Conventional banks are currently under increased scrutiny and facing fierce competition in a key area—forex.

This sector, boasting an annual value exceeding R15 billion for banks, is facing substantial challenges from local fintech disruptors like Future Forex. This innovative company is setting new standards in international money transfers, delivering unmatched cost transparency and customer service to South Africa.

It is quite astonishing that banks still charge 2-3% fees on every cross-border transaction, a practice that has persisted largely unaltered for decades. “Banks have normalized high fees for far too long, and we are here to change that,” remarks Harry Scherzer, CEO of Future Forex and a qualified actuary.

In today’s technological era, where most transactions have become simpler, why do international money transfers still incur high costs and complexity? Future Forex has shown that individuals and businesses are paying 30-50% more per US dollar, euro, pound, etc., than the rates offered by banks, particularly with the rand’s volatility exacerbating the situation.

But what contributes to these elevated bank fees?

“One significant issue is that many customers struggle to understand exactly what they are being charged by banks, as these often obscure their substantial profit margins through complicated pricing structures. We invest considerable effort into educating our clients about how these fees work,” explains Scherzer.

While banks may concentrate on minor fees like SWIFT charges (R500-R1,000) or ‘admin’ and ‘commission’ fees, the bulk of costs comes from the hidden exchange rate spread—the difference between buying and selling rates. An analysis by Moneyweb indicates that spreads at South Africa’s five largest banks vary from 1.8% to 2.6%, often exceeding 3% during turbulent market conditions. These inconsistent and concealed margins leave customers unaware of the true costs of their transactions.

Future Forex is transforming this model, reducing costs by up to 50% for individuals and 30% for businesses. By leveraging innovative technology and economies of scale, the company consistently provides more attractive rates than traditional banks while offering a premium, personalized service.

For individuals investing in overseas properties or making offshore investments, these savings can significantly enhance their long-term financial goals. Small and medium enterprises (SMEs) also see substantial benefits, with 30% savings providing crucial capital for growth. “Over time, these savings can have a profound impact, particularly for businesses that frequently engage in international transactions,” emphasizes Scherzer.

Given the mounting economic pressures in South Africa, the case for a better alternative has never been more compelling. Traditional forex fees continue to burden various aspects, from offshore investments and tax emigration to estate planning and import/export activities.

Integration of technology and personalized service

Future Forex offers a comprehensive service, combining competitive rates, full transparency, expert guidance, and a platform that simplifies the entire process. “This level of innovation is precisely what the market has been craving,” asserts Scherzer.

In contrast to traditional banks that leave clients to wade through frustrating call center mazes and chatbot dead ends, Future Forex’s award-winning approach merges cutting-edge technology with human support. “What sets us apart from our competitors is the assignment of a dedicated account manager to every client right from the beginning—providing personalized assistance at every step, from compliance aid to transaction status updates. Having an expert who understands your specific personal or business forex requirements makes a significant difference.”

For those who prefer a straightforward approach, the Future Forex web and mobile app (accessible online as well as on Apple and Google Play) features an intuitive interface for booking transactions, tracking payments, and uploading documents within minutes, bypassing the complexities of traditional banking.

Simplifying regulatory compliance

South Africa’s rigorous exchange controls add another layer of complexity to international money transfers, but Future Forex navigates this seamlessly at no additional cost.

The company manages compliance with the South African Revenue Service (SARS) and South African Reserve Bank (SARB), securing approvals such as Advanced Payment Notification (APN) numbers and Approval of International Transfer (AIT) applications. This allows clients to concentrate on their transfers without becoming entangled in regulatory hurdles.

The advantages of savings, simplicity, and outstanding service that Future Forex brings are evident. Why continue to pay banks’ inflated rates when there’s a smarter alternative available?

Contact

Future Forex can be contacted via email or by calling 021 518 0558. For more information, visit Personal Forex or Business Forex.

Brought to you by Future Forex.

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