Reducing risk, maximising success in critical international payments
by Wim Grosemans, Head of Product Management International Payments - Cash Management, BNP Paribas
There are many anecdotal stories about bottles washing up on coastlines around the world containing long-lost messages and valuable treasures years after they were sent. Presumably, the person who dropped the bottle in the first place had no expectation that it would reach a particular destination and when. But are treasurers paying any more attention when making their business-critical, time-sensitive international payments?
Diverse regulations and payments infrastructure
When making a payment, every treasurer expects the beneficiary will receive the right amount on the correct value date. Indeed, this is generally relatively straightforward in the case for domestic payments or cross-border payments between liberal economies with a comparable payments infrastructure. The challenge comes, however, when making payments in currencies or markets where regulations are more restrictive or the local clearing infrastructure is less automated. In these situations, the risk of payment failure is high unless the processing bank brings specific local and cross-border expertise, responsive customer service and robust, secure processing capabilities.