Guides

Financial Institutions

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Nium’s suite of APIs empowers Financial Institutions to innovate and streamline their operations and services. Our solutions cater to various aspects of finance management, helping Financial Institutions ensure efficient and secure transactions for their customers.

Financial Institutions (FIs) are entities that the applicable government’s regulatory authority licenses to provide regulated financial services within the jurisdiction of the license.

This guide highlights key Nium capabilities that empower Financial Institutions. Please note:

  • Our Financial Institution offering is available only to entities with valid licenses and registrations to provide regulated financial services in the jurisdictions where their services are offered.
  • Nium provides services directly to the Financial Institution, which then uses Nium's services to move and manage customer funds. Nium does not provide services to the Financial Institution's underlying customers.

If you have any questions, reach out to:

Nium provides services that enable Financial Institutions to serve their customers within their licensed jurisdictions.

Additionally, Nium generally does not support FIs operating on a cross-border basis, including “offshore banks” regulated in country A that provide services to residents in country B.

Compliance Requirements

Compliance requirements for Financial Institutions partnering with Nium vary by country, depending on factors like payment corridors and transaction volumes.

Additionally, every Financial Institution using Nium worldwide must comply with at least the following:

Funds Flow

Here are some examples of how FIs use Nium to move funds for customers.

Example 1: Like-for-Like Payments

  1. The FI funds its Nium account in the same currency.
  2. The FI uses its Nium account to make payouts in the same currency.
  3. The Nium platform pays the beneficiaries directly in the same currency.

Example 2: Bulk FX Payments

  1. The FI funds its Nium account in one currency.
  2. The FI converts funds in bulk to the destination currency.
  3. The FI makes multiple payouts in the destination currency through Nium.

Example 3: Transaction-Level FX Payments

  1. The FI funds its Nium account in one currency.
  2. The FI initiates individual payments, converting each transaction to the recipient’s currency.
  3. Nium processes the foreign exchange (FX) conversion and pays the recipient directly.

Example 4: Lock & Hold FX Payments

  1. The FI books FX deals and funds its Nium account before the settlement date.
  2. After the settlement date, the FI converts funds in bulk to the destination currency.
  3. The FI makes multiple payouts in the destination currency through Nium.

Key Features

The following breaks down the different Nium features Financial Institutions use to manage funds for their customers.

Funding

Clients use our Payin solution to fund their Nium accounts. Nium’s Payin solutions empower Financial Institutions to manage their own funds seamlessly and efficiently, driving operational efficiency and client satisfaction.

For more information, see Payins.

Payins and Financial Institutions

Features of payins Financial Institutions use to process the above include:

  • Virtual Receiving Accounts (VRAs): Receive payments in multiple currencies without needing to open multiple bank accounts in each currency, streamlining fund management.
  • Global Reach: Fund using a wide network of currencies across different geographies, allowing seamless global transactions.

Example Payin Solutions

  • Funding Operational Accounts: Nium enables Financial Institutions to receive funds in multiple currencies, supporting their operational needs and ensuring seamless account top-ups and fund transfers.

Foreign Exchange

Nium's Foreign Exchange (FX) solution enables Financial Institutions to convert funds into different currencies at competitive exchange rates.

For more information, see Foreign Exchange.

FX and Financial Institutions

Nium’s FX solution equips Financial Institutions with the tools to efficiently manage currency conversions:

  • Competitive Exchange Rates: Access real-time interbank rates with transparent and guaranteed FX rates.
  • Multiple Conversion Options: Perform conversions using either locked or market rates, offering flexibility based on your needs.
  • Lock Periods: Lock FX rates for periods ranging from 5 minutes to 24 hours, allowing time to confirm rates with your internal stakeholders.
  • Scheduled Conversions: Choose conversion schedules to settle funds at the end of the day, next business day, or two business days, giving you time to fund the source account.

Example FX Solutions

With Nium, Financial Institutions can enhance how they convert funds through our various FX solutions:

  • Real-Time Conversions: Convert funds instantly using market rates for immediate needs, available 24/7.
  • Locked Rate Conversions: Secure a locked FX rate for a specified period, providing predictability in exchange rates for your transactions.
  • Bulk FX Conversions: Convert large amounts of funds in bulk, then distribute payouts in the destination currency.
  • Transaction-Level FX Conversions: Convert funds on a per-transaction basis, ensuring each payment is processed at the best available rate.
  • Scheduled FX Conversions: Plan conversions to occur at a future date, allowing time to fund the source account while securing a favorable rate.

Payouts

Nium's payout solution enables Financial Institutions to facilitate domestic and international fund transfers for their customers; this includes:

  • Multiple Currencies: Financial Institutions can use Nium payouts to convert funds into a different currency. This provides more flexibility when processing cross-border transactions.
  • Batch Payouts: Perform hundreds of transfers with a simple click, streamlining your payment operations.
  • Compliance and Security: Comply with regulatory requirements and employ robust security measures to protect customer funds.

