DigitalCFO Newsroom | 18 March 2022
Solution significantly lowers Financial Institution settlement costs by up to 90% for international brokerage account transactions.
Nium, a global leader in modern money movement, today introduced a new brokerage payments solution that offers international financial institutions (FIs) a faster and more cost-effective method of settling transactions to select U.S. brokerages enabling customers to easily invest in U.S. equities. When compared to transactions settled via the SWIFT International Payments Network, Nium lowers settlement costs for Financial Institutions by up to 90% for international brokerage account transactions.
Global brokerage firms are seeing increased retail investor interest in overseas equities markets, particularly in the United States. Until now, transaction settlement for financial institutions serving these brokerages over legacy payment networks was costly and slow. Now, with Nium, FIs get the chance to dramatically lower costs and pass those costs to customers, or increase their revenue. The best part, existing Nium customers need no additional technology integrations to take advantage of this solution.
“At Nium, we are constantly seeking to empower growing businesses with global reach to move money in smart, fast, and safe ways. Our new payments solution for FIs that send money to brokerages allows their retail customers to invest in U.S. equities – fast and simple. Nium’s new solution dramatically lowers the expense of these transactions, allowing FIs to either share cost savings with their customers or re-invest profits in the business,” says Frederick Crosby, Chief Revenue Officer at Nium.
Banks and financial institutions integrating with Nium’s global payments network and new brokerage solution will now enjoy the following benefits:
- Cost savings of up to 90%: Global financial institutions leveraging the Nium brokerage solution can save up to 90% on each transfer, and use those savings to drive P&L gains or increase volume by offering customers lower cost transfers.
- Improved customer satisfaction: Decreasing friction associated with investing in the U.S stock market for international investors drives customer loyalty and brand affinity.
- Increased demand for new partnerships: By leveraging Nium’s network to optimize payments to U.S. brokerage accounts, global FIs can reach new customers by taking advantage of Nium’s low-cost transfers to drive new brokerage partnerships.
As retail investors increasingly diversify their investments across global markets, banks and FIs hoping to compete in the global market must continuously innovate, iterate and improve on their technology stack and user experience. Today, integrating with the Nium global payments network enables these global businesses to maintain competitive advantage and differentiate themselves within the industry.