Overview

Correspondent Banking

To succeed in today's market, financial institutions must be able to transact customer funds securely, seamlessly and cost efficiently.  Foreign banks are often limited to transacting with lightly regulated, unsecure, third-party non-bank financial institutions to process U.S. Dollar payments.  Payments through these nested corridors often take days or weeks to process, costing tens or hundreds of dollars per transaction.  Customer funds are misplaced, and recourse is limited.

Stern Bank attempts to fill a segment of this payment void by offering direct USD correspondent services to banks and financial institutions in Latin America, the Caribbean and Western Europe.  Payments through Stern are processed efficiently through the New York Federal Reserve via Fedwire and ACH.

Stern’s Team understands the importance of maintaining an efficient, secure and compliant correspondent banking program.  To this end, the Onboarding Department is selective about adding respondents to its portfolio.  Compliance does not end at onboarding but is an integral component to the ongoing relationship.

If your financial institution is considering opening a U.S. Dollar correspondent account with Stern Bank, please contact us at info@sternbank.com.

Stern’s Approach with Local Regulators and Central Banks

When entering new jurisdictions, Stern often engages with local regulators and central banks as part of the development of its correspondent banking business.  Local regulators assist Stern with real time market data, ongoing evaluations of potential risk and often act as a referral source for new business opportunities.

Stern’s Correspondent Network Today

Today, Stern provides correspondent banking to banks and financial institutions in over fifteen countries throughout Latin America, the Caribbean and Western Europe.  As the networks grows, respondents are able take advantage of the accretive benefits of operating in Stern’s payment ecosystem.