For CFOs, security is a critical factor when choosing a cross-border payment provider — and rightfully so! The risks of fraud, breaches and misappropriation of funds can cause significant stress and uncertainty.
At iBanFirst, we take client fund protection seriously. How we secure client funds and what happens in the unlikely event that iBanFirst runs into financial difficulties or becomes insolvent are important questions to ask when choosing whether to partner with us.
In this article, we explain how we safeguard your money through account segregation to give you confidence and peace of mind when conducting international payments and currency exchanges on our platform.
A segregated account is a separate bank account set aside solely for client money. Regulated payment institutions like iBanFirst cannot secure a financial service provider’s license without maintaining segregated accounts. In other words, iBanFirst must keep all client funds in separate, safeguarded accounts by law.
This means that any funds you entrust to us are held entirely separate from our own operational funds in an account with one of our banking partners. In the unlikely event that iBanFirst encounters financial difficulties or becomes insolvent, your money will remain fully secure and protected in one of these accounts.
We hold these segregated accounts with top-tier EU banking partners, which ensures the highest levels of safety and reliability and compliance with the regulations of the European central bank.
Intended to shield your business finances from the misappropriation of funds, account segregation offers several key advantages:
In the European Union, iBanFirst is licensed and supervised by the National Bank of Belgium. We hold two accreditations under The Payment Service Directive 2 (PSD2) — Account Information Service Provider (AISP) and Payment Initiation Service Provider (PISP). iBanFirst must comply with PSD2 to operate throughout the EU and one of the main stipulations of this law is the use of segregated accounts for client funds.
Also referred to as the revised Payment Services Directive, PSD2 is a European regulation governing payment systems in the EU. It regulates how payment institutions, such as iBanFirst, operate and manage client funds and payments. The intention is to create a more open, competitive and secure payments landscape by allowing regulated financial institutions to access banking data and accounts.
To comply with PSD2, payment providers like iBanFirst must have effective risk management procedures and monitor these through robust governance arrangements. Under the PSD2 directive, client funds must be segregated from the payment institution's own funds and held at a custodian bank. Additionally, a cash reserve must be maintained to ensure the payment institution's solvency. Client funds must be clearly identifiable among the accounts. These measures ensure that client funds remain safe, secure and accessible to clients.
As a regulated payment institution authorised by the National Bank of Belgium, we follow strict rules to safeguard your money. Our regulatory framework ensures that we maintain rigorous procedures to protect client funds, giving you confidence in the security of our services.
But our commitment goes beyond simply meeting regulatory requirements. We’ve chosen to work with top-tier banking partners — larger, safer institutions with an extensive international presence and greater capital — and have implemented a multi-layered approach to client fund security. By partnering with multiple banks in the EU, we can guarantee that your funds remain unaffected even if one of these institutions encounters difficulties.
Trust is one of our core values and so shapes our approach to client fund security. By partnering with iBanFirst, you gain a trusted, regulated payment service provider that’s safe and secure. With our simple yet powerful platform — combined with support from in-house FX experts — you can execute cross-border payments and currency conversions securely and effortlessly. And with your money held in segregated accounts, you never have to worry about the safety of any business funds held with us.
Discover more reasons why you should choose iBanFirst for secure, reliable cross-border payments.