PNC Bank to Offer FX Transactions Through Fundtech’s US Wiring Solution

Bank transactions solutions provider, Fundtech, has announced that PNC Bank will begin to offer FX transaction processing through Fundtech’s US

fundtech logoBank transactions solutions provider, Fundtech, has announced that PNC Bank will begin to offer FX transaction processing through Fundtech’s US Federal Wire System. The partnership will allow PNC Bank to provide real time FX payment processing.

While spreads and costs have fallen dramatically over the last few years in traded FX products such as for spot, swaps, and futures, the physical payment processing industry continues to be beset with large fees and poor exchange rates. Specifically in the US where foreign currencies compose a small proportion of domestic business, fees charged at banks to handle FX payments are a high margin business. To provide more cost effective solutions, a growing group of firms have targeted the FX bank wire business. These firms, such as OzForex and Technocash act as a financial intermediary and provide cheap B2B cross currency transfers as compared to typical bank to bank solutions. Therefore, while probably not the biggest piece of news on the day, PNC Bank’s initiation of providing its clients FX transactions through Fundtech’s bank wire solutions, shows that we may begin to see banks becoming more aggressive in regards to pricing their foreign currency products.

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In our Q4 Forex Industry Report, Forex Magnates provided a detailed account of payment solutions in regards to credit cards, real time bank transfers, and e-wallets.

Fundtech’s US Wire System Adds Seamless FX Transactions through PNC Bank

February 12, 2013

Real-time FX Payment Processing Will Make Banks Competitive With Up-To-The-Minute Exchange Pricing

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Fundtech, a market leader in global transaction banking solutions, today announced that PNC will offer seamless foreign exchange (FX) transaction processing through Fundtech’s United States (US) federal wire system. Banks using Fundtech’s PAYplus USA will now be able to offer their commercial clients the convenience of integrated real-time FX payment processing using PNC Bank as their correspondent.

By consolidating both domestic and foreign payments processing into a single workflow, banks and their clients will gain greater control. Investigations and research will be streamlined, taking less time and providing more thorough results.

Banks and their clients will receive dynamic real-time FX rates from PNC that are competitive with up-to-the-minute exchange pricing. Confirmations and Regulation E (via the Electronic Fund Transfer Act) disclosures will be provided through the integrated systems, making it easier for financial institutions to comply with these regulatory changes.

Commenting on the agreement, Gus Karris, Managing Director of Foreign Exchange at PNC, states: “Integrating our real-time FX processing with Fundtech’s PAYplus USA is a win-win for both companies and an important benefit to banks that use the combined system. PNC’s global reach, competitive FX rates and dedicated customer service ensure that banks using the system will receive world-class service.”

Also commenting on the agreement, Mary Ellen Putnam, Executive Vice President of Fundtech, said: “As global trade continues to grow in importance among businesses of all sizes in the US, the need for foreign transactions is also expanding. Integrating PNC’s FX service with PAYplus USA ensures that banks of all sizes can offer their clients a convenient, reliable and competitively priced FX services.”

About Fundtech
Fundtech offers a comprehensive line of transaction banking solutions to banks and corporations of all sizes around the world. As a strategic supplier, our clients benefit from lower operating costs and an enhanced end-user experience through our integrated and feature-rich solutions. Our major product lines are: global and regional payments, corporate cash and liquidity management, financial messaging, electronic invoice presentment, supply chain financing, remote deposit capture, merchant services, credit card gateway and mobile banking products. Fundtech offers its software through a traditional software license and a Software-as-a-Service (SaaS) contract. We operate Fundtech Connect, one of the world’s largest services bureaus that addresses the unique needs of the financial services industry. Thousands of financial institutions and companies worldwide rely on Fundtech’s innovation to improve operational efficiency, increase revenues, and provide greater competitiveness through business-to-business services. Founded in 1993, Fundtech was acquired in 2011 by GTCR, a Chicago-based private equity firm. For more information please visit www.fundtech.com

About PNC Financial Services Group
PNC is a registered mark of the PNC Financial Services Group, Inc. (PNC) (www.pnc.com) which is one of the nation’s largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. Banking and lending products and services and bank deposit products and investment and fiduciary services are provided by PNC Bank, National Association, a wholly owned subsidiary of PNC and Member FDIC. Certain fiduciary and agency services are provided by PNC Delaware Trust Company. Capital markets activities are conducted by PNC through its subsidiaries PNC Bank, National Association and PNC Capital Markets LLC. Services such as public finance advisory services, securities underwriting, and securities sales and trading are provided by PNC Capital Markets LLC. PNC Capital Markets LLC is a registered broker-dealer and member of FINRA and SIPIC. Foreign exchange and derivative products are obligations of PNC Bank, National Association. PNC does not provide legal, tax or accounting advice. Lending products and services, as well as certain other banking products and services, require credit approval.

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