UK SMEs turning to FinTech sector for foreign exchange needs

A recent survey by currency transfer specialist World First has revealed that the majority of SMEs prefer dealing with FinTech (Financial Technology) companies than banks when it comes to foreign currency exchange. What benefits can businesses gain from using a specialist provider?

FinTech over banks

Of the 1,000 SMEs that participated in the survey, 87% stated that they receive a better foreign exchange service from FinTech providers than they do from traditional banks. From that group, 89% of the respondents would recommend a specialist service to fellow businesses, while only 35% would advise using a bank.

Why are SMEs switching?

The survey suggests some banks are not satisfying their SME customers’ needs. 94% of the respondents said they get a more tailored service with FinTech companies, while 88% cited a greater transparency on fees. The third most common reason for switching – given by 85% of the respondents – was that specialist providers have a better understanding of their company’s needs. When commenting on the study, World First CEO and Co-Founder Jonathan Quin said:

“Whilst SMEs have historically had to rely on the big banks for any sort of financial service, […] 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.”

Despite the positive reaction to the FinTech sector, 70% of the businesses surveyed admitted there was still more they could be doing to protect themselves against foreign market fluctuations.

Mr Quin highlighted that the upcoming EU referendum and US political elections could add to market uncertainty and create currency risks for growing businesses, making it more important than ever that they are aware and prepared for market volatility. Ethical Enforcement Agents like Dukes Bailiffs can help businesses maintain healthy finances, now and in the future, by recouping late invoices in a prompt and professional manner. If you’re a small business owner, contact Dukes today to find out more.