Expanding Access to Cross-Border Banking Capabilities for Community Financial Institutions
Derivative Path announced the delivery of a comprehensive foreign exchange payments solution designed to help community banks offer seamless cross-border payment services to their commercial customers through existing digital banking environments. The solution is powered by Wells Fargo’s FX Payment Solutions and integrated through Jack Henry’s Treasury Management platform, bringing together liquidity, technology, and user-experience layers into a single operational workflow that removes traditional barriers to international banking services for smaller institutions.
Addressing the Growing Demand for Global Payment Capabilities
Commercial banking customers increasingly operate across borders, creating rising demand for fast, secure, and transparent international payment capabilities. Businesses of all sizes are expanding supply chains, sourcing materials internationally, paying overseas employees and contractors, and entering new global markets. As globalization reshapes commerce, cross-border payment functionality is no longer considered a premium offering but a core expectation.
Community banks historically faced major obstacles in delivering international payments. Large institutions invested heavily in FX desks, liquidity partnerships, regulatory infrastructure, and specialized technology. Community banks, by contrast, often struggled with the cost and complexity required to build similar capabilities internally. The result was a competitive gap that made it difficult for smaller institutions to fully support the global ambitions of their commercial clients.
Removing Barriers to Entry Through Strategic Integration
Derivative Path designed its FX payments solution to eliminate the historical burden of infrastructure development. Rather than requiring banks to build international payments capabilities from the ground up, the platform connects banks directly to established liquidity providers and existing treasury management tools. This approach enables banks to offer sophisticated cross-border services as a natural extension of their current digital banking offerings.
The integration leverages DerivativeEDGE®, the company’s SaaS platform, which already supports interest rate derivatives and risk management workflows for hundreds of financial institutions. By extending this platform to support international payments, Derivative Path enables banks to consolidate multiple treasury functions into a unified digital experience.
Leveraging Wells Fargo’s FX Payment Solutions for Liquidity and Pricing
At the core of the new solution is Wells Fargo’s FX Payment Solutions, which provides the liquidity and pricing necessary to execute foreign exchange transactions efficiently and competitively. Acting as the FX desk and liquidity provider, Wells Fargo delivers real-time foreign exchange pricing and execution capabilities.
This partnership enables community banks to provide enterprise-level FX services without maintaining their own trading desks or liquidity relationships. By tapping into a major global bank’s FX infrastructure, community institutions gain access to deep liquidity pools, competitive pricing, and a proven operational framework.
Connecting Through Jack Henry’s Treasury Management Platform
The integration is delivered through Jack Henry’s Treasury Management platform, a widely used digital banking solution that serves commercial clients across the United States. By embedding FX payments directly into the existing treasury management workflow, the solution ensures that commercial customers can initiate foreign currency wires within the same platform they already use for domestic banking.
This seamless user experience eliminates the need for clients to access separate systems or external providers, reducing friction and improving operational efficiency.
Delivering a Unified Workflow for International Payments
The FX payments solution brings together three critical components into a single workflow. Commercial clients initiate foreign currency wire transfers through their bank’s digital treasury platform. Derivative Path’s International Payments solution manages the FX execution process, ensuring accurate pricing, compliance checks, and transaction processing. Wells Fargo provides liquidity and FX pricing, enabling competitive rates and reliable execution.
From the end-user perspective, the entire process appears as a seamless extension of their existing digital banking experience.
FirstBank Becomes the First Institution to Go Live
FirstBank of Nashville, Tennessee became the first financial institution to implement the new solution through Jack Henry’s Treasury Management platform. The bank has been a Derivative Path client for five years, previously using the platform for interest rate derivatives. The addition of international payments marks a significant expansion of the relationship and demonstrates the scalability of the DerivativeEDGE platform.
Strengthening Long-Term Partnerships Through Platform Expansion
The collaboration between Derivative Path and FirstBank reflects a broader trend toward deepening technology partnerships between fintech providers and financial institutions. By extending its use of the DerivativeEDGE platform, FirstBank gains access to new capabilities while maintaining continuity within its existing technology ecosystem.
This expansion demonstrates how fintech platforms can evolve alongside their banking partners, supporting long-term growth and innovation.
Enhancing Competitive Positioning for Community Banks
Offering international payments directly through a bank’s digital platform strengthens its competitive position in several ways. First, it allows the institution to retain commercial clients who might otherwise turn to larger banks or third-party fintech providers for cross-border payment services. Second, it creates opportunities to generate new revenue streams through FX transactions. Third, it enhances the bank’s reputation as a full-service financial partner capable of supporting global business operations.
Supporting Commercial Client Growth and Retention
For commercial clients, the ability to execute international payments within their existing banking platform provides significant operational benefits. Businesses can streamline workflows, reduce reliance on external providers, and gain greater transparency into transaction costs and timelines.
