Every day, your international wire operation sends customer-initiated US dollar wires abroad. You know this, but did you realize how much more revenue you could have made?
When customer-initiated US dollar wires are sent outside US borders, the receiving foreign bank converts the US dollars into a local currency for the benefit of the recipient. When this happens, the receiving bank is making money on the conversion; however, this is money that should have been yours! The foreign bank receives revenue generated from the conversion—a typical retail FX transaction—and that revenue is, on average, four to five times that of a standard wire fee.
In addition, money is lost when sending the customer’s US dollars abroad due to the subsequent conversion to local currency executed by the receiving bank. In fact, the customer beneficiary may actually end up not receiving the needed foreign currency amount due to the conversion costs and other related fees that are charged. The sum of the conversion costs and fees could necessitate the creation of a second wire, with additional fees and charges, which is just more money lost to the transaction.
In such a competitive market, the ability to provide FX services and a better customer experience is imperative. With SS&C’s Singularity, you can provide your customers the ability to execute international wire transactions using any currency that you support. Through an intuitive interface, your customers can specify the exact foreign currency amount to be delivered, while giving you authorization to automatically debit the customer’s US dollar account as payment. When the transaction is complete, the customer receives a confirmation.
Singularity’s straight-through processing supports your internal operations from front to back. Once the customer transaction is complete, the application provides full confirmation and settlement functionality for all wires and transactions, in addition to robust counterparty and position limit checking. In addition, OFAC checking of all outgoing wires is automatic, and upon execution, the wire transaction flows immediately to your traders’ desktop, allowing them to either cover the transaction in the marketplace via a liquidity provider or fund the request out of an existing balance held by the bank.
Singularity’s FOREX Business Portal easily integrates with your bank’s eBanking website and supports Single Sign-On functionality to allow a seamless client experience.
SS&C’s Singularity delivers a market-leading solution for the trading and treasury operations of banks globally. In combination with its predecessor applications, time-proven with more than 25 years in use by some of the most demanding banking clients around the world, Singularity is a fully integrated solution supporting the entire range of treasury asset classes and functions.
Download our "Singularity Foreign Exchange Solution" brochure to learn more about how the Singularity FOREX Business Portal can help you achieve new levels of operational efficiency, data accessibility, and transparency that translate into significant cost savings.
Written by Greg Fritsky
Singularity Product Specialist