Is Fyorin a Bank?

In the dynamic world of finance, Fyorin stands out with its unique approach. While we provide SMBs with global payment and card services, we are not a bank. We've built our unified payments and financial technology platform on top of a global network of financial institutions to ensure the security of customers' funds, streamlined onboarding and operations to allow global businesses to grow. How is that possible in practice? This article demystifies Fyorin's approach to providing global payment and unified treasury services at scale and answers the question: is Fyorin a bank? Is it an EMI? Do we compete with traditional banks?

Fyorin's approach is based on its foundation as a technology provider. We tap into the licensing capabilities of our global network of Financial Institutions to enhance their offering through an innovative technology layer that opens up a hub of financial capabilities, to businesses, in over 200 countries, 92 licences and supporting 100+ currencies. On a strategic level, our model provides businesses with a unique benefit - a unified compliance process where SMBs only need to onboard once with Fyorin to access a global network of financial institutions.

With Fyorin, your business will be connected to the financial institution that is most suitable for your needs, eliminating the hassle of sourcing for new financial institutions as the business grows and scales. Fyorin technology combines and connects various financial products powered and serviced by its global network of financial institutions into an innovative technology layer. This allows SMBs to bank multi-bank as if they were banking with one.

This enables businesses to reduce operational costs and simplify banking relationships internationally. This approach also helps SMEs eliminate unnecessary intermediaries especially for cross-border money movement. Moreover, it provides businesses with comprehensive visibility and control over their treasury and consolidated reporting across multiple accounts, institutions and currencies.

It’s also crucial to understand that Fyorin is not an EMI (e-money institution). By positioning itself as a technology provider rather than an institution offering the services directly, Fyorin sidesteps the need for additional licensing. It is a strategic decision that addresses growing distrust towards challenger banks. With our unique approach, our clients' funds are protected with the underlying financial provider. Secondly, we give SMEs the flexibility to diversify their liquidity risk across several financial institutions. Liquidity risk diversification provides businesses with an added layer of security, confidence, and financial flexibility that traditional EMIs cannot offer.

Fyorin takes a collaborative stance, refraining from direct competition with traditional banks. Rather than building another challenger bank that eats the lunch of banks, we want to transform the way incumbent banks serve their clients.

Each business requires a banking relationship, and SMBs place a certain level of trust in traditional financial institutions. Unfortunately, the size and continuous increase of regulatory compliance, makes it difficult for the traditional banks to innovate, which leads customers to search for additional banking relationships, alongside their primary one, in order to fulfill their financial operational needs such as automated accounts payable and receivable, additional currencies, credit cards and more. This reduces customer loyalty and stickiness with the bank as its customers look for efficiency and flexible banking products that fit the technological world we are living in.

The business model of a bank is to use deposits to fund lending. This means that their main revenue driver is driven by interest margins. However, this has been squeezed by the rising competition. Due to this, banks now have to generate revenue from non-interest avenues, which requires them to drive technological innovation forward and move quickly. There is no doubt that this isn't easy, especially in a world where banks face challenges not just from the regulators, but also from Fintech companies that don't have to deal with compliance constraints that banks do.

By joining a global network of financial institutions, Fyorin technology helps banks diversify their non-interest revenues, increase revenue from core products, and compete with Fintechs. As a member of our network, you can leverage the capabilities of others to quickly launch innovative financial products using our technology. By doing so, banks are able to increase their core product stickiness, increase the lifetime value of their customers, as well as have the end-to-end transactional visibility of their customers, which is essential for compliance.

Fyorin stands out as an innovator in the rapidly evolving financial services landscape. As a technology provider partnered with an extensive global network of financial institutions, Fyorin transforms how businesses interact with financial institutions and products, while enabling them to scale globally. Furthermore, we provide traditional banks with a viable path to remain relevant and competitive. Rather than creating another challenger bank, Fyorin's technology connects existing capabilities of financial institutions into a unified network and enables financial institutions to deploy new innovative products at speed, to meet changing customer needs.

To learn how Fyorin can help your business scale globally, securely, and effectively, or to ensure that your institution stays relevant and grows in today's changing financial services landscape, contact us at [email protected].