With Nium’s payout solution, Financial Institutions can enhance their payment capabilities and offer customers fast and reliable ways to transfer funds.

For more information, see Transfer Money.

Payouts and Financial Institutions

Different ways Financial Institutions use payouts to move funds include:

  • Scheduled Conversion of Funds: Transfer funds from one currency to another at a pre-determined FX rate (within a period of 24-48 Hours).
  • Transaction Fee Management: FI clients can choose to:
    • Bear transaction costs.
    • Settle transaction costs offline per customer.
  • Variety of Remittance Methods: From banks to cards, FIs can use any method to transfer funds based on the individual customer's preference.

Example Payout Solutions

With Nium, Financial Institutions can expand the services they offer to their customers, including:

  • Remittances: Process customers sending funds overseas to family members.
  • Overseas Spending: Process common overseas expenditures, including emergency medical expenses and hotel accommodations.
  • Business-to-Business (B2B) Payments: Facilitate businesses paying their suppliers both domestically and internationally, ensuring timely and secure transactions.

Additional Features

Additional features FI clients take advantage of in Nium's platforms include:

  • Cards: A comprehensive card issuance solution that enables Financial Institutions to offer customers both physical and virtual cards. For more information, see Cards.
  • Fees: Use our transparent and competitive Fee solution to maximize value for you and your customers. For more information, see Fees.

Integration Checklist

Here’s a broad overview of the key steps Financial Institutions take and features they need to integrate with to go live with Nium.

Following this checklist makes your integration with Nium comprehensive and ready to process live transactions. If you have any questions or need further assistance, please contact Nium Support.

Step 1: Sign Up for a Sandbox and Nium Portal

  1. Sign Up: Create an account with Nium.
  2. Nium Portal: Log in to Nium Portal, a no-code, user-friendly dashboard you can use to manage transactions and anything else processed through Nium. For more information, see Nium Portal.
  3. API Keys: Retrieve your API keys from Nium Portal and test Nium's API.

Step 2: Fund Your Nium Account

Integrate with Payins to fund your Nium account.

Nium API

Use the Payins endpoint and automatically get notified when funds are available to fund your Nium account. For more information, see Payins in our API Reference.

Nium Portal

Alternatively, access your account directly through Nium Portal. For more information, see Payins.

Testing Payins

To test Payins:

  • Simulate Transactions: Use our test requests to directly access your Nium account. For more information, see Testing - Payins.
  • Contact Support: Reach out to Nium Support if you need assistance.

Step 3: Foreign Exchange (FX)

Integrate with our FX endpoints to convert funds into different currencies.

Nium API

Use the FX endpoint to convert funds in your Nium account from one currency to another. For more information, see FX in our API Reference.

Nium Portal

Alternatively, use the Customer Balances page to move and convert funds between currencies in your Nium account.

Step 4: Payouts

Nium API

Integrate with Payouts and use the Transfer Money request to process payouts.

Nium Portal

Alternatively, use Batch Payouts in Nium Portal to move funds.

Testing Payouts

To test Payouts:

  • Nium API: Use the Transfer Money request to process payouts using your sandbox credentials.
  • Nium Portal: Use Batch Payouts in your Nium Portal sandbox environment.

Step 5: After the Transaction

Responding to RFIs

Prepare to respond promptly to any Requests for Information (RFIs) to avoid interruptions in transaction processing. For more information, see Transaction RFIs.

Step 6: Additional Technical Requirements

Webhooks

Set up and configure webhooks to receive real-time notifications about transaction statuses and other events. Extensively test webhooks to confirm they are correctly set up and handling all necessary event notifications.

For more information, see Webhooks - Overview.

Reports

Set up and configure reports to access detailed information about your transactions and other financial activities.

Access reporting via our API or directly through the Nium Portal. We recommend thoroughly testing the reporting configurations to ensure they provide the necessary insights and data accurately.

For more information, see:

Next Steps

Nium's platform provides comprehensive solutions to enhance the operational efficiency of Financial Institutions. By integrating with Nium, you can offer seamless financial services, ensuring compliance and customer satisfaction.

Signing Up

To get started with Nium:

  1. Sign Up: Start by signing up for Nium Portal and API access to explore Nium's platform.
  2. Obtain API Keys: After signing up, retrieve your API keys to authenticate your requests.
  3. Explore Nium's Documentation: Familiarize yourself with our guides and API documentation to gain a preliminary understanding of how Nium works.

Once you're ready to move forward, contact us and a member of our team will reach out!

Updated 27 days ago