BUS2 531 Lecture Notes - Lecture 11: Remittance, Block Chain, Treasury Management
Document Summary
Co-founder of payment service company payment rails: payments landscape. Domestics bank transfers (ach, eft, sepa,neft, etc ) Credit/debit cards (prepaid, moneysend, visa direct, interac) How do credit card issuers (your bank) make money: interest for not paying bill on time, interchange: the merchant gets charged a fee for every transaction. How many banks do we have in canada: 30 tier-one banks small landscape for banking, 5 major ones. Who regulates banks in canada: osfi. Who regulates money services in canada: swift a messaging protocol. Originating bank - intermediary bank 1 intermediary bank 2 receiving bank. Cross-border payments: the challenge: payments executed through banks most typically require two transactions in two national payments systems, canadian dollars never really leaves the country. Payments settled via correspondent banking: the more direct the connection, the cheaper, the faster. Swift communicates, but it doesn"t touch money.
