Planning to deliver “correspondent-banking-in-a-box,” Israeli startup TenureX has partnered with U.K. consultancy Martin Fiddaman Associates to help overseas banks in the U.K., challengers and FinTechs engage with correspondent banking services.
Because of the banking industry’s continued use of legacy technology, cross-border payments can be poorly executed, with parties unable to access the data they need to make decisions, TenureX said in a Tuesday (Aug. 9) press release announcing the partnership.
“Technology is crucial to reviving the correspondent banking industry by bringing full data visibility and a unified pre-agreed set of compliance rules to every party, but it also needs the hands-on know-how of a dedicated specialist,” TenureX Co-Founder and Chief Operating Officer Or Kapelinsky said in the statement. “Partnering with market experts such as Martin adds a crucial layer of expertise and customer service that will bring the capability of the TenureX platform to the maximum value for its customers.”
TenureX offers a cloud-based digital platform that enables customers to embed their risk-based approach and compliance rules into each payment instruction and digital workflow, reduce the cost of cross-border transactions and facilitate compliance, according to the press release.
“The current correspondent banking model is fundamentally broken and is biased towards the larger players,” Martin Fiddaman said in the statement. “TenureX has a unique proposition to help restore some balance.”
The pain points in cross-border payments are acute, The Clearing House (TCH) EVP Russ Waterhouse told PYMNTS’ Karen Webster in an October 2021 interview.
The various payment systems that are domiciled in one country or another traditionally don’t overlap in their operating hours; ACH payments have been done in batches, across multiple sites and across multiple windows in time; fees are high and transactions are less than transparent, Waterhouse said.
For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.