By embedding international payments within their digital banking ecosystem, community banks can strengthen relationships with commercial customers and support their long-term growth strategies.
Simplifying the User Experience for International Transactions
One of the key design principles behind the solution is simplicity. Commercial clients can initiate foreign currency wires using the same interface and workflow they use for domestic payments. This consistency reduces training requirements, minimizes operational risk, and improves overall user satisfaction.
Driving Revenue Opportunities Through FX Transactions
International payments create new revenue opportunities for community banks. By offering competitive FX pricing and execution, banks can generate fee income and deepen engagement with commercial clients.
This revenue potential makes international payments a strategic growth area for community institutions seeking to diversify income streams and strengthen client relationships.
Supporting Digital Transformation Across the Banking Sector
The launch of this FX payments solution reflects broader digital transformation trends within the banking industry. Financial institutions are increasingly adopting platform-based solutions that enable rapid deployment of new services without large capital investments.
Derivative Path’s integration model exemplifies this shift by allowing banks to add sophisticated capabilities through partnerships and cloud-based platforms.
Meeting Compliance and Risk Management Requirements
International payments involve complex regulatory and compliance requirements, including anti-money laundering checks, sanctions screening, and reporting obligations. The integrated solution incorporates these controls within the workflow, reducing the compliance burden on community banks.
By embedding compliance processes within the platform, the solution ensures that banks can offer cross-border payments while maintaining regulatory standards.
Creating a Scalable Model for Future Growth
The integration provides a scalable framework that can support additional banks and expanded functionality in the future. As more institutions adopt the platform, the ecosystem of connected services and liquidity providers can continue to grow.
This scalability positions Derivative Path to play a central role in helping community banks expand their digital service offerings.
Delivering Transparency and Efficiency in FX Execution
Transparency is a critical requirement for commercial clients conducting international transactions. The solution provides visibility into FX pricing, transaction status, and settlement details, enabling businesses to manage cash flow and risk more effectively.
Building a Connected Ecosystem of Financial Services
The collaboration between Derivative Path, Wells Fargo, and Jack Henry illustrates the power of ecosystem partnerships in modern banking. By combining specialized capabilities from multiple providers, the solution delivers a comprehensive offering that would be difficult for any single organization to develop independently.
Empowering Community Banks to Compete with Larger Institutions
Community banks play a vital role in supporting local economies and small-to-mid-sized businesses. Providing access to international payments helps these institutions remain competitive and continue serving their communities effectively.
Expanding the Capabilities of the DerivativeEDGE Platform
The addition of international payments represents a significant enhancement to the DerivativeEDGE platform. Originally designed for derivatives and risk management, the platform now supports a broader range of treasury services, creating a more comprehensive solution for financial institutions.
Enabling Seamless Integration with Existing Systems
The integration approach minimizes disruption by connecting with systems banks already use. This reduces implementation time and allows institutions to bring new capabilities to market quickly.
Enhancing Client Trust Through Reliable Infrastructure
By leveraging established partners for liquidity and technology, the solution provides reliability and performance that commercial clients expect.
Supporting the Evolution of Digital Treasury Services
Digital treasury management continues to evolve as businesses demand more sophisticated tools for managing cash flow, risk, and payments. The new FX payments capability represents a key step in this evolution.
Encouraging Innovation Through Fintech Partnerships
The collaboration highlights the role of fintech partnerships in driving innovation across the banking industry. By working together, technology providers and financial institutions can deliver new services faster and more efficiently.
Expanding Access to Global Markets for Businesses
Providing international payment capabilities enables businesses to participate more fully in global markets. This supports economic growth and strengthens the relationship between banks and their commercial clients.
Supporting Financial Institutions with Proven SaaS Infrastructure
The DerivativeEDGE platform provides a cloud-based infrastructure that simplifies deployment and ongoing management. This reduces operational overhead and allows banks to focus on serving their customers.
Creating Opportunities for Continued Platform Innovation
The successful launch of the FX payments solution opens the door for additional enhancements and integrations that can further expand the capabilities of community banks.
About Derivative Path
Derivative Path combines advanced technology with financial expertise to serve capital markets participants, including financial institutions and alternative investment managers. Our cloud platform and advisory teams help clients manage interest rate, FX, and commodity risk with greater transparency, control, and efficiency across the trade lifecycle. Trusted by over 300 institutions, including top-tier banks, credit unions, and alternative investment managers, Derivative Path delivers the risk insights and operational rigor required in today’s markets. For more information, visit www.derivativepath.com.
About FB Financial Corporation
FB Financial Corporation (NYSE: FBK) is a financial holding company headquartered in Nashville, Tennessee. FB Financial Corporation operates through its wholly owned banking subsidiary, FirstBank in Tennessee, Kentucky, Alabama, and Georgia. FB Financial Corporation operates 93 full-service branches across its footprint and has approximately $16.0 billion in total assets. Visit: www.firstbankonline.com.
