Using multiple correspondent banks to protect against de-risking

A wave of de-risking is sweeping through the correspondent banking industry, posing significant challenges for financial institutions worldwide. De-risking refers to the trend where correspondent banks terminate or restrict business relationships to minimize risk. This trend threatens the stability and operational efficiency of smaller community banks that depend on these relationships to offer comprehensive international services.

So, how can community banks protect themselves against de-risking? The key lies in maintaining and diversifying multiple correspondent banking relationships. By doing so, you can safeguard your operations, ensure continued service to your customers, and reduce the risks associated with the sudden termination of any single relationship. 

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Why choose Acceleron?

Innovative platforms like Acceleron provide access to multiple correspondent banks through a single interface, allowing community banks to benefit from bulk volume pricing negotiated with correspondents of varying risk appetites. This approach offers the flexibility to choose the best correspondents for specific needs, ensuring greater operational resilience.

Acceleron Bank develops technology for international payment processing tailored to community banks and credit unions, enabling them to offer competitive FX transactions profitably. Acceleron works with more than 200 banks and facilitates over $1 billion in international payments annually, generating tens of millions of dollars for our bank partners.

How it works:

1. Activation: We activate our technology, which is already integrated into your existing system.
2. Integration: Once onboarding is complete, Acceleron becomes the default wire solution.
3. Growth: Grow your non-interest income and better serve your customers.

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How much can my bank earn?

On average, each transaction processed through Acceleron is around $20,000, with your bank earning up to 1.5%, or $300 per transaction. Based on volume, your potential revenue can average around 1% of the total foreign exchange volume. For example, if your annual international volume is $100 million USD, with an estimated FX volume of $10 million USD, your annual revenue at 1% would be $100,000 USD.

Services you can offer with Acceleron's technology

With Acceleron's technology, you can offer streamlined currency transactions for payables, receivables, and forwards.

Which of your clients are a fit for FX services?

Small to medium-sized enterprises with $5 million to $50 million in revenue are ideal candidates for FX services. Import, export, and service companies with payables or receivables in foreign currency will benefit significantly. Additionally, mid-size companies that often go unnoticed by larger banks can be well-served with Acceleron's FX solutions.

Bank benefits

Empowering community banks is our only business. With Acceleron, you can immediately increase non-interest revenue and trade and settle easily in over 90 countries. Access to competitive bidding through the FX marketplace compresses costs and increases efficiency. You can eliminate the risk of being dropped by your provider and integrate Acceleron's technology to gain access to multiple correspondent banks at no cost. No modifications to your existing systems, partners, or processes are required, ensuring a seamless transition.

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. 

Explore how Acceleron's FX Marketplace can enhance your bank's resilience and profitability. Contact us to schedule a meeting.