Nexus the next big thing in Banking

In the age of smartphones, worldwide wire transfers belong in money museums. In more than 60 nations, including many agricultural countries, it has become amazingly simple to send funds in real time to someone else over the internet more than their smart phone number.

Nonetheless, 24/7 fast payments system, a technology that is beginning to function pretty well for small value transaction in domestic situations, have counterpart when money has to jump over national borders.

For a bank to move funds from one country to another, it needs to either have a presence in both, or keep idle funds to keep up with “correspondent” associations with other financial institutions in the middle. Payments require something like a couple of hours, and sometimes get stuck for small typo in the beneficiary name, address or account number. Which is the point at which we wish we could simply whip out our phones and pay an individual or a merchant in another part of the world on the spot by using just their phone number.

That’s why in the next few years, we’ll probably hear about Nexus, currently a blueprint created by the Bank for international settlements innovation hub.