How to Improve Straight-Through Processing of Payments


In the digital age, there is increasing demand for fast, simple, error-free payments. Yet friction in the payments process often stands in the way of achieving the ease and speed consumers now expect.

Organisations that set up, route and process payments must improve straight-through processing in order to keep up with their increasingly digital customer base. Payments should arrive quickly at the correct beneficiary account with minimal interaction from the customer initiating the payment and with no manual intervention from the company processing the payment.

What are the barriers to straight-through processing?

The following issues can cause payments to be delayed or fail, resulting in bank fines, manual work, and a poor customer experience:

  • Human error in payments data entry
  • Outdated beneficiary account details
  • Insufficient information, such as missing correspondent bank details
  • Changing payment rules and regulations

Human error in data entry accounts for a large proportion of errors. In fact, 9% of payments entered are subject to human error. In addition, up to 35% of payments data can go out of data each year.

Why do Payments Fail?

How to improve straight-through processing

The key to increasing your straight-through processing rate is to ensure that your customers provide correct and complete information. This will help you process payments automatically, without any manual work, and improve your customer experience.

Is the beneficiary data you receive automatically validated and enriched before you process payments? Or is the payment validation and enrichment process manual, and done after the data has been collected and your customer is no longer engaged?

Taking a manual approach is not only time-consuming, but it does not guarantee you catch all the errors. Bank reference data can very quickly become out of date and may contain errors. This all means a manual approach becomes a barrier to instant payments.

Payments data validation and enrichment can greatly improve your straight-through processing rates. Bankers Almanac APIs for payments validate payments data in real-time as your customers type using up-to-date payment and compliance rules for over 180 countries.

Our services can instantly validate international routing numbers such as IBAN, as well as domestic routing numbers like sort codes. In addition, our services automatically add information such as full bank details and standard settlement instructions. This helps eliminate the cost of failed payments, and ensures you achieve high straight-through processing rates.

“We saw the immediate benefit of Bankers Almanac Validate and how easy it was to integrate into our digital platform. We provide clients with a superior, cost efficient experience when making FX and international payments. We selected this world class validation solution because it enables intelligent, integrated, and seamless processes for businesses around FX and international payments. Our clients will benefit from seamless transactions as a result. We went live with Bankers Almanac Validate painlessly and as part of a rapid roll out,” CEO, a foreign exchange company.

Bankers Almanac APIs for payments help customers to:

  • Eliminate payment errors
  • Reduce the costs of fixing failed payments
  • Improve straight-through processing rates
  • Stay compliant with global payment rules

Bankers Almanac APIs for payments can be easily integrated into existing payment systems to automatically improve straight-through processing rates and improve the customer experience.

“Bankers Almanac Validate API solution helps us give our clients a seamless payment experience and keeps payment errors to a minimum,” CEO, a payment service provider.

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