Banking-as-a-Service · Use case

Offer multi-currency accounts and FX

Short answer

Multi-currency accounts let customers hold, convert and pay in several currencies. The BaaS provider supplies balances per currency — ideally with local receiving details — plus FX conversion and international rails. Compare on currency coverage, local details and the all-in FX cost.

What this use case is

One account relationship with balances in EUR, GBP, USD and other currencies, used to get paid and pay abroad without separate banks per country.

Who builds this

SME banking
Exporters and importers
Freelancer platforms
Travel
ERP and accounting tools

What your customer sees

  1. 1Opens an account
  2. 2Sees balances per currency
  3. 3Shares local account details
  4. 4Converts at a quoted rate
  5. 5Pays suppliers abroad

How Banking-as-a-Service solves it

1

Account opened with balances per currency

Account opened with balances per currency

2

Local receiving details issued where the provider supports them

Local receiving details issued where the provider supports them

3

Incoming payments credited to the matching currency balance

Incoming payments credited to the matching currency balance

4

Conversion at a quoted, optionally locked rate

Conversion at a quoted, optionally locked rate

5

Outgoing payments via local rails or SWIFT

Outgoing payments via local rails or SWIFT

6

Statements per currency

Statements per currency

Want to have

  1. Required currency list
  2. Local receiving details for key currencies
  3. FX quotes and rate lock
  4. Transparent markup over a stated reference rate
  5. International payouts
  6. Sanctions screening

Optional

  1. Batch conversions
  2. Multi-entity accounts

Design decisions

One provider or two

BaaS with FX
BaaS plus a specialist FX provider

simplicity versus price and currency coverage

Your FX margin

Pass-through
Your markup

revenue versus transparency to customers

Payout route

Local rails
SWIFT

cost and speed versus reach

What to put in your RFP

Currencies

  • holding, receiving, paying — by customer type

Account details

  • local details per currency, naming on accounts

FX

  • pricing model, reference rate, rate lock, limits

Payouts

  • corridors, rails, fees

Commercials

  • FX margin, account and transaction fees
Add these to an RFP

How to evaluate providers for this use case

  1. 1Currency coverage for your customers
  2. 2Whether local details are truly local
  3. 3All-in FX cost at your volume
  4. 4Payout reach and speed

Pitfalls

  • Hidden FX spread
  • "Local details" that are pooled with unclear naming
  • Hedging products needing different permissions
  • Coverage that differs between consumer and business customers

What providers will ask you

  1. Currencies and corridors
  2. Expected conversion volumes
  3. Customer types
  4. Countries of counterparties

Other Finlane categories that cover parts of this

This use case is solved mainly with Banking-as-a-Service. These categories cover specific parts of it and can be tendered alongside it.

Frequently asked questions

Questions for this use case are covered in the category guide.

Solving this with another category instead? See Offer multi-currency accounts to customers

Other Banking-as-a-Service use cases

Scope offer multi-currency accounts and FX with Banking-as-a-Service providers

Scope this use case