Fintechs Revolutionising Forex Market for SMEs Businesses

The CEO of Satago, a business finance company, Steven Renwick, describes how a new generation of FinTechs has surfaced to revolutionize the financing environment for SMEs.

There is no indication that the disruptive innovation aimed at releasing the grip of prevailing business paradigms will slow down. As the pioneers of the modern on-demand economy, Netflix, Amazon, Uber, and Airbnb have encouraged whole generations of tech-driven companies to question conventional wisdom.

But the financial services sector, which has long been in need of a drastic overhaul, has been reluctant to adopt—or maybe fast to reject—this kind of disruptive thinking.

However by offering quicker, less expensive, and more transparent alternatives to traditional banking, Revolut and Wise have completely changed the foreign exchange market. The Bank for International Settlements estimates its daily value to be $6.6 trillion, making it possibly the largest challenge to this bank-dominated market.

However, because of the complicated rules, several players have chosen not to enter the South African market. Future Forex fills this need by providing South African companies with a more intelligent, practical, and economical method of handling their foreign payments.

According to Trustpilot, consumers’ perceptions of these fintechs are far better than those of banks. Banks are finding it difficult to compete with more nimble fintechs like Revolut and Wise because of their antiquated systems, which were first created in the 1970s. With 30 million users compared to Wise’s 12.8 million, Revolut is obviously a serious threat.

The same is being done in South Africa by Future Forex, which combines cutting-edge technology with committed human account managers. Their account managers save clients considerable time, effectively serving as a business’s external currency department, while their technology results in much cheaper fees than the banks for small and medium enterprise (SME) transactions.

Future currency CEO Harry Scherzer, a certified actuary, says, “We have somewhat modelled our offering on these, as Revolution and Wise have made the banks somewhat redundant for payments and forex.”

“We provide a better service, especially for the South African market, because each client is assigned an account manager who will also help with regulatory compliance at no additional cost,” Harry says. Given our intricate exchange control laws, this is a tremendous help when it comes to overcoming the regulatory obstacles associated with forex in South Africa.

For SMEs, who sometimes pay excessive fees to banks for foreign exchange, this is a significant issue. Adhering to old techniques can result in substantial operational and time issues, as well as higher FX expenses for businesses. This has a significant impact on enterprises engaged in low-margin operations like imports and exports.

Better value for your money

The following are some advantages of making international transfers with Future Forex:

Regulatory compliance: At no additional cost, Future Forex streamlines the regulatory procedure by helping with Balance of Payment (BoP) code submissions, Advanced Payment Notification (APN) applications, South African Reserve Bank (Sarb) clearances, and any other necessary customs paperwork. Future Forex guarantees that companies stay compliant and prevent expensive delays, in contrast to traditional banks that could impose extra costs or allow you to handle these procedures alone.

Personalized service: Unlike Revolut’s tiered help or Wise’s self-serve approach, Future Forex assigns each client a specialized account manager. The account manager functions as an extension of your team and is knowledgeable about the nuances of your company. This removes the burden of interacting with banks and allows you to concentrate on expanding your company while our professionals manage the intricacies of international payments.

User-friendly technology: Future currency offers a smooth solution via its online and mobile app for companies who would rather handle their currency needs on their own. The software, which is compatible with iOS and Android, simplifies international payments by allowing companies to send and receive money, manage recipients, get statements, and more with just a few clicks.

Decreased currency costs: Future currency may save SMEs up to 30% when transferring funds overseas, even though it offers better service than dealing with a bank directly. The banks face harsh criticism for hiding their true fees behind astronomical spreads and lacking transparency in their foreign exchange pricing. In contrast, the price structure of Future Forex is clear and uncomplicated.

Focus on South African needs: Future Forex was created especially to solve the banks’ deficiencies (both high charges and impersonal service), and it allows payments in more than 15 currencies. The group has extensive knowledge of regulatory matters, SMEs’ unique concerns, and international money transfers.

“The SME sector is one of the markets we concentrate on, and you would be surprised how poorly their banks treat them,” Scherzer adds.

“SMEs are receiving truly white-glove service for the first time—a degree of efficiency and personalization that is unprecedented in traditional banking.”

“In addition, our drastically lowered rates enable companies to maximize their savings and put those funds back into their business.”

To be quite honest, we were really taken aback by how little the commercial finance sector had changed when they first began to examine the SME lending market. Even while traditional lenders now provide multi-channel delivery through online chat, instant messaging, tablets, and smartphones, the goods haven’t changed significantly in decades when you look below the surface of digital distribution.