how does a correspondent bank add value 
in transactions that require their use the correspondent bank adds value in two ways it alleviates the need for the domestic bank to establish a physical presence abroad and saves the work of setting up direct arrangements with other financial institutions around the world the bottom linea correspondent bank is an authorized financial institution that provides third party services on behalf of another financial institution that s usually in another country correspondent bank services may include funds transfer settlement check clearing wire transfers and more domestic banks can serve their international clients and gain access to foreign financial markets by using correspondent banks rather than setting up their own branches overseas 