Fintech-based foreign exchange services create options for small institutions
Offering international wires, payments and transfers may help credit unions serve more members better.
Today, many credit unions are searching for ways to increase revenue by broadening membership beyond traditional affinity or select employer groups and even beyond the local community. At the same time, there are an unprecedented number of mergers with other credit unions. While these initiatives should be applauded, credit unions also need to expand their services to compete more effectively in the financial services marketplace.
One offering to consider is offering international payment and foreign exchange—or “forex”—services. Although forex was once considered the domain of large banks serving international business clients, the explosion of global e-commerce and international, cross-border transactions have made it more important.
Credit unions that do not currently offer forex are missing an opportunity to retain and grow members who want to send money home or do international payments. Further, credit unions that outsource it are enabling potential competitors and, due to the lack of transparency, potentially exposing members to less than competitive rates. Delivered with transparency and integrity, forex represents a sustainable revenue stream and a tool to build stronger and more loyal relationships by delivering more of the member’s banking needs.
The good news is that there are now forex solutions that drive down the transaction costs for the member, with complete transparency and predictable fees. Using these solutions allows credit unions to better compete for their members’ business.
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