Financial Technology, or Fintech, has revolutionised the financial services industry by offering financial solutions that are consumer friendly, efficient, easy-to-use, and are often infinitely cheaper than traditional financial services.
Fintech is often described as a development which has disrupted existing financial systems. What does this mean? According to Financier Worldwide, it simply means that where, in the past, banks have held all of the power with regard to payment systems, they are now no longer able to maintain their ‘vice-like’ grip because advances in technology have managed to undermine the actual nature of these payment systems and many other services previously offered by traditional banks. Fintech has given power to depositors, borrowers, investors, importers and exporters by offering them services that are more convenient, simpler, instant, and cheaper than anything that traditional banks have been able to offer.
Fintech has disrupted the finance industry by offering more attractive exchange rates, by bypassing the middleman, by giving consumers easy access to products and services online. Essentially Fintech advancements are a real game changer as they are saving people both time and money.
One of the main sectors that Fintech has managed to disrupt is the import/export industry. This is because companies have become more knowledgeable when it comes to using technology to compare goods and services online, and it’s easier to look beyond borders for the best deals. Fintech has had a huge influence on global online trade and cross-border e-commerce. Nowadays its commonplace for people to pay for goods and services around the world without even stepping into a bank.
As we know, an import/export business is one that trades goods and commodities cross-countries and so relies heavily on foreign exchange rates and transfers. This can make importing and exporting a risky business because these businesses are constantly at the whim of a highly unpredictable marketplace. Importers and exporters are constantly exposed to currency risks because of changes in interest and inflation rates. It becomes incredibly inconvenient for them to rely on banks for their Forex needs because banks do not specialise in Forex, they are more expensive, and they are not always up-to-date with the current exchange rates and are very often very slow. With Fintech, these businesses are able to rely on alternative financial providers like ForexPeople.
ForexPeople creates personalised solutions for importers and exporters and we are always on the lookout for preferential exchange rates and bank fees for our clients. We get to understand what you do, what makes your business tick and how best we can help you overcome your specific forex challenges.
At ForexPeople we have truly embraced Fintech. It enables us to make our clients’ lives simpler and we do it swiftly. Watch this space – exciting developments, coming soon.
For more information about ForexPeople, you can visit our site here.