The bilateral blockchain solution was launched in December 2021, and it now covers five main currencies, namely USD, GBP, EUR, CAD, and CNH. According to financemagnates.com, Wells Fargo and HSBC settled over USD 200 billion in FX transactions in the past 11 months, and the two companies plan to add even more currencies to their distributed ledger solution.
Wells Fargo representatives cited by finance.yahoo.com explained that by including CNH, the platform with benefit from a risk reduction in the payment settlement process. As far as the collaboration with HSBC is concerned, they revealed that it helped them to pursue innovative technologies and to apply them in a way that improved their existing infrastructure.
The solution relies on a shared private ledger that’s managed by teams at HSBC and Wells Fargo. The ledger offers full visibility to each of the parties to the relevant FX settlement. The platform is governed under the framework of an agreed rulebook that facilitates netting and settlement of FX transactions between HSBC and Wells Fargo in GBP, EUR, CAD, USD and now CNH.
Those who participate in the network are in the know only about transactions in which they are a counterparty. The platform runs on Baton Systems’ proprietary CORE distributed ledger technology and is governed by the Baton rulebook.
In November 2022, Wells Fargo launched a small dollar loan to help customers meet short-term cash needs and avoid potential overdrafts. The product is named Flex Loan and offers either USD 250 or USD 500 with a flat fee of USD 12 or USD 20, respectively.
Company officials stated that what makes Flex Loan different from other payment options is its certainty of approval for eligible customers. They also highlighted the simplicity of obtaining funds, as well as the clarity around how much it will cost to pay for things such as holiday gifts or travel expenses.
Flex Loan represents an addition to three other options announced by Wells Fargo in January 2022 that were created to help customers better manage their short-term cash requirements. These three options are named Early Pay Day, Extra Day Grace Period, and Clear Access Banking. Early Pay Day allows Wells Fargo clients to access eligible direct deposits up to two days in advance. Extra Day Grace Period offers an extra business day to make deposits to avoid overdraft fees while Clear Access Banking offers customers a checkless banking account without any overdraft fees.
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