Working with Orum vs. Direct to Bank to Simplify Instant Payouts

Here at Orum, we’ve spent years addressing our partners' biggest payment pain points. A common question we encounter is: “Why not work directly with Bank X?”

While going direct to a bank might seem simpler (and potentially cheaper), the reality is often quite different. Here’s a comparison between working directly with a bank and using Orum’s all-in-one platform for instant payouts.

Getting Started: Bank vs. Orum

With a bank: 

Before approaching a bank for direct integration, your company needs several resources to ensure compliance with complex banking rules: 

• A compliance program adhering to federal Bank Secrecy Act/Anti-Money Laundering laws (BSA/AML).
• Engineering teams to build and monitor financial software and products.
• Full-time employees and advisors to oversee infrastructure and compliance requirements.
• Depending on your use case, you may need to establish an FBO (For the Benefit Of) account, which incurs annual costs and monthly minimums.
• Multiple integrations for different payment rails based on the bank of your choice.

This process often involves months of negotiations and a lengthy legal review. The timeline can extend upwards of two years (or more), requiring continuous maintenance and compliance with evolving regulations. 

With Orum: 

Orum provides the simplest API integration for instant payouts. Our one-stop solution offers access to RTP, ACH, Same Day ACH, Wires, and FedNow. 

• Implement our unified API into your tech stack in two weeks or less, with some partners up and running in just two days.
• Save the typical $2 million and two-year investment required for traditional bank integrations.
• Partner with JPMorgan Chase & Co. and top payment experts to ensure platform stability and transaction delivery. 
• Assistance with BSA and AML compliance, including measures to avoid violations of KYC watchlists and other regulations.

For example, Public.com partnered with Orum to provide instant access to funds for its end users– helping it achieve its mission of making the public markets work for everyone ​by giving investors access to instant liquidity. We provided easy access to RTP that didn’t require Public.com to go through a costly bank integration, which allowed them to save on costs.

Learn More About Orum’s Unified API for Instant Payouts

Questions to consider when using Direct to Bank vs. Orum’s API

How much customization do I need?

Orum offers customization for key features and data optimization, which may not be available through direct bank integration. You can manage the user experience, tag transactions, add descriptors to account statements, and more.

How much time and money will I have to spend on direct bank requirements?

Direct integration requires hiring engineering and leadership teams to build and manage complex software for compliance. An FBO (for benefit) account typically incurs annual costs, monthly minimum balances, and other fees. The total cost and timeline could be about $2 million over two years.

What timeframe do I need to go live?

With Orum, you can launch in two weeks or less, skipping the extensive process of creating a compliance program and hiring teams for software development.  

Do I need instant payouts and access to real-time payments (RTP)? 

RTP allows U.S. domestic payments to be processed 24/7/365 with immediate settlement. 

Not all banks participate in RTP, and those that don’t may offer “same-day” ACH payments, which are less efficient. Orum provides access to RTP, ACH, Same Day ACH, Wires, and FedNow without costly integrations or prolonged compliance. 

Why Orum.io is the Smarter Choice

Choosing between working directly with a bank or partnering with Orum.io depends on your specific needs and resources. If you’re looking for a streamlined, cost-effective solution with rapid implementation and comprehensive support, Orum could be the right choice for you. 

Want to see how Orum stacks up? Compare Orum to Direct-to-Bank. If you have any questions or want to learn more about simplifying your money movement process, feel free to get in touch.