Switzerland-based banking software company Temenos has announced its cloud-native Correspondent Banking solution as banks look to modernise cross-border payments in the cloud. Temenos’ Correspondent Banking solution supports the expedited addition of new alternative payment rails and payment types using payment adaptors and an extensive set of APIs.

This aims to help banks and payment service providers stay ahead of market changes and grow profitable cross-border payment services. Temenos’ Correspondent Banking solution capabilities The Temenos Correspondent Banking solution includes pre-configured banking capabilities for nostro and vostro account servicing, cash management, cross-border payments, treasury, liquidity management, customer onboarding, and financial crime mitigation. It can be taken either as a SaaS service or deployed on the cloud, supporting 24/7 payment processing, and operating alongside any banking system, including Temenos core banking.

The solution is targeting domestic banks that service their correspondent banking business through outgoing and incoming cross-border payment flows, or international branches and subsidiaries processing payments for their head office and customers in non-domestic markets. Per the announcement information, international payments revenues amount to up to USD 200 billion globally, equating to over one quarter (27%) of global payment transaction revenues. As the world is also moving to instant payments, by connecting instant payment rails in domestic markets to cross-border flows, payments can be executed on an increasingly tighter timeline.

Concomitantly, banks are pressured to provide real-time, frictionless cross-border payment services at low cost to ensure they remain competitive and meet both compliance and customer needs. They face increased competition from fintechs, high payment volumes due to growing digitisation, continuing globalisation of markets, and the need to adhere to new regulations and standards. Within this context, IDC officials advise that new rails, tech, and business opportunities are driving banks to undertake an array of payments modernisation projects, and whereas retail banks leverage cloud tech to help them transform, the cross-border market has been lagging by comparison.

As instant payment schemes and cross-border options keep growing worldwide, banks looking to remain relevant in international payments should consider the addition of cloud tech to their cross-border strategy. Commenting on the solution, ABN AMRO representatives said that with Temenos, the company can operate a single global payments hub for both high and low-value payments for domestic and international payments. Per their statement, the solution helps ABN AMRO decrease the cost of global compliance, achieve high STP rates, and expedite innovation for its customers.

More to this point, Temenos spokespersons said that as there are more ways to send money internationally and transaction volumes are booming, it is vital for banks to have the appropriate tech and platform to innovate in payments and scale efficiently. As SaaS, the Correspondent Banking solution enables banks with a low-risk modernisation path to elevate their correspondent banking capabilities helping them maintain and grow their cross-border payments business in a sustainable manner. Per their statement, the payments space presents growth opportunities, with the company having recently been selected by Convera, a B2B cross-border payments company, to modernise their payments infrastructure, and Temenos plans to further invest in its single code base across account services, banking, and payments, making its offering increasingly compelling.

.