US bank Wells Fargo is teaming with banking technology vendor S1 Corporation to introduce a white label online foreign exchange service.
Wells Fargo says the service will enable banks, regardless of size, to offer a full range of online FX services under their own brand. The bank will provide real-time exchange rates, manage trade execution and initiate settlement instructions on behalf of its correspondent bank customers, who in turn will provide FX services to their business customers. Although Wells Fargo will handle all aspects of payment execution, the service will appear under the brand name of the correspondent bank.
The new system will be delivered as a module integrated with S1's Business Banking product and is based on Wells Fargo's Online Foreign Exchange application, which enables banks to buy or sell currencies on both a spot and forward basis.
An interface developed by S1 enables customers to initiate FX transactions from their own workstations. The service will also connect to Wells Fargo's suite of online business-to-business financial services for e-marketplace members, WellsXchange.
Gregg Napoli, senior vice president, Wells Fargo Foreign Exchange Services, says: "This is a winning solution for banks to meet their customers' needs and generate revenue, because they can leverage Wells Fargo's existing foreign exchange trading and payment execution infrastructure, as well as benefit from the convenience and efficiency of having a foreign exchange module seamlessly integrated with the S1 Business Banking application."