Securing a bank account is great, but if your provider can’t scale with you, it’s only a temporary fix.
Steve Allen, VP of Sales at Clear Junction
If you run a money service business (MSB), you already know the one of the hardest parts isn’t moving money – it’s getting a bank to say yes.
After more than 20 years in the space, I’ve learned that most MSB pain points boil down to finding a banking partner that truly understands what you do. It’s something I explored in detail during a recent MSB Association webinar – which, funnily enough, landed exactly four years to the day since I joined Clear Junction. Not a bad way to mark the occasion!
If you missed it (or just want the highlights), here’s a quick breakdown of what I shared – everything from how to approach onboarding to why stablecoins might be your new best friend…
Why banks say no to MSBs
Remittance is the biggest sector we serve at Clear Junction, so we see the patterns loud and clear. The UK and Europe are still major players in global payments, and corridors like UK-Nigeria, Poland-Ukraine, and France-North Africa are lifelines for families sending money home. But while remittance has moved on (gone digital, gone real-time) many banks still view MSBs through a dated lens.
Too often, they see:
- High numbers of small transaction volumes and low margins
- Money flowing to “exotic” destinations they don’t fully understand
- Compliance setups they’re not equipped (or inclined) to properly assess
- The frequent occurrence of cash in the payment chain
Instead of engaging, many banks simply don’t gamble on the perceived risk and walk away entirely. To be brutally honest, there’s more derisking in this space than almost anywhere else. It’s rarely personal, but it can make life incredibly difficult for MSBs trying to operate responsibly.
How to survive bank onboarding without losing sleep
Getting through onboarding is often the toughest part, but showing up prepared makes a world of difference.
Show up sharp, transparent, and in control, and the whole process will be much smoother. If you’re vague, disorganised, or hoping to gloss over awkward details then you’re out before the second slide of your deck.
What helps:
- Have a clear fund flow map. I love seeing customers who can point to where money’s coming from (what countries – and by cards, open banking or bank transfer?), where it’s going, and what controls are in place.
- Your documentation should be pristine; AML policies, UBO information, licenses – the lot.
- Most of all, show that compliance isn’t something you’re begrudgingly doing because you have to. Show that it’s something you own, understand, and champion. After all, you invest a lot of money in this function – it’s time to show off!
What doesn’t help:
- Cutting corners. Skipping info and hoping nobody notices. Don’t be vague!
- Underinvesting in compliance is a big red flag. If your compliance team can’t articulate what tools they use and what they’re checking against, it says a lot about the company’s culture – and not in a good way.
- And if you’re asking for zero monthly fees and bargain-bin transaction rates right off the bat, it gives the wrong impression. Price is part of the conversation, of course, but don’t lead with it. Let’s talk value first. This is so important.
Cross-border payments are still more complicated than they should be
Let’s say you clear the bank onboarding hurdle. Great. But then you hit the next wall: sending money abroad.
What if the country you’re trying to settle in suddenly falls off your bank’s approved list? What if the only payout partners available use legacy rails that are slow, expensive and opaque?
Systems like SWIFT still do the job, but slowly. You’re relying on multiple correspondent banks, each with their own checks and appetites. That means long delays, surprise FX fees, and a black hole when it comes to payment tracking and lots of cashflow “in transit”.
We’ve helped clients overcome this using alternative rails – from proprietary infrastructure to blockchain-based solutions. The result is settlement times cut from days to minutes, with full end-to-end visibility.
Stablecoins are more than a buzzword
Stablecoins often get thrown into the “crypto” pile, but they’re not hype – they’re tools. When used properly, they can make cross-border payments faster, cheaper, and fully trackable and speed up that vital cashflow.
Here’s how it plays out: A customer in the UK sends GBP → it gets converted to USDC → zooms across the blockchain in seconds → your local partner off ramps it into local currency. The whole thing is executed in under an hour, and every step is traceable.
Compare that to SWIFT: 2-to-5-day delays, mystery deductions, and zero visibility.
Of course, it only works if you treat stablecoins like a core part of your infrastructure, not a crypto shortcut. You’ve got to be able to explain how they fit into your fund flows, how you monitor them, and how you’re staying compliant.
Done right, stablecoins aren’t a red flag for banks, and they can solve a lot of the problems I’ve mentioned.
Scaling smart: banking partners should help, not hinder
Securing a bank account is great, but if your provider can’t scale with you, it’s only a temporary fix.
What you need is a partner that’s aligned with your long-term goals. That means:
- Support with licensing, audits, and regulator conversations
- Infrastructure that handles multiple currencies and routes transactions quickly
- Tools that help you automate and innovate – API connectivity, VIBANs, FX engines, and stablecoin capabilities
Your payments infrastructure either helps you grow, or it quietly limits you. Choose a partner who’s building for where you’re going, not just where you are.
Banking as an MSB is tough, but not impossible. With the right prep, strong compliance, and a clear understanding of how you operate, you can make it through onboarding and build lasting relationships.
If you missed the webinar, catch the replay here. And if you’re navigating these challenges yourself, get in touch – I’m always happy to chat with MSBs looking to do things right.
