The Market Reality
Understanding the correspondent banking landscape and CoLedger’s role
Where CoLedger Focuses
Underserved Markets
Clients often overlooked by larger institutions who need basic international banking services.
Collaborative Solutions
Creating infrastructure that strengthens the entire banking ecosystem through cooperation.
Peer-to-Peer Values
Markets where peer-to-peer banking creates more value than traditional correspondent relationships.
The emphasis is on collaboration, not competition
CoLedger creates infrastructure for non-global banks to work together and with larger institutions, serving markets that benefit from collaborative approaches rather than traditional correspondent relationships.
The Correspondent Banking Challenge
Large banks have been reducing correspondent relationships & requiring bundled services especially where:
- Smaller non-global banks are requiring disproportionate resources
- Corridors with complex or challenging compliance
- Relationships no longer align with strategic priorities
This trend is already well underway. CoLedger provides a collaborative alternative that keeps international banking functional and within the regulated sector.
We’re creating infrastructure that serves markets generally overlooked, not competing aggressively for core profitable relationships.
Industry Challenges CoLedger Addresses
Without structured collaboration platforms, regional banks face several challenges:
Limited Access
Non-Global banks may turn to fintech alternatives or open account transactions when they lack direct correspondent relationships, moving volume outside the traditional banking system.
Informal Collaboration
Banks currently rely on ad-hoc arrangements via email and phone calls—informal collaboration without proper governance.
Declining Participation
Some regional banks exit international banking entirely when they lack efficient access, reducing overall market sophistication.
With CoLedger: A Better Alternative
Structured, compliant peer-to-peer routing
Keeps business within the regulated banking system with proper governance
Transparent, auditable collaboration
Brings informal practices into the light with compliance-focused frameworks
Professional standards and best practices
Creates more sophisticated regional banks that become better partners
Future pipeline for high-value services
Small exporters today need LCs and trade finance tomorrow—services only large banks provide
Industry-Backed by BAFT
CoLedger emerged from BAFT Regional Bank Committee discussions as a response to the systematic withdrawal of large banks from correspondent relationships. Another key factor was global banks requiring bundled services and opting not to participate in pass through advising of letters of credit(LC). Sometimes global banks would ignore instructions and advise the LC directly to the beneficiary, circumventing the smaller bank.
BAFT advocates for preserving correspondent banking relationships, promoting financial inclusion in international trade, and supporting the vital role non-global banks play in the global financial system. CoLedger directly advances these objectives by providing a structured, compliant framework.
BAFT’s policy work focuses on sustainable correspondent banking. CoLedger demonstrates a market-driven solution that complements these efforts.
BAFT provides training on compliance and standards. CoLedger embeds these into operational infrastructure.
The Choice for the Industry
CoLedger emphasizes collaboration over competition, formalizing peer-to-peer banking that’s already happening informally.
Our focus is on creating infrastructure that serves overlooked markets and strengthens the entire banking ecosystem, ensuring regional banks have the tools they need to participate in international trade.
The real competition isn’t CoLedger—it’s fintech disruptors, unregulated alternatives, and the fragmentation of international banking.
