business finance news

Banking circle improves payments transparency

POBO and COBO give Payments businesses and Banks the ability to offer their customers transparent payments and collections. ...

Financial infrastructure provider, Banking Circle, is tackling the compliance and reconciliation issues often faced in global B2B payments with its new Payments on Behalf of (POBO) and Collections on Behalf of (COBO) solutions. 

Historically B2B payments have been received in the name of the payments business or bank rather than the underlying customer. This can result in reconciliation issues which, in turn, can cause delays in settlement and impact cashflow. The new Banking Circle solutions address these pain points by enabling financial institutions to offer immediate visibility of the sender’s details when processing B2B payments, and to collect funds locally into accounts in the underlying customer’s name. 

Crucially, Banking Circle POBO and COBO mean Payments businesses and Banks can deliver this service without relying on the slow, costly and outdated correspondent banking network or investing in building their own solution. 

Available globally through SWIFT, Faster Payments, CHAPS, SEPA and local clearing, the Banking Circle POBO and COBO solutions are currently available to Payments businesses in 24 currencies and to Banks in GBP and EUR, with more currencies and local capabilities planned. Financial institutions can, therefore, manage payments on behalf of their customers, enabling funds to be sent out and received with full payment transparency, providing clarity and ease of reconciliation for beneficiaries. The service also allows Payments businesses and Banks to comply with Wire Transfer Regulations (WTR). 

“Existing solutions do not provide institutions with true unique IBANs, with payments often still received in the name of the payments business or bank rather than in the name of the payer”, explained Anders la Cour, co-founder and Chief Executive Officer of Banking Circle. “And this lack of payments ownership can lead to reconciliation issues which, in turn, can delay settlement times, thereby impacting on cashflow. 

“In response, we have built a solution that allows banks and payments businesses to give their customers access to transparent, local payments and collections across borders, without the need for a physical presence or a relationship with a correspondent bank in that region. It was important that our new solution allowed providers to comply with complex payments regulation without Banking Circle taking ownership of the relationship. As a result, the financial institution remains in control of the relationship and customer experience, while Banking Circle provides the infrastructure for payments and collections to be made quickly and at low cost, regardless of international borders.” 

Utilising Banking Circle’s unique financial infrastructure, POBO and COBO provides Banks and Payments businesses with an optimised end-to-end payment solution and visible payment chain which is WTR compliant. 

Smoother, faster reconciliation is achieved through dedicated multi-currency Virtual IBANs in multiple jurisdictions, delivering improvements across reconciliation, consolidation, risk management, operational efficiency, transaction processing and liquidity management. 

Available via API, UI and SWIFT, the solutions can be accessed by new and existing Banking Circle clients, with just a connected or unconnected BIC required by the Payments business. 

For more information visit: www.bankingcircle.com 

For more Finance & Investment news follow i-invest Online


Other stories you may like

  • Uk third in the world by ransomware attacks – who are the targets?
    A unique look into ransomware attacks that affected companies with 3.6T GBP of combined revenue The UK is 3rd in the world by ransomware attacks, new research by cybersecurity company NordLocker reveals. The new study analysed numerous databases of ransomware incidents that affected over 5,000…
  • The future of grief – using technology to preserve memories
    W1 Immersive Voice Gems: 100 Year Archive – Voice Gems is creating a new way to preserve the human voice, containing messages of love, death, hope and legacy On the 8th September, pioneering artists and technologists Harry Yeff (Reeps100) and Trung Bao opened a solo…
  • Kroo Brings Apple Pay to Customers
    A safer, more secure and private way to pay with iPhone and Apple Watch Kroo, having received its full banking licence, today brings it customers Apple Pay, a safer, more secure and private way to pay that helps customers avoid handing their payment card to…
  • Yapily forms strategic partnership with Pleo enabling simplified payments experience for its UK users
    Pleo teams up with open banking provider Yapily to boost cash flow for businesses Fintech unicorn Pleo, which offers a smart business spending solution, has formed a strategic partnership with open banking platform Yapily to enable a simplified payments experience for its UK users. Research…

Follow us