TenureX leverages Google Cloud Platform to offer a new model of correspondent banking

As challenges are mounting for the traditional correspondent banking model, innovative technology can reduce the risks and increase speed and global reach

TEL-AVIV, Israel, June 13, 2022 /PRNewswire/ -- Although the correspondent banking model has existed in various forms for centuries, today it faces many challenges that mean it must evolve to remain relevant. The urgent need for change was underlined by the G20 in April 2020, when the Financial Stability Board (FSB) called for the public and private sectors to cooperate on innovation projects. As a result, in October 2021, the FSB issued the G20 Roadmap for Enhancing Cross-border Payments.

Facing the future

There are four main problems that payment innovators must solve: high cost, low speed, limited access, and limited transparency. Together they present serious obstacles to growth and financial inclusion together with correspondent banking being preserved for privileged regions and customer types.

Smaller local banks, money service businesses, and regulated FinTechs are excluded from traditional correspondent banking because of a binary risk-based approach. Instead of managing risks, banks frequently make simple yes/no decisions, pushing the underserved to use unregulated or lightly regulated services for payments.

The key issue is that banks are assessing opportunities on a subjective basis. Rather than focus on the merits of individual transactions, one transaction at a time, they are entering (or exiting) correspondent relationships based solely on the perceived risks in a particular geography or with a particular customer.

Payments in the digital era

TenureX has collaborated with Google Cloud to develop a secure and trusted cloud service which shall eliminate the constraints of bilateral, relationship-based banking. With TenureX, financial counterparties can cooperate seamlessly and confidently, one transaction at a time.

Built on Google Cloud Platform (GCP), TenureX promises to completely unlock the legacy of operations of correspondent banking. TenureX creates a digital layer that enables new payment corridors and new customers to join the banking ecosystem through a pay-per-transaction model instead of the relationship model, which is effectively a membership club.  TenureX doesn't bypass or disrupt correspondent banking; it adds value and control to the existing structure and uses transaction data to strengthen the interface between banks and increase trust.

Ben Yaniv Chechik, TenureX Founder and CTO:

We chose GCP mainly because of their security and compliance, as well their stability & scalability. GCP offers us a wide variety of data processing services (such as the magical BigQuery) and a way to process massive amounts of data at a rapid pace.  We embedded these services into our platform to be able to  provide a powerful solution for financial institutions to transform the way they operate correspondent banking. As TenureX serves financial institutions around the world, latency is another challenge. GCP provides a better latency through their 10Tbs cable system. These are crucial elements for us as we aim to  deliver & enhance value to financial institution's customers while reducing costs, improving efficiencies, and enabling growth, all while adhering to the strictest security and compliance standards."

With GCP's solid integrity, security and reduced risk, TenureX is promised to allow its counterparties to communicate multilaterally and objectively in real time, reduce operating costs, gain new revenue streams, diversify income, and boost financial inclusion.

Developed with help from Google Cloud Services, the TenureX Platform mission will make a major contribution to the G20 Roadmap for Enhancing Cross-border Payments.

Website - http://www.tenurex.com

For further information:
Izhar Arieli
CEO and Co-Founder
Phone:
+ 972 (0) - 73 – 326-0303 (ISR)
+1- 605 – 836-8739 (USA)
Email: [email protected]

SOURCE TenureX