USD wires, you can process FX wires compliantly. Dillard explains in this video:
   
  

Dillard reassures banks, “With today’s technology, seamless integrations in the payment systems that banks have, they have the ability to monetize these types of transactions while not taking on additional compliance and regulatory issues—all while still providing the same customer experience.”

For community banks, international payments represent an untapped revenue stream. With customer education and the right technology in place, banks can:

• Increase non-interest income through transaction fees and FX margins.
• Improve customer retention by offering a seamless and transparent international payments experience.
• Remain competitive with larger institutions by bringing these services in-house.

As demand for cross-border transactions continues to grow, community banks that embrace these opportunities will be better positioned for long-term success and able to provide more services to their clients.

If your community bank is ready to explore international payments as a revenue opportunity, Acceleron can help. Our cutting-edge technology streamlines the process, ensuring compliance while maximizing profitability.

Contact us today to learn how your bank can implement SmartRoute and NudgeConvert to take full advantage of international payments technology.

Acceleron builds patented software that allows community banks and credit unions to conduct international payment transactions profitably through a correspondent banking 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 top payments platforms, ensuring quick implementation and smooth operation.