Facing the future
There are four main problems that payment innovators must solve: high cost, low speed, limited access, and limited transparency. Together they present serious obstacles to growth and financial inclusion together with correspondent banking being preserved for privileged regions and customer types.
Smaller local banks, money service businesses, and regulated FinTechs are excluded from traditional correspondent banking because of a binary risk-based approach. Instead of managing risks, banks frequently make simple yes/no decisions, pushing the underserved to use unregulated or lightly regulated services for payments.
The key issue is that banks are assessing opportunities on a subjective basis. Rather than focus on the merits of individual transactions, one transaction at a time, they are entering (or exiting) correspondent relationships based solely on the perceived risks in a particular geography or with a particular customer.
Payments in the digital era
TenureX has collaborated with Google Cloud to develop a secure and trusted cloud service which shall eliminate the constraints of bilateral, relationship-based banking. With TenureX, financial counterparties can cooperate seamlessly and confidently, one transaction at a time.
Built on Google Cloud Platform (GCP), TenureX promises to completely unlock the legacy of operations of correspondent banking. TenureX creates a digital layer that enables new payment corridors and new customers to join the banking ecosystem through a pay-per-transaction model instead of the relationship model, which is effectively a membership club. TenureX doesn't bypass or disrupt correspondent banking; it adds value and control to the existing structure and uses transaction data to strengthen the interface between banks and increase trust.
With GCP's solid integrity, security and reduced risk, TenureX is promised to allow its counterparties to communicate multilaterally and objectively in real time, reduce operating costs, gain new revenue streams, diversify income, and boost financial inclusion.
Developed with help from Google Cloud Services, the TenureX Platform mission will make a major contribution to the G20 Roadmap for Enhancing Cross-border Payments.