ClearBank partners with JP Morgan to offer multi-currency accounts via API
As a possible no-deal Brexit approaches, UK-based players in commercial payments are teaming up with global banking giants in order to compete in multi-currency accounts. Consider ClearBank, which styles itself as a cloud-based clearing bank, and is authorised by the UK Financial Conduct Authority and Prudential Regulatory Authority to accept consumer and business deposits.
At present, ClearBank doesn’t have any passporting rights to offer services in the EU, unlike competitors such as TransferWise and Currency Cloud. But by means of a partnership with JP Morgan, ClearBank, has introduced multi-currency bank accounts via an Application Programming Interface (API). According to the company’s press note, it is the first UK clearing bank to offer this.
EU-authorised JP Morgan will provide cash management services to ClearBank with providing access to multiple currencies, pricing and execution which will all happen through an API. However, client funds will be held by London-based ClearBank. JP Morgan will also provide FX liquidity to ClearBank which will allow its customers to have access to multiple currencies.
ClearBank, which was founded in 2017 by Czech-owned private equity firm PPF Group, will offer more than 30 multi-currency bank accounts in the fourth quarter of 2020, providing financial institution customers with the ability to move funds between accounts in real-time. According to ClearBank, this will increase liquidity and improve visibility into cash flows as the need to transfer funds to third party accounts is removed.
Commenting on the initiative, ClearBank Chief Customer Officer Simon Jones said, “Before, there were only two options for firms looking to help their customers hold and move multiple currencies. One, obtain multi-currency capabilities through an electronic money institution but miss out on the functionality of a fully-fledged bank account, or two, work with an established correspondent bank that isn’t API-fluent and lose time-to-market through arduous onboarding processes.”
In July this year, Australia-headquartered payments provider OFX Group had introduced a multi-currency account for businesses to help them manage international cash flow. This year ClearBank partnered with Viva Wallet and Temenos to provide them with cloud-based payments services.