FX and Cross-border payments: using technology to bridge the divide

It’s been estimated that by 2027, the value of cross-border payments will have risen $100 trillion in the previous decade thanks to, in part, rapid expansion of supply chains across borders, international trade and e-commerce and international remittances. A study suggested that 87% of global merchant executives see cross-border sales as their biggest growth potential, yet despite their importance, FX and cross-border payments are often complicated and expensive due to slow processing times, high banking fees and complex international regulatory requirements.

Technology has thankfully simplified these processes in recent years, but not every market has taken advantage of recent innovations or has the luxury of being able to invest in the latest tech. Emerging economies are disproportionately impacted by this technological divide. Hard-to-reach markets suffering from prolonged periods of geopolitical disturbance are particularly vulnerable, and when less money is available, it is absolutely essential that it is spent in the most efficient way possible to ensure it arrives at where it's needed most, such as aid disbursement, or the purchase of essential commodities.

In such locales, FX and cross-border processes are critical to transforming livelihoods, societies and economies; connecting underserved markets to one another and allowing for the free flow of trade, finance and support. Yet inconsistent use of technology in emerging economies can even today result in money taking several days to reach its desired destination. It is essential then, that influential international financial authorities, such as central banks, embrace new digital tools to meet customer demands. Too many FX payments, especially when dealing with emerging non-G10 currency markets, are still carried out on analogue or hybrid platforms, slowing settlement times and allowing human error to creep into payment processes.

At Crown Agents Bank (CAB), we realised that the whole FX payment process needed to be moved onto a complete digital platform. In response, we established a powerful FX service offering, available directly through Bloomberg, Reuters, 360T and more, where customers can find exact exchange rates and complete transactions digitally, in mere seconds. By embracing AI and machine learning, we’ve also introduced automation to eliminate human error and reduce the need for oversight.

We make sure to stay on top of emerging technologies in order to build solutions to cross-border payment challenges providing a direct line from the financial centres of the world to hard-to-reach markets. As a UK-regulated provider of wholesale foreign exchange and payments services, we’ve been supporting clients around the world for nearly 200 years. If you have money you would like us to move for you, or would like to hear more about our FX and cross-border payments efforts, please get in touch.