Stephen Coburn, CEO – Avalo Lab
Jul 17, 2024
Can Your Bank Keep Up?
In today's hyperconnected economy, domestic and cross-border payments aren't just important – they're the lifeblood of global trade. But let's face it: managing these transactions is like trying to juggle while walking a tightrope. As a banking executive, you're probably all too familiar with the headaches.
The Cross-Border Payment Puzzle
Let’s take a closer look at cross-border payments. Picture this: A small tech firm in Boston is trying to pay its software developer in Medellin, Colombia. Simple, right? Not quite. That payment will ping-pong through a maze of banks, each taking a bite out of the sum, before it reaches its destination – if it doesn't get lost along the way.
The numbers tell a stark story:
· 72% of merchants report higher failure rates in cross-border transactions
· A staggering $3.8 billion in U.S. sales vanished due to failed payments in 2023
· 59% of corporate clients are frustrated over slow transaction speeds
· 93% of clients are demanding 24/7 international payment processing.
And let's not forget the regulatory minefield. One misstep in the complex world of AML and CTF laws, and you're looking at hefty fines and a PR nightmare.
A Resilient Market Demanding Better Solutions
Despite these challenges, cross-border trade is booming. Citi Bank reports that worldwide exports hit a record $31.3 trillion in 2022 – a 24% jump from pre-pandemic levels. This surge isn't just a recovery; it's a fundamental reshaping of global commerce.
However, a significant challenge remains: as trade flourishes, the cracks in our payment systems are widening. Every failed transaction, every delay, every compliance hiccup is a missed opportunity for growth.
Enter Avalo: Turning Challenges into Opportunities
At Avalo, we're not just observers of this problem – we're obsessed with solving it. Our platform is built from the ground up to be a strong painkiller, tackling both pain points and the core issues:
1. Compliance Made Simple: We've automated AML and CTF monitoring, making regulatory adherence a breeze, not a burden.
2. Fort Knox-Level Security: State-of-the-art encryption and end-to-end visibility mean you can sleep easy knowing your transactions are secure.
3. Speed Demons: We've optimized cross-border payments, slashing processing times and costs.
4. Customer Delight: Crystal-clear transparency and auditability keep you and your clients smiling.
5. Future-Proofed: With automation-driven process and machine learning at its core, our platform evolves faster and keeps up with the challenges it faces.
Real-World Impact
Imagine telling your U.S. client that their payment to the supplier in Colombia will arrive in hours, not days, with every cent accounted for. Picture the relief on your compliance and operations officer's face when they see our automated regulatory and security checks and controls in action. That's the Avalo difference.
The Path Forward
In this new era of global trade, cross-border payments aren't just a service – they're a strategic imperative. Banks that master this domain will thrive, becoming indispensable partners in their clients' global ambitions.
Ready to turn cross-border payments from a headache into your competitive edge? At Avalo, we're offering more than a platform; we're proposing a partnership to navigate the complexities of global finance together. Our team will work with you to align our solutions with your strategy, leveraging AI-driven processes and seamless API integration to ensure smooth implementation and maximize the benefits for your organization.
Reach out to me directly at stephenc@avalolabs.com or visit our website to connect with our dedicated team. Let's transform your transaction operations today.