Private market funds operating across jurisdictions need to be able to move funds fast and without manual intervention across their own entities and with third parties. Whether funding an investment, collecting capital calls, paying service providers, or distributing proceeds, delays in payments can create friction with investors, asset owners, and other counterparties.
This blog outlines ways in which Ebury supports fund CFOs with faster reconciliation of incoming payments, faster payout settlement times, and increased visibility of payment statuses.
Scaling Reconciliation with Ebury IBANs
Financial institutions receive a high volume of incoming payments on behalf of clients which needs to be reconciled to their respective client accounts. Due to different usage of standards globally and across payment systems reconciliation can be error prone and slow if not set up for scale. Ebury is able to offer instant reconciliation on the vast majority of incoming payments by issuing its own IBAN accounts, by being connected to the main payment networks, and by leveraging machine learning to increase its share of auto reconciled incoming payments.
From Days to Hours: Cross border In-Country payouts
Payments sent to a cross border beneficiary are normally routed through a set of intermediary correspondent banks before a payment arrives at a beneficiary. Ebury offers domestic in-country payout on its own infrastructure in most jurisdictions, drastically reducing settlement times for cross border payments. For example a Luxembourg based PE fund that sends a USD payment from Luxembourg to the US will typically experience a same day delivery with Ebury’s local payouts but might take 2 days to settle if sent through the traditional correspondent network.
Real-Time Clarity: Eliminate the "Where’s My Payment?" Pain Point
Besides delays in payments one of the most common operational pain points for fund CFOs is the lack of real-time clarity on payment statuses and cash positions. Chasing payment confirmations, understanding where a payment is held, and reconciling payments can make treasury operations time consuming and painful. Ebury’s platform provides real time visibility on incoming payments and balances held. Outgoing payments can be tracked with a SWIFT GPI tracker to see where a payment is directly from Ebury’s platform. And payment confirmations (pacs.008, former MT103) can be shared automatically after payment execution.
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