U.S. Markets closed

Wells Fargo Unveils DLT-Based Cross-Border Transfer Program

Zacks Equity Research

Wells Fargo & Company WFC is launching pilot digital cash transfer program that will use its distributed ledger technology (DLT) platform to settle cross-border money transfers internally across its global network using digitized cash. 

The pilot program is expected to be available in 2020. It will help complete dollar transfers initially and later expand to multicurrency transfers and gradually cover its entire global branch network.

Wells Fargo has no plans to connect its DLT network with any other digital cash solutions in the financial services markets.

The company is said to have successfully tested the concept of money transfers between the United States and Canada.

Wells Fargo is introducing the service after acknowledging the importance of digitization of banking services in recent times. Also, it claims that DLT network will be a reusable enterprise utility through which it can build and deploy multiple DLT-based applications.

Lisa Frazier, head of the Innovation Group at Wells Fargo said, “We believe DLT holds promise for a variety of use cases, and we’re energized to take this significant step in applying the technology to banking in a material and scalable way. Wells Fargo Digital Cash has the potential to enable Wells Fargo to remove barriers to real-time financial interactions across multiple accounts in multiple marketplaces around the world.”

The company expects the platform to achieve near real-time money movement without impacting the underlying account, transaction postings or reconcilement infrastructure with international transactions.

In six months’ time, shares of Wells Fargo have lost 5.1% against 3.4% growth recorded by the industry.

Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Washington Federal WAFD has witnessed slight upward estimate revision over the past 60 days. Also, the company’s shares have risen nearly 28% in the past six months. It has a Zacks Rank #2 (Buy) at present.

Live Oak Bancshares’ LOB earnings estimates for the current year have been revised 16% upward over the past 60 days. Also, the company’s shares have risen 26.9% in the past six months. It carries a Zacks Rank #2.

The Zacks Consensus Estimate for First Bancorp’s FBNC earnings for the current year has been revised 2.3% upward over the past 60 days. Also, the company’s shares have risen nearly 2% in the past six months. It currently carries a Zacks Rank of 2.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Washington Federal, Inc. (WAFD) : Free Stock Analysis Report
 
First Bancorp (FBNC) : Free Stock Analysis Report
 
Live Oak Bancshares, Inc. (LOB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research