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Beyond SEPA & Faster Payments: A Guide to Complex International Pension Transfers 

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While SEPA and Faster Payments have made moving money across European borders relatively simple, pension administrators face a tougher challenge when it comes to retirees who’ve packed their bags for destinations beyond Europe.

The complexity results from the fact that every country has its own payment-system quirks. One might need a pensioner’s mother’s maiden name, another a social security number, and somewhere else, a special code just to explain why you’re sending money. If these vital pieces of information are missing, then payments can slow to a crawl or stop entirely, leaving pensioners waiting and wondering.

These unique challenges require a tailored solution, and it’s for this reason that we here at Navro have spent considerable time understanding the issues facing pension admins and thinking of how we can make their transactions far simpler.

Inefficiencies in international pension payments

This is no mean feat. It’s a significant challenge to make sure every payment works as it is supposed to. The details have to be absolutely perfect; otherwise, money might not only arrive late—it might be the wrong amount due to issues like currency conversion hiccups, or the fact that payments intermediaries are taking a cut. For pensions that rely on timely and accurate payment, mistakes can be a major inconvenience and that cranks up the pressure on administrators to get every transfer right.

Dealing with this workflow can be a massive headache for the teams managing these payments. The pressure is on not just to send money from A to B but to navigate a maze of international rules and regulations. Each failed payment can lead to a flood of customer complaints and a mountain of extra work for customer support teams. Even with just a handful of errors a month, the costs associated with investigation and remediation can quickly add up.

Next-level validation for more seamless and accurate payments

That’s why at Navro we’re looking at how we can help solve the problem at source. We’ve worked hand-in-hand with global tier-one banks and third-party payments systems providers to create a data validation engine that automatically verifies account details according to the specific requirements of each (very individual) jurisdiction.

Embedded in our Payments Curation Platform, our AI processes check whether the individual payment requests that pension admins receive contain all the information required for the country where the payment is being made. This approach results in a high degree of accuracy and fewer rejected payments, because the Navro platform understands the specific payment requirements and the information required.

Unifying payments rails on a single platform

The choice of payment rails is another important piece of the equation. Rather than relying on a network of corresponding banks that they must manage themselves, pensions administrators can instead tap into a variety of local payments rails using the Navro platform. By consolidating on Navro’s Payments Curation Platform, pension administrators greatly reduce the complexity of their payments infrastructure, as they only need one contract and one API to meet their needs.

Using local payment rails can also mitigate the delays and complications often associated with international transfers. The approach not only speeds up the process but also reduces the fees typically associated with international banking transactions. By integrating into the local financial infrastructure, companies ensure that pensioners receive their payments swiftly and securely, directly into their local bank accounts. This is crucial for retirees who depend on timely and reliable access to their funds, no matter where they are in the world.

Navro has developed systems that not only process transactions accurately but also precisely on the scheduled dates. These systems are robust, taking into account different time zones and the idiosyncrasies of international banking holidays and processing times. Such precision ensures that retirees receive the exact amount they expect exactly when they expect it. As well as benefitting pensioners, payment precision means that administrators can keep money in their corporate accounts accruing interest for longer.

Enhancing customer service and lower costs

At the heart of effective international pension management is a relentless commitment to customer satisfaction. This means not only meeting but anticipating the unique needs of each retiree. Some may require a more personalised service, perhaps with payment schedules that align with other income streams or specific local banking practices. In these cases, we tailor our approach, ensuring that even the most bespoke requirements are met.

It’s also worth noting that the payments curation services we offer enable significant cost efficiencies. By optimising the payment process with Navro, pension administrators can reduce the working capital required for cross-border transactions by as much as 70%. This reduction is not just a win for the financial sheets but also translates into fewer transaction errors. With fewer errors, there’s less need for time-consuming reconciliations and administrative overhead, reducing the strain on resources and enhancing overall operational efficiency.

A new standard for cross-border pension payments

The Payments Curation approach pioneered by Navro removes the complexities surrounding cross-border pension payments. By adopting a holistic strategy that incorporates local payment infrastructures, precise control of payment timings, and a deeply ingrained customer-centric ethos, Navro has redefined what it means to manage international pensions.

This innovative approach not only simplifies the transaction process for administrators but also enhances the experience for pension recipients. By ensuring payments are timely, accurate, and tailored to individual needs, Navro has set a new industry standard.

Ultimately, Payments Curation benefits both pensions and their administrators, fostering a more seamless and responsive service landscape. Pensioners enjoy the reliability and security of receiving their payments without delay or error, while administrators benefit from the streamlined processes that free them to focus on providing exceptional service. In this way, Navro’s approach not only meets but exceeds the demands of today’s global financial environment, benefiting all parties involved in the pension management ecosystem.

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