SMEs: FinTech Specialist Providers Deliver Better FX Service than Banks

When it comes to foreign exchange, UK’s small- and medium-sized enterprises (SMEs) receive better service from FinTech specialist providers than banks, says a recent study by currency specialists World First.

According to the survey of 1,006 senior decision makers at UK SMEs, nine out of 10 SMEs or 87 percent get better service from FinTech specialist providers.

The report, “Don’t Bank On It: The FinTech FX,” also found that 85 percent of study participants said specialist providers had a better understanding of their needs.

More SMEs felt specialist providers delivered a more tailored proposition and greater transparency on fees at 94 percent and 88 percent, respectively.

These findings suggest that UK banks are facing more competition from the FinTech sector, as the boom in the FinTech space has given birth to specialist providers posing threat to banks share of the FX market.

Lack of awareness, however, remains a major concern with 31 percent of SMEs having no idea of other providers aside from traditional banks.

Jonathan Quin, CEO and Co-Founder of World First, commented: “Whilst SMEs have historically had to rely on the big banks for any sort of financial service, genuine innovation and technological development from the FinTech sector has given rise to a wide range of truly compelling alternatives. This new breed of specialist providers are often better placed to serve the needs of SMEs than traditional banks, offering greater flexibility for the user, more transparent pricing and, ultimately, better value.”

With the currency market volatility likely to continue due to the impending EU referendum and US election, Mr. Quin called for more awareness of currency risks to SMEs and benefits of using FinTech specialist providers.