Modernizing Financial Settlement Systems: Seeking a Stripe-Like Clearing and Settlement Experience

Today’s financial clearing and settlement infrastructure was built primarily around the needs of large banks. Fintech companies and payment service providers often must access it through banks and multiple layers of intermediaries. This structure makes the timing and cost of fund transfers, as well as liquidity needs, difficult to predict. The industry is therefore looking for modern services that could simplify clearing and settlement in the same way Stripe streamlined payment acceptance.

Lorum CEO George Davis recently argued that settlement systems should offer more direct, real-time and predictable access, reducing layers of intermediation and improving the efficiency of money movement. However, the related report disclosed no specific investment amount, transaction volume, launch date or list of participating institutions. For now, the proposal remains an industry reform initiative.