Correspondent Banking - What might replace a clunky system in a world where payments are becoming ever more global?

The Bank for International Settlements (BIS) said in a recent report that the number of correspondent banks — where banks and financial institutions (and domestic payment systems) are linked together — slipped 3% in 2019 vs. 2018 and declined a significant 22% from 2011 to 2019.

Even though more money is crossing borders digitally, there are fewer correspondent banks to move that money. And the hallmark of that money movement — a lack of transparency and speed. What might replace a clunky system in a world where payments are becoming ever more global?

Read the Payments.com article HERE.

Asia is reinventing banking

From McKinsey’s Future of Asia research program:

"The West has led much of the development of the world’s modern banking industry across all dimensions⁠—from size, to growth, to business models, and innovation. In recent years, however, Asia has tilted the scale, delivering game-changing growth and innovations in banking services. This reflects not only the increasingly central role of diverse Asian economies in global trade and economic growth, but also Asia’s renewed leadership in scaling innovative technologies and new business models. Now, as the pace of growth slows, Asia’s banks face serious challenges and must reinvent themselves to survive."

You can read this paper, in which McKinsey summarizes the current status of Asia’s banking industry and outline one possible plan of action by which banks may reinvent themselves for the digital age HERE.

Online Training – Globalization, Finance and the Supply Chain

More and more businesses and corporations are now operating on a global scale.

From fintech, international trade, cross border payments and supply chains, business has taken on an increasingly globalized role. As globalization becomes more and more important so to do the risks.


What this all means is covered in our new compendium of courses, “GLOBALIZATION, FINANCE AND THE SUPPLY CHAIN”.

Check it out at HERE 

Earn 19.5 CPE credits.

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Online training course - Understanding Supply Chain Finance

Part 4 of our 4-part International Trade Online Training Course

Supply Chain Finance refers to a variety of financing and business processes aimed at providing short-term credit to improve the working capital situation throughout the supply chain for both buyers and sellers.

While the provision of short-term credit is not something new, connecting the financial transactions to the movement of value through a supply chain is. This is the process that lies at the heart of supply chain finance. 

The supply chain network – usually referred to as the ecosystem - is a complex one. This is especially true for multinational companies that operate with suppliers all over the world. The soundness of a global supply chain isn’t simply measured by revenues and profits. A more appropriate indicator is how efficiently capital flows between buyers and suppliers. Slow moving capital, just like slow moving inventory, creates unnecessary costs and inefficiencies in a supply chain.

In order to understand how supply chain finance can help both buyers and suppliers, it is important to understand its underlying principles. This is the objective of this Illumeo - Citadel Advantage course. 

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Access ths course today by clicking HERE

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