Before fintechs transformed the international payment landscape, sending money abroad required a physical trip to the bank – or navigating a frustrating online portal – a barrage of paperwork, and detailed justifications.
Transactions then trudged through the SWIFT network’s antiquated framework, slowed by intermediary banks, and took days before reaching their destination. Errors like incorrect BoP codes were a nightmare to resolve, with no real-time tracking offering clarity. And when forex payments finally cleared, murky exchange rates and hefty fees would have carved a chunk of the original amount.
This inefficiency is in stark contrast to the seamless, tech-driven and customer-centric solutions on offer today. Still, the evolution of forex transfers started at a crawl and then exploded. In the space of two decades, the outdated traditional international payment system, rooted in Mesopotamia and ancient Greece, was flipped on its head.
Through proprietary systems optimised for speed, fintechs like Future Forex operating in the international payment space have leveraged advanced technology and automation to deliver a superior customer experience. These disruptors have reshaped forex transfers, outpacing traditional banks with innovative, user-friendly solutions that prioritise speed, transparency, and convenience.
Of dots and dashes
The high-tech world of digital forex transfers and new digital currencies originated in the Second Industrial Revolution, a period of explosive innovation that reshaped communication and finance.
In 1871, Western Union, which started 20 years previously as a telegraph company, launched a forex transfer service allowing rapid cross-border payments across the US, also known as electronic funds transfers (EFTs). This marked a shift from merchant-focused forex transfers to services accessible by ordinary consumers.
Fast, then slow
Since 1973, banks have dominated under the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system.
SWIFT was a leap forward in wiring funds because it standardised communication and transaction processes between banks globally, replacing the patchwork of manual methods marked by inconsistencies and delays.
By providing a secure, uniform protocol for interbank messaging, SWIFT allowed banks to process cross-border payments more reliably. However, this dominance came with significant drawbacks. The SWIFT network tethered forex transfers to a slow and costly infrastructure, reliant on intermediary banks to relay funds from sender to recipient, tacking on unpredictable fees and inflating costs. As digital demands grew, SWIFT’s inefficiencies became striking, setting the stage for fintechs to come up with better alternatives.
New thinking
Technology is at the heart of this evolution. PayPal paved the way in the late 1990s, starting with domestic peer-to-peer payments before expanding to allow customers in multiple countries to send and receive money internationally through a digital wallet. Xoom focused on smaller forex transfers, Wise brought greater transparency and efficiency to the process, and Revolut broadened the offering with multi-currency accounts and instant, app-based currency exchanges.
At Future Forex, we’re bringing this global innovation to South Africa, offering swift, transparent, and secure forex solutions that help businesses and individuals move money across borders easily—while significantly reducing costs compared to traditional methods.
Personal touch
Where many banks still lean on manual compliance checks and paper trails, fintechs automate their processes, reducing human intervention and errors, and streamlining the forex transfer process with digital precision.
Some use algorithms to handle routing and documentation seamlessly. Others also offer dedicated account managers to provide personalised support and boost efficiency. The result? Cross-border transfers that are not only faster, but also cheaper and more accessible, breaking down traditional barriers in the international payments space.
The best of both worlds
Delivering an exceptional client experience is a core priority for our team at Future Forex. Our platform is built to be intuitive, efficient, and rich in functionality—enabling clients to track forex transfers and exchange rates in real time with ease.
But our user-friendly technology is only part of our solution. We combine this with white-glove support from a dedicated expert who guides clients through every step of their forex transfer, including managing all required SARS and SARB approvals at no extra cost. This hybrid approach not only offers clients peace of mind, but also simplifies compliance and turns a typically complex process into a clear, seamless experience.
By tackling the inefficiencies of traditional banks, we’re torching the old playbook, offering South Africans a swift, transparent and seamless solution to move their funds internationally.
Get in touch with one of our experts and explore how we can streamline your forex payments, saving you time and money in the process.
For more information on the rise of fintechs in international money transfers, read the full article on MSN.
