Payments

11:31 AM
Connect Directly
Facebook
Twitter
Google+
RSS
E-Mail
50%
50%

Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service

Bank of China New York will be using Deutsche Bank’s Guaranteed US Plus solution to improve price transparency of cross-border payments.

Bank of China New York and Deutsche Bank announced a new cash management relationship today that will offer better fee transparency for Bank of China New York’s customers that send money to U.S. recipients. Deutsche Bank’s Guaranteed US Plus solution will enable Bank of China New York to offer next-day value with no deductions on U.S. dollar payments sent to U.S. beneficiaries, according to a press release from Deutsche Bank.

Many international payments are impacted by deductions or fees that recipients have to pay out of the principal, leading to the recipient often getting less than the value of the payment.

[For More International Payments News: How Accuity Is Helping Increase STP Rates for International Payments]

Deutsche Bank’s Guaranteed US Plus cross-border payments solution automates routing of high-value international payments to the ACH network, enabling recipients to get the full value of the payment the day after clearing. This means that with the Deutsche Bank solution, Bank of China New York can give its customers transparent fees and assurance that payments they send to U.S. recipients will be received in full, according to the release.

“Bank of China will become the first Chinese bank to utilize and benefit from our new service which is of growing importance as payment flows continue to increase between the U.S. and China,” Jeffre Bisig, Deutsche Bank’s North America head of cash management for financial institutions sales, said in the bank’s statement.

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
KBurger
50%
50%
KBurger,
User Rank: Author
4/15/2014 | 4:41:37 PM
re: Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service
The transparency theme is interesting here and it reflects not just the needs of the Bank of China, but also the expectations of corporate customers (regardless of where they are based) that they are getting the best prices and most competitive services from their banks.
Chip Wickenden
50%
50%
Chip Wickenden,
User Rank: Apprentice
4/15/2014 | 6:03:28 PM
re: Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service
This is a very interesting development; especially as it matures bilaterally between China and the U.S. and as it moves outward to include more countries and currencies. It has the potential to remove a great deal of friction from global commerce.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
4/16/2014 | 7:46:32 PM
re: Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service
Absolutely Chip. Many people aren't aware of all of the friction in cross-border payments because they don't send money internationally. But it's a huge hangup in improving global commerce and is also a step in the right direction in terms of banks being more transparent about their fees.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
4/16/2014 | 7:49:22 PM
re: Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service
The speed of delivery of the payment is also important to note. I think that international payments are an area where the customer experience is so poor that it would be easy for a new player to enter the market and take customers away if it can provide better speed and price. Deutsche seems to be getting ahead of the curve on that.
KBurger
50%
50%
KBurger,
User Rank: Author
4/16/2014 | 8:50:44 PM
re: Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service
That is very true. This isn't exactly the same thing, but I just read an article in the Financial Times that people in Africa essentially pay a "remittance tax" of almost $2 billion/year because of the higher-than-average cost of sending money there. That's partly becasue 2 companies (Western Union and MoneyGram) dominate the business, according to the Overseas Development Institute. Not quite the same as SWIFT payments, but shows how much room for improvement there is still in the payments system.
Chip Wickenden
50%
50%
Chip Wickenden,
User Rank: Apprentice
4/21/2014 | 2:42:07 PM
re: Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service
I agree completely. If DB is successful, and the value proposition would tend to say that they will be, this is an early step in a significant change to the way cross border business will get done. Worth watching.
Abdul Jaludi
50%
50%
Abdul Jaludi,
User Rank: Apprentice
4/21/2014 | 3:57:07 PM
re: Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service
Smart move by DB. Providing Bank of China customers a needed service at the best prices pretty much ensures DB is first in line for future offerings.
Becca L
50%
50%
Becca L,
User Rank: Author
4/27/2014 | 9:30:31 PM
re: Bank of China NY Signs On To Deutsche Bank’s Cross-Border Clearing Service
I had no idea this was such an issue. It seems any stride in this area can have a big impact on the industry. Interested to see DB's progress down the road.
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology Dec. 2, 2014
BS&T's 2014 Elite 8 executives are leading their banks to success, whether it involves leveraging the cloud, modernizing core systems, or transforming into digital enterprises.
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.