Challenges
While the Lao Kip serves as the primary official currency, transactions are conducted within a multi-currency environment where both the US Dollar and Thai Baht are widely accepted in retail and corporate transactions. Consequently, BIC Bank Laos capitalises on its correspondent banking relationships to facilitate international remittances in USD or other currencies globally. This reliance has introduced limitations and constraints within their cross-border payment solutions.
- Lack of visibility: Intricate routing across various banks makes it difficult to predict costs, track payments, and estimate turnaround times.
- Liquidity Management: The fragmentation of accounts and limited visibility posed challenges in optimising liquidity.
- Unpredictability: Lack of clarity in the final amount received by the beneficiary, timing, or funds delivery at origination.
- Turnaround time: Cross-border transactions typically took between three and five business days.*
- Fees: Additional costs were incurred at each step of the payment transfer process due to charges from correspondent banks and third-party services.
The challenges faced highlighted the necessity for BIC Bank Laos to adopt a more streamlined payment solution to enhance the bank’s cross-border transactions and elevate the remittance experience of their customers.
*Accenture research, estimates, and analysis based on Juniper Research market sizing, Banking Circle; Glenbrook-Earthport, McKinsey; and SWIFT data.
Objectives
- Enhance visibility and predictability in cross-border transactions
- Optimise liquidity management in an environment of account fragmentation
- Reduce turnaround time for cross-border transactions
- Minimise costs associated with fees from correspondent banks
Download the cross-border payments customer success story to read about the outcomes and benefits our client was able to achieve.
"Our partnership with Bottomline has enabled us to offer our customers the most innovative and technologically advanced payment solutions available. This includes the ability to send fast and efficient cross-border payments, without the need for an intermediary bank. We are proud to be the first bank in Laos to implement Visa B2B Connect, which has revolutionised the way businesses make cross-border payments."
Felix D. Francis, General Manager, Banking Operations
