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**Can fintechs replace correspondent banking?**
Inpay
# Can fintechs replace correspondent banking?
26 May 2026
**_We examine whether fintech cross-border networks can succeed where correspondent banking is failing._**
Cross-border payments are broken. They’re often slow, unreliable and costly. When payments get delayed, blocked or lost, it’s hard to track them or know where to turn for advice.
Depending on their nature of business or transfer corridors, firms also face losing access to banking services altogether, if they’re ‘de-risked’ or off-boarded by their bank.
Enter the fintechs. These new financial technology start-ups are chipping away at some of correspondent banking’s biggest pain points. They’re promising faster, cheaper and more transparent international money movement.
But how much is hype? And how much is really happening?
#### **Why do international payments continue to be a problem?**
The problems of international payments – slow settlement, uncertainty, high fees and limited transparency – are not new. Many are simply inherent to correspondent banking,
When banks link their different domestic systems to process international payments, they act as intermediaries for one another. They pass payment messages between the sending and receiving banks, sometimes in long chains.
That’s what Swift does. It’s a messaging system for international bank payments connecting around 11,500 banks, financial institutions and others in 200+ countries.
But in truth, international wires are a workaround. It’s still hard to guarantee execution times, track payments or predict fees for international payments.
This is a [$195 trillion problem](https://www.jpmorgan.com/insights/payments/fx-cross-border/2025-trends-for-financial-institutions) annually. That’s the estimated total of cross-border payments in 2024.
With the equivalent of [world GDP moved across SWIFT](https://www.swift.com/news-events/news/future-proofing-financial-ecosystem) international correspondent banking rails every three days, maybe it’s time for a new solution to old problems?
#### **What are fintechs?**
Financial technology start-ups, or fintechs, have been variously described as an idea, a movement, a collection of companies and a software. Generally, the aim of fintech is to use technology to make financial services better.
Better in this context equals faster, cheaper and more efficient. But also more digital, personalized and intelligent.
Given it’s such an intractable problem, fintechs have been quick to capitalize on technology to alleviate some of the pain points of international payments.
Platforms using digital wallets, API-based payments, and even blockchain rails can move money faster and cheaper across borders.
In corridors where traditional banks have pulled out, fintechs often step in to keep remittances and trade payments flowing.
For example, Revolut is an app-based neobank aiming to simplify all things money. Its 70+ million personal and 800,000 business customers worldwide can spend, save, invest, borrow and more in just a few taps.
Wise, formerly TransferWise, was launched in 2011 to make international money transfers cheap, fair and simple. Since then, it’s added a multi-currency account, debit card and business account, and listed on both the UK and US stock exchanges.
#### **What are the pros and cons of fintechs relative to banks?**
Fintech can help address some of the key pain points of correspondent banking. But they’re unlikely to be the whole solution or replace correspondent banking altogether.
Fintechs may well have new brands, untainted by the 2008 financial crisis, new technology and new mentalities. Yet banks have brand recognition, money and customers.
Being regulated is a burden for banks, but it creates consumer confidence. A long history brings with it legacy systems, but also builds trusted brands and provides historic data, scale, a banking licence and a head start in compliance activities.
While fintechs have advantages relative to banks, they also have disadvantages. So, it’s become less winner-takes-all and more a race to the middle.
#### **What are the barriers to change?**
Fixing correspondent banking is hard due to interoperability. Individual banks cannot change things themselves, because they’re part of a global system.
What’s more, banks have invested so much in infrastructure, processes and the status quo, they don’t want to disrupt or cannibalise the business they have. Nor is there an explicit management or shareholder appetite to do so.
On the other hand, fintechs may still rely on bank accounts to move and settle funds internationally. So, they don’t fully eliminate the need for correspondent banking relationships.
Moreover, correspondent banking isn’t just about moving money. It’s also about liquidity provision, foreign exchange, regulatory compliance and access to the global financial system.
#### **What does the future look like for fintechs in cross-border money movement?**
The future is one of collaboration and co-petition between fintechs and banks, rather than one of rip and replace.
Fintech are building their networks and global coverage, while still plugging into the traditional banking system at key points.
A successful collaboration may involve a degree of specialization. For example, a local bank may specialize in domestic everyday banking, saving and mortgage products.
Whereas handling complex, international payments with full transparency is where a fintech like Inpay makes a difference.
Specialists know what documentation is required, the questions likely to be asked, and the quickest way to route payments to pre-empt problems.
It’s a different approach and skillset to a bank, who wouldn’t necessarily support and guide customers to that extent.
##### **About Inpay**
Inpay is a cross-border payments company, connecting businesses and communities to a global banking network that helps them thrive.
Since 2008, we’ve been helping financial institutions, iGaming operators, corporates, NGOs and others move money to the right places quickly, easily and securely.
Our smart technology, innovative products, robust compliance and in-house experts from 45+ countries solve complex payment challenges with an industry-leading 99.6% transaction success rate.
For more information, contact us at [sales@inpay.com](mailto:sales@inpay.com). We’d love to hear from you.
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