Correspondent Banking Network
The invisible infrastructure connecting banks worldwide for international payments
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0 / 5 completedThe Hidden Banking Network
When you wire money internationally, your bank probably doesn't have a direct relationship with the recipient's bank. Instead, they use correspondent banking—a global network where banks maintain accounts with each other to facilitate cross-border payments.
This network processes over $5 trillion daily in international payments, yet most people never see it. It's the infrastructure layer that makes global commerce possible—connecting over 11,000 banks across 200+ countries.
Why Correspondent Banking Exists
Small banks cannot open branches in every country. Correspondent relationships give them global reach by proxy—they hold accounts at banks in other countries.
International payments require currency exchange. Correspondent banks provide foreign currency accounts and handle conversions at scale.
Each country has different banking regulations. Correspondent banks navigate local rules, sanctions screening, and anti-money laundering checks.
Rather than every bank connecting to every other bank (45 million relationships for 10,000 banks), correspondent banking creates hub-and-spoke efficiency.
Correspondent banking solves the global payments problem but creates inefficiency. International wires take 3-5 days, cost $25-50, and pass through multiple intermediaries. Each hop adds time, cost, and risk—which is why blockchain-based alternatives are gaining traction.