Corresponding banks pose a risk to off-shore banks and their customers. Should a corresponding bank decide to stop working with a specific bank or region, the value proposition for the offshore bank is called into question. Locally, banks are struggling to increase demand deposits. New Bank Rail was built to help offshore banks counter their correspondent risk, while offering local banks a low cost option to affect their Tier 1 Capital Ratio.
New Bank Rail connects directly to existing core banking systems for settlement of funds using local bank transfer, ACH, and the Automated Clearing House Real-Time Payments (RTP) technology. Offshore banks are connected to US banks through a secure platform ensuring KYC, AML, and BSA compliance.
Implementing New Bank Rail has a number of benefits including faster transaction speed, lowers fees, and most importantly no lost or delayed transactions requiring tracers or manual intervention.
No correspondent bank needed or required.
A fully compliant platform connecting like-minded tech-forward banks
Money transfer cost is a fraction compared to traditional wire transfer
Timing of receipt of money is < 1 second vs 1-4 days with traditional wire transactions
Ledger system is completely secure and instant; allowing money to be tracked and move in real-time
New Bank Rail utilizes a suite of modern components developed to ensure secure, complaint, non-reversible transactions. The core functions operate similarly to the SWIFT network where New Bank Rail doesn’t actually transfer funds, but instead it sends payment orders between institutions’ accounts, similar to using SWIFT codes.