Why trust is so much more than a word for banks

Banks’ reputations are built on a foundation of trust - the critical underpinning of every successful relationship between a financial institution and its customers. Trust is even more important in a constantly evolving global payments landscape where banks’ customers need confidence that their money is secure, and processes are transparent.

A key reason for the heightened importance of trust is because international payments are more complex than domestic transactions; involving multiple jurisdictions, currencies, and regulatory frameworks. This significantly increases the potential for errors and delays. Cross-border transactions often involve larger sums and are more challenging to reverse, making the consequences of mistakes or fraud more severe. Moreover, cross-border payments face intensified scrutiny from regulators who require impeccable compliance records from all parties involved.

Cross-border transactions are a considerable technological challenge, as integrating different countries' payment systems and technologies requires robust, reliable solutions to ensure streamlined transactions.

All these factors underline that the choice of a payment provider is so much more than one of improving operational efficiency. It’s a critical decision that can significantly impact a bank's standing in the international financial community. To get that choice right, it’s important that banks ensure that their payment provider has all the three foundational elements outlined below.

Ensuring cross-border transactions are secure

With online fraud projected to increase by 141% from $44bn in 2024 to $107bn in 2029,¹ banks need to rely on their cross-border payment provider to help mitigate fraud, be on top of cyber security threats, and anticipate data breaches. This requires investment in real-time fraud prevention systems and leveraging innovative cybersecurity solutions to anticipate and counteract threats. Payment providers should have established robust security measures to protect critical financial information and equip banks with resources to bolster their own defenses. Regular updates and enhancements to security protocols are vital to address new vulnerabilities as they arise. With these comprehensive security offerings, it can help improve a bank’s current risk and compliance efforts and can help satisfy consumers’ concern for the security of their cross-border payments.

Trusting them with your reputation and customer satisfaction

With 80% of senders saying it’s very important to use a trusted payment option backed by a globally recognized payment brand,² banks’ payment providers are critical to ensuring they keep their hard-won reputations. To achieve this, banks should carefully select providers with proven track records of reliability and security, conducting thorough due diligence. Ideal providers offer straightforward integration, robust fraud prevention, and extensive global networks for efficient cross-border transactions, while demonstrating a commitment to continuous improvement and innovation. Partnering with providers that negatively impact a bank's efficiency, security, or global reach through things such as operational disruptions, increased complexity, or data quality issues can damage bank-client relationships. By choosing the right provider and fostering strong partnerships, banks can enhance their cross-border payment offerings while safeguarding their reputation and customer trust.

Being confident they support your compliance measures

When selecting a cross-border payments provider, banks expect any partners they engage with to be in line with, and preferably ahead of, compliance requirements. While banks retain ultimate responsibility for their regulatory compliance, providers should help alleviate internal compliance measures and support banks in maintaining compliance standards. Banks should seek providers with a proven history of regulatory compliance across multiple jurisdictions and a proactive approach to new regulations. Ideal providers should offer comprehensive compliance solutions, including robust Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, sanctions screening, and transaction monitoring capabilities. By partnering with a provider who excels in these areas, banks can rely on them to help navigate the complex and evolving landscape of regulations and enhance their overall risk management.

The trio of security, reputation and compliance is not easy to find

Banks can often face challenges in finding payment providers that excel in three foundational areas. A payment provider might have exceptional fraud measures in place and a great overall reputation but may not have the regulatory measures needed to meet a new market's requirements. Navigating the complex, ever-changing landscape of global regulations is a daunting challenge, with providers having to understand and adapt quickly to new rules. Alternatively, a potential payment provider may have compliance measures which meet every standard, but their fraud technology isn't robust. It can be difficult to stay ahead of the increasing demand for innovation and improved services as customer expectations continue to rise and new competitors enter the market. It takes a lot to excel in all three areas simultaneously, so choosing a payment provider who does so can be a challenge.

The choice of cross-border payment provider impacts a bank's ability to build excellent international payment experiences accepted worldwide. This is key to tapping into new global markets. So, where can banks turn for a reliable global payments solution?

Trust Visa Direct – a cross-border money movement network

A Visa Direct partnership with commercial and retail banks helps enable the secure, fast and efficient cross-border money movement solution that banks and their customers are looking for – all through a single provider.

Reliable fraud solutions

With over 60 years’ global payments expertise, Visa has a strong reputation for security and reliability which has made it one of the world’s most respected financial services brands. Visa Direct is relentlessly innovating to deliver trusted solutions so banks can develop secure and personalized products and services.

Visa has invested over $10 billion³ into new fraud and security initiatives across its network. These initiatives include multi-layered cybersecurity, AI, and analytics to enhance the security of digital transactions. Our Visa Account Name Inquiry (ANI) service and AI-powered fraud risk management solutions, such as Visa Advanced Authorization (VAA), help banks and their customers keep one step ahead of fraud.

The reassurance of 99.99% service availability

This high benchmark means that banks can reliably make international payments, convert currencies, and manage their accounts at any time with minimal disruptions. This high availability can reduce the risk of transaction delays or failures that could impact on their business operations and revenue.

Be your customers’ first choice with Visa Direct

For retail banks providing a consistent, secure, reliable customer experience has never been more important with, on average, consumers using up to five different methods to make cross-border payments and 66% actively seeking a single ‘go-to’ provider.⁴ What’s more, 45% of consumers said they prefer to use traditional banks to transfer their cross-border payments.⁴ Although they are using multiple providers now, seeking speed, value and a personalized customer experience, there is a real window of opportunity here for banks to be the first choice for their customers by doubling down on the trust and security they already provide, combined with innovation.

Visa Direct is a bank’s trusted partner every step of the way; from getting the right solution and implementing it, to ongoing growth and strategic vision. Collaborating exclusively with our partners, rather than competing for clients, to help them achieve their growth ambitions. Reach 195+ countries, access 150+ currencies and access 11 billion cards, wallets and accounts – all through a single provider. Visa Direct is focused on getting you where you want to be, wherever you, and your customers are, in the world.

Visa Direct. Move money your way.

To learn more about money movement, visit visa.com/visadirect

Sources

1. Global Merchant Fraud Prevention 2024-2029 Market Data and Forecasts, Juniper, October 2024.
2. Visa Direct Remittance, Market Size and Consumer Insights Research, Visa Commissioned research by Payments and Commerce Market.
3. Visa’s Growing Services Business Infused with New AI-Powered Products.
4. Unlocking the future: Banking on cross-border payment habits, Visa/IPSOS whitepaper 2024.