Of this there is no doubt: competition for marketshare and mindshare is fierce all throughout the financial services industry. Not only in the international money transfer segment, but across banking, insurance, pensions, and private equity firms.
Digital transformation of legacy businesses and institutions in the financial services space is critical to keep up with disruptive fintech startups:
- Branchless and mobile challenger banks
- Online and mobile lenders
- Financial data and educational content
- Robo-investment advisory companies and mobile app investing
- Online payment service providers (international and domestic)
- Online loan refinancing
- Cloud-based Human Capital Management
- Online agentless insurance carriers
Some established organizations have the necessary resources to extend their own business through online channels. For others, acquiring a disruptive fintech"unicorn" makes sense in terms of speed to market and brand recognition.
XE services provide banks, mortgage lenders, private equity firms and pension management firms with contract international online payments services that accelerate time-to-value and ROI. Your brand, our proven digital money transfer network to the last mile to individual accounts. No need to build your own international payment network or acquire an international payments business.
XE in the Age of Digital Payments and Coopetition
There are many cases where XE competes with financial service providers in one of our business lines, whereas we partner with them and provide those same companies with contract services like our Currency Data and Payment APIs. XE is globally recognized as the provider of the "true rate of exchange", so it is highly sought after and broadly trusted.
A recent Bearing Point whitepaper, Co-Opetition in the Banking Industry, perfectly describes how financial institutions and fintech companies like XE can mutually benefit from contract international online payments:
On the one hand, FinTechs have understood that they either need access to a critical number of customers and/or a bank’s infrastructure. Thus, many have opened up for cooperation. On the other hand, banks have become aware of the disruptive potential of FinTechs and their capability to innovate and digitalize. Hence, banks have acknowledged cooperation with FinTechs as an opportunity to increase flexibility, speed and innovativeness.
Much like joint ventures between construction companies or telecommunications providers, a strategic alliance between your financial services organization and XE can provide significant ROI in terms of these ten benefits:
- A new, sustainable revenue stream
- Expanding your customer mind share and wallet share
- Mitigation of regulatory exposures and reputational risk
- Access to a proven, best-in-class international payment service
- Support for your core banking products like mortgages, pension transfers, and large overseas investments
- With a specialist international payment provider, you (and your customer) may get a more favourable exchange rate and lower transaction charges.
- Making payments at the right time can improve your customer's visibility to their cashflow.
- By reducing the manual effort required to set up payments, you can save costs and reallocate resources
- Reconciliation processes can be simplified.
- By automating the process, management reports can become easier and quicker to produce.
The BearingPoint whitepaper says that banks that partner with fintech companies like XE.com to serve their international , while avoiding a different kind of ROI - the Risk of Ignoring.
White Label Services for Financial and Technical Services Companies
For many traditional financial institutions, contracting these services under a "white label" contract arrangement makes the best sense. This sort of contractual arrangement expands a financial institution's service offerings to new channels and audiences.
Our white label contract services enable our financial services partners to benefit from:
- Lower or minimal startup costs, and predictable cost models going forward.
- Interoperability with your secure client portal, core ERP and related back-office applications
- Delegation of payment technology infrastructure management to XE.
- Transfer of the burden of meeting international regulatory standards like PSD2 shifts to XE, which we consistently do for every country we serve.
- Proven domain leadership.
- Pre-routed international transaction mapping, and brand-ready user interfaces.
- For Mass Payments - it's easy to initiate several transfers at once across multiple currencies
XE's Currency Data, Payment, and Mass Payments suite of APIs make up our White Label solutions portfolio. Your colleagues, partners, and customers will appreciate how your branding extends throughout their payment experience. Your shareholders and finance team will appreciate how our white label partnership will help you reduce transaction costs, and avoid significant application development overhead.
Proven Services and Successful Partnerships
XE has been in the business of secure, reliable online international money transfers for over a quarter of a century. Every month, over 33,000 people and 2,000 businesses trust us to make global payments, send funds to family, pay international businesses, and buy foreign real estate.
We also partner with several well-known financial institutions to provide stand-alone or integrated online payments for their customers.
Two examples include Crédit Agricole Britline (since 2014) and John Lewis Financial Services (since 2014).
One of our representatives from our global business services team would be happy to discuss your institution's online international payments with you.