Blog Post|Industry Perspectives

How Is Nium Different from a Bank?

The series of bank collapses this month, starting with Silicon Valley Bank, had an undeniable ripple effect on the technology community and beyond, sparking dialogue and debate over how a culture of risk management could have prevented its demise.  

What are the options available for businesses to safely store funds in these economically volatile times? How can we ensure the accessibility of money to meet our expenses? As we reflect on the implications of this series of events, these are just some of the questions being asked. Now is the time to discuss the importance of risk mitigation and the use of better alternatives to ensure uninterrupted money movement and business operations.

Note: SVB has not been a Nium shareholder, nor did Nium hold funds in their bank.   

How Does Nium’s Global Payments Infrastructure Support Your Business’s Success:

Nium’s leading B2B payments infrastructure enables seamless money movement around the world so businesses can scale, grow revenue, and access new markets. Helping our customers stay focused on their vision, we protect them from the risk of financial volatility in the following ways:

1. Safeguarded funds in segregated customer accounts

Nium holds customer funds in safeguarded accounts, a segregated customer money account in compliance with regulatory guidelines. These funds held in a separate account cannot be accessed by Nium, creditors, banks, or third parties for any purpose.

Unlike banks that access customer funds and use them to invest in bonds and assets to earn a financial return, we ensure that their money is protected. Nium does not use customer money for investments, nor do we use it to give out loans. With our protection mechanisms and compliance policies in place, you have the peace of mind as a business that your funds are available to you for withdrawal or customer pay outs, as per your discretion.

2. On-demand, real-time money movement

Our modern B2B global payments infrastructure sets businesses up for fast-tracked success. Nium’s expanding pay out network supports 100 currencies and spans 190+ countries, 100 of which are in real-time. Funds can be disbursed to accounts, wallets, and cards and collected locally in 35 markets. Also, Nium’s growing card issuance business is already available in 34 countries.

3. Global payment network and rails

Considering the dangers of relying on a single bank that has come to light, Nium gives its customer access to a wide network of large global banks and payment rails. Helping maintain liquidity and ensure transactions flow smoothly, we modernize payments within the country and cross-border for proactive risk mitigation and financial stability of your business.

4. Multi-currency support and currency hedging

With payments becoming increasingly cross-border, exchange rate volatility can take an expensive toll on businesses pursuing global growth. Nium’s multi-currency support and foreign exchange solution with bulk currency conversion and rate locking feature help businesses manage risk, meanwhile using FX fluctuations to their advantage during dips.

5. Real-time fraud detection and prevention

Nium detects and blocks fraudulent activities with real-time prevention and payment flow monitoring, further strengthening the risk mitigation strategy for companies. Our global B2B payments infrastructure is tailored to address businesses’ distinct challenges, and we stay on top of the latest technology to safeguard customer funds from payment fraud.

Want to learn more about how Nium helps businesses simplify expansion, streamline payments, and amplify revenue? Let’s talk!  

Have any questions?