Neo, the cross-border payments fintech, has cleared more than €10bn through its corporate multi-currency accounts since launch in 2020. The firm provides a one-stop-shop account for corporate treasurers. It reports that its cleared volume has doubled in just under a year. The total is set to reach €5bn in 2023 alone, reflecting growing demand from businesses for alternatives to traditional banks.

The vast majority of businesses rely on traditional banking for their FX and payment needs. Neo argues that the banking crisis highlighted the risks of relying on one or two banking partners. Treasurers saw the short-term liquidity issues that those depositing funds solely with the likes of Silicon Valley Bank suffered. As a result, three-quarters of treasurers are considering diversifying their banking pool.

Neo reports growing demand among treasurers for a fast, cost-effective and transparent one-stop-shop for all their needs. This is helping Neo secure new clients and increase volumes from existing customers.

When working with traditional corporate banks, opening an international bank account is a difficult, long and painful process. In too many cases says Neo, it is simply impossible to get an account. Firms that are fortunate enough to get one, have to contend with numerous operational hurdles and inefficiencies. They also can’t get support from responsive cross-border payment specialists when problems do arise.

Neo: one-stop shop for businesses around the world

As SMEs expand and do business in different countries, many end up having different accounts for each country or currency. This, in itself, adds complexity. If a business needs to onboard a supplier in a different market, it can take weeks to get the infrastructure in place. This is time and money which SMEs simply can’t afford to lose out on.

Neo argues that it helps overcome these issues. It has evolved from a platform offering FX hedging to become a one-stop-shop for businesses across the globe. Businesses can set up an international account with their own multi-currency International Bank Account Number (IBAN). This enables them to manage cash flows with their supply chains, hedge their FX exposures and access all transaction data, in one place.

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Virtual wallets enable them to organise funds and make and receive payments in more than 25 currencies.

Neo now works with more than 400 corporates across 28 countries. It delivers payments in more than 100 countries. More than 8,000 banks are reachable through its Bank Identification Code (BIC) on the Swift network. Neo supports businesses in a wide range of industries such as export-import, software, asset management, payment services and alternative lending.

Global cross-border market to exceed $250trn by 2027

Neo’s client funds are always deposited with various prime banking institutions as custodians and are strictly segregated and held outside of Neo’s assets. Neo does not invest client funds in any type of security so 100% of clients’ funds are available at any time.

Laurent Descout, co-founder, CEO, Neo said: “Accessing multi-currency accounts has literally become impossible for too many corporates across different industries. This has been a problem for more than a decade. While the global B2B cross-border market is estimated to exceed $250trn by 2027, there are no signs of this getting any better. Neo is tackling this issue head on. Doubling our transaction volumes in under a year is a clear mark of trust from both new and existing clients.”