Despite the end of COVID-19 being in sight in Australia, the economic fallout here and overseas will likely take much longer. For businesses who trade globally, these are still difficult times. FIN-PAY FX is helping by dramatically cutting the time, cost and headaches of foreign currency transactions.
COVID-19 adds more pain
While international people movements have ground to a near halt, the movement of goods and money has continued during the pandemic, albeit slowing in areas like the USA and Europe.
With high fees, limited choice, low service levels and inefficient legacy systems, foreign exchange can be a painful and expensive process. With the added pressure of COVID-19, for many the pain became unbearable.
Frustrated and hamstrung
Traditionally, small to medium-sized businesses have had little choice.
They’d have to approach the same major banks or brokers that global enterprises use, yet have the disadvantage of limited leverage. They’d have to accept standard products and charges, cumbersome processes and zero visibility or flexibility. This left many business bosses feeling frustrated and hamstrung.
“For a company with FX turnover of $300 million, we’re talking about $75,000-100,000 in fees they’d have no choice but to swallow.”Ian Parke, Technology Founder, FIN-PAY
Ian Parke, Technology Founder of FIN-PAY FX, says that the majors’ fees can be $10-$15 per transaction plus 11-17% of the value. ‘For a company with FX turnover of $300 million, we’re talking about $75,000-100,000 in fees they’d have no choice but to swallow. The majors would just say ‘it is what it is’. We knew we had to do something.’
First purpose-built platform
They did. Parke and his mates made the decision just over a year ago. Having worked in foreign exchange for enterprises, start-ups, financial services, even a unicorn, they’d felt firsthand the pain of foreign exchange inefficiency and cost. They knew it was time for a complete system overhaul.
As a result, they’ve developed the first purpose-built, friction-free platform designed to cut the time and cost of global payments, especially across borders, multiple mediums or platforms. For small to medium-sized traders on global markets, it’s a real game-changer.
“Sure, our platform is smart, but our people make a big difference. We want to help businesses grow, so we start with what they want to achieve, not what our products do. It’s all about helping them grow.”Ian Parke, Technology Founder, FIN-PAY
Service part of the deal
FIN-PAY FX is not just a technology; expertise and service back up the platform.
Businesses can choose the exact products for their needs, have complete visibility into how the system works and even get access to dealers on a daily basis. It’s the polar opposite of dealing with a major bank or broker.
As Parke says ‘Sure, our platform is smart, but our people make a big difference. We want to help businesses grow, so we start with what they want to achieve, not what our products do. It’s all about helping them grow’. With FIN-PAY FX, education, openness and support are very much a part of the deal; quite the opposite of the usual experience.
What about COVID-19?
During the crisis, the extra pain was obvious. For businesses with reduced trade, the fixed fees became an even greater burden, ultimately impacting on their ability to retain staff or maintain operations.
“We’re far more interested in the volume play here. If we can make a tiny margin on a huge number of transactions, we’re content. We’re not greedy.”Ian Parke, Technology Founder, FIN-PAY
FIN-PAY FX had a simple solution: cut out all fees and on-boarding costs and just charge clients the spread or margin. That’s the few cents difference between the inter-banking rates. For the same $300 million example above, it would cut out that $75,000-100,000 lump. A nice bit of change in tough times.
As Parke says, ‘We’re far more interested in the volume play here. If we can make a tiny margin on a huge number of transactions, we’re content. We’re not greedy’.
What about post-COVID-19?
With FIN-PAY FX’s business growing strongly despite the crisis, the company has decided to make its fee freeze permanent. This makes FIN-PAY FX even more attractive as an alternative to the majors in the long-term too. This is sure to keep new clients knocking FIN-PAY FX’s door down.
Parke says: ‘This is a highly scalable and sustainable model for us. With offices in Australia, Hong Kong and the UK, we’ve recently opened in Canada and UAE is next. We’re sure this is the right solution for now and for the future in FX’.
Find out more at https://finpay.com.au/.