Mr. Laust Bertelsen, CEO, Banking CircleMr. Laust Bertelsen, CEO
The existing correspondent banking network is the slowest and most expensive way for banks to move money for their clients. As such, there is a growing need to reduce the number of stages of any transaction to make payments faster and cheaper. Enter Banking Circle. The bank’s mission is to make international payments feel like local payments. It helps financial institutions provide their customers with faster, cheaper banking solutions, including bank accounts and local and cross-border payments. “We have invested in the difficult job of integrating a vast network of local clearing and payments schemes to build a unique super-correspondent banking network. This enables us to better tackle payment-related pain points,” says Mr. Laust Bertelsen, the CEO of Banking Circle.

Wholly focused on delivering a payments solution for payments businesses and banks, Banking Circle has built the first and only real-time clearing and settlement network globally for FinTechs and national and regional banks. The bank’s techbased infrastructure enhances its customer proposition – without any requirement for upfront investment in systems or process changes.

Central to Banking Circle’s international payment solutions is the Banking Circle Virtual IBAN solution, that enables local B2B payments and collections across borders and eliminates the need for a physical presence or a relationship with a correspondent bank in that region. It also reduces the likelihood of errors in processing crossborder payments.

This improves the reconciliation and settlement times and helps banks and payments businesses improve the customer experience. Further, the innovative Banking Circle POBO and COBO service allows financial institutions to send payments in the name of the payer so that the recipient sees immediately where the payment originated and can quickly and easily reconcile that payment.
Far more reliable than existing offerings, the Banking Circle solution provides an optimised end-to-end payment solution and visible payment chain which is compliant with Wire Transfer Regulations (WTR).

Banking Circle’s cloud-based de-coupled architecture means the bank can react quickly to changing client demands and provide its clients and their customers with ever-faster payments, particularly when compared to traditional banks that are anchored by legacy technology and processes. This ability to bring new solutions to market quickly and cost-effectively has been behind several new solutions launched in the last two years, fixing significant challenges for payments providers and their customers. In June 2020, Banking Circle launched a USD Collection solution for Amazon payments to stores based in the Americas (the U.S., Canada, and Mexico) and followed up with the launch of USD collections across a larger number of online marketplaces in November 2020. This allows merchants to sell internationally and take control of the foreign exchange and payment method of their store income.
  • We have invested in the difficult job of integrating a vast network of local clearing and payments schemes to build a unique super-correspondent banking network

A leading investment firm, EQT, acquired Banking Circle in 2018. This has significantly accelerated the company’s growth across current and new geographies. It has also been able to leverage the entire EQT platform, including deep TMT sector expertise, local presence, and EQT’s global network of industrial advisors. More importantly, Banking Circle has access to a deep liquidity pool, with rates sourced from the world’s market-makers. These highly competitive rates are provided at a pre-agreed margin through the Real-Time FX trading platform, the Banking Circle web platform, and the Banking Circle FX API. FX deals can be booked across pairs within Banking Circle’s 25 currencies as treasury movements or as outgoing payments via any of the account options available, including multi-currency IBAN accounts. “We give Financial Institutions a local presence in the markets they want to serve without them having to invest in a physical presence,” concludes Mr. Bertelsen.