How Link FX evolved its payment services with ClearBank
- Supporting a scaling fintech to efficiently and cost-effectively manage its own, and customers’ funds through the provision operating, client segregated and client money accounts, complemented by connectivity to UK payment schemes.
- Cost-effective access to FPS offering all the advantages of the UK’s real-time payments infrastructure to Link FX and its customers, without incurring the operational overheads of being a direct scheme member.
- Single API connectivity also provides customers with access to Bacs and CHAPS to deliver the widest range of payment options to suit the needs of its diverse customer base.
- Multi-currency accounts deliver the flexibility for Link FX and its customers to send and receive payments in 11 currencies.
Founded in 1995, Link FX started as a family-run money exchange business. In 2012 its senior management team acquired the business and ushered in a new era of growth and investment. Today it is a leading financial technology company providing cash management, payments, FX liquidity, and card-acquiring services to more than 2 million customers. As the UK’s largest independent provider of wholesale banknote solutions, Link FX supports thousands of retail locations nationwide.
As Link FX looked to enhance and expand its suite of services, it took the strategic decision to partner with a bank that could provide multiple account types, including Client Segregated and Client Money accounts. It also wanted to access the Faster Payment System (FPS) for itself and its customers, with the flexibility to access Bacs and CHAPS if required. That approach would give it the ability to focus on scaling its business and invest in the areas that would give it a competitive advantage.
While many potential partners offered agency banking services, including payment scheme connectivity and the account types it needed one firm stood out: ClearBank.
“ClearBank has a reputation for high quality services and a track record of delivery. When they say faster payments are processed in seconds, they mean it. It had the experience we wanted, married to a collaborative, client-focused approach that we appreciated,”
ClearBank’s agency banking services provide Link FX with Operating accounts, for holding its own funds and Customer Segregated accounts that sit alongside but maintain and safeguard the customers' funds away from its own.
ClearBank is also providing Link FX with Client Money accounts that allow it to receive and hold money on behalf of customers in accordance with FCA’s requirements. By removing manual processes through the automated reconciliation and allocation of funds to the right account, ClearBank is supporting Link FX to improve the scalability of its service.
Link FX appreciated that the account set-up and payment scheme testing was swiftly completed, giving the firm confidence it could launch its services quickly and securely.
“We appreciate working with ClearBank because we can rely on their services. This has enabled us to build innovative solutions such as our new Retail365™ digital cash management service for retailers in partnership with logistics and supply chain businesses.”
Through the ClearBank partnership, Link FX can provide its customers an account and the ability to send and receive funds through connectivity to Faster Payments (FPS), Bacs and CHAPS. With FPS, customers funds are credited to their account in real-time and as ClearBank’s platform is available 24/7, customers can move money whenever they want. As a result, it can offer the widest range of payment options to suit the needs of its customers through fully segregated client accounts.
“Building our services with industry-leading partners is the best way to scale, in the knowledge that we’re being supported by the very best in the business," Durrani says. “ClearBank has provided us with the services that we need to help us, and our customers, grow and prosper.”
Following the successful roll out of multiple account services with ClearBank agency banking, Link FX enhanced its domestic payments with ClearBank’s multi-currency payments. Firms have tended to shy away from these due to the cost of integrating and implementing, lack of fee transparency, or a lack of the required currency pairings. ClearBank addresses this straightforward access to send and receive payments in real-time across 11 currencies.
Link FX can open multi-currency accounts, hold balances and through the API initiate and receive international payments for its customers. It also provides the firm with the ability to view all inbound and outbound transactions, account balances and the status of outbound payments.
The ability to support these payments without the cost and complexity of needing a standalone provider of multi-currency services was crucial to Link FX as it continues to evolve its customer offerings.
“Partnering with ClearBank was quite simply the easiest decision we made,” Durrani explains. “They worked closely with us from day one to bring our FX and payments platform to market and their relentless focus on financial resilience and customer service enables us to innovate and develop new products with real confidence for the future.”
