Payment models in international payments and their conditions to be applied at commercial banks

Abstract

There is a variety of payment models being applied in international payments at banks around the world and in Vietnam, including centralized model, decentralized model, outsourcing model and others. Each model has its own advantages and disadvantages as well as conditions to be applied. Selecting an appropriate payment model helps a bank not only improve its risk management capability, save costs but also enhance its professionalism and competitiveness in the market. In this research, the author discusses certain conditions for such payment models to be applied, with which a bank can compare its conditions in practice in order to select the most appropriate model for its international payments