International Business

Cross-Border Payments with FX Online

    • 12 January 2018- Mike Salerno is photographed at FNB tower.
    • Michael Salerno

      Vice President, International Banking
      Oct 14 2020

Bringing Transparency and Efficiency to Cross-Border Payments with FX Online

Author: Michael Salerno, Vice President, International Banking

International trade has escalated in recent years with cross border payments expected to reach $39 trillion by 2022, according to research conducted by the Fed. Despite the number of successful transactions, the Fed’s extensive research also reveals that the payment process is not always straightforward and may include high fees and lengthy processing times.

To improve the speed, efficiency and transparency of cross-border payments, FNBO is introducing an upgraded international payment system, FX Online. Here is how the new service benefits businesses of all sizes.

Challenges Associated with Cross-Border Payments

According to the study conducted by the Fed, the systemic problems associated with cross-border payments are difficult for a business to overcome on its own. With no end-to-end system in place for payments between countries, transaction fees can be high and delays are common.

The main issue that businesses face is lack of visibility. The Financial Stability Board indicates that most payments are sent through a correspondent banking network. This means that money leaves the business account and makes a stop at a correspondent bank. In a best-case scenario, the correspondent bank is located in the country where the receiving business is located. However, based on the relationships in place, the payment may actually need to route through more than one correspondent bank on its way to the receiving business.

As the payment makes its way through the system, many things can happen. Sometimes a bank will unexpectedly convert a payment into a local currency, for example, causing unexpected increases or decreases in the payment value. There may also be delays, as each correspondent bank needs time to process the payment.

Throughout this cycle, businesses have typically had little visibility into the payment trail and no way to track issues back to the source for resolution. Fortunately, FNBO will solve for this challenge with payment tracking using Swift gpi. In action, it’s as simple as following the trail of a UPS package from origin to destination. With detailed insights like these, SWIFT gpi members can see where added expenses and delays creep in to determine where to make changes for greater efficiency and lower costs.

Centralize and Streamline Payments with FX Online

FNBO has made enhancements to its multi-currency platform, FX Online, and integrated the payment process within the tool for a more seamless solution. Instead of having to work with multiple banks all over the world to manage your payments, you’re working with one domestic bank. Additionally, having a multi-currency account with FNBO provides the ability to hold a balance and convert at an advantageous exchange rate. A multi-currency account can also reduce foreign exchange conversion costs by netting payables and receivables in the same currency.

The FX Online portal is intuitive and easy to use. A homepage dashboard displays any items that need attention and you can enable email alerts so you are informed of any action items. The FX Online platform streamlines the payment process by prompting you for any country-specific information that is needed when entering a payment, which helps ensure the payment is received on time and reduces fees. The platform also allows for batch processing, custom reporting and can ingest multiple file formats for processing.

Most importantly, you have continued access to a dedicated banking team who is invested in your success. We can regularly review transactions for lost efficiencies and recommend changes that reduce the fees you may be encountering in the payment process. We will also work with you one-on-one to develop targeted strategies to improve the efficiency of your individual FX Online experience.

FNBO strives to be a valued partner, so we are pleased to introduce the greater speed and efficiency of FX Online in support of the businesses we serve. Interested in learning more about our international banking services or FX Online? Email us at


About the Author

Michael Salerno joined the bank in 2002 and currently leads the Global Banking team, which includes business development, international payments, foreign exchange risk management and trade finance solutions for corporate and correspondent banking customers. International issues can present challenges for organizations, and Michael enjoys creating simple and transparent solutions that reduce the complexity of doing business internationally.

The articles in this blog are for informational purposes only and not intended to provide specific advice or recommendations. When making decisions about your financial situation, consult a financial professional for advice. Articles are not regularly updated, and information may become outdated.