Traditional banks have come under increased scrutiny, and competition, in one of their most cherished markets – forex.
A market reckoned to be worth more than R15 billion a year to the banks is facing stiff headwinds from local fintech innovators like Future Forex. The company is successfully redefining the standards in the international money transfer industry, introducing a level of cost transparency and client service rarely seen before in SA.
It seems astonishing that banks still charge 2-3% on every payment that crosses the border, but that’s a situation that has remained more or less unchanged for decades. “Banks have normalised high fees for far too long, and we’re here to challenge that,” says Harry Scherzer, CEO of Future Forex and a qualified actuary.
In an era where technology has simplified so many other transactions, why are international transfers still so expensive and cumbersome? Future Forex has proved that individuals and businesses are paying 30-50% more than they should per US dollar, euro, pound and so on purchased from the banks, and the rand’s volatility only adds to the burden.
But why are bank fees so high?
“For one thing, it’s difficult for most customers to work out exactly how much they’re being charged by the banks because they often obscure their exorbitant profit margins through complex pricing models. We spend a lot of time educating our clients about how these fees are structured,” says Scherzer.
While banks may highlight smaller charges like SWIFT fees (R500-R1 000) or “admin” and “commission” costs, the bulk of the expense lies in the hidden exchange rate spread – the gap between buy and sell rates. A Moneyweb analysis reveals that spreads at SA’s five largest banks range from 1.8% to 2.6%, often exceeding 3% during market volatility. These inconsistent, hidden margins leave customers unaware of the true cost of their transactions.
Future Forex is disrupting this model, reducing costs by up to 50% for individuals and 30% for businesses. By leveraging advanced technology and its economies of scale, the company offers rates that consistently outshine those offered by traditional banks, all while providing a premium, white-glove service.
For individuals purchasing property overseas or investing offshore, these savings can greatly contribute to their long-term goals. Small and medium enterprises (SMEs) also reap the benefits, with 30% savings providing crucial capital for growth. “Over time, these savings make a significant impact, especially for businesses with regular international transactions,” Scherzer notes.
Amid mounting economic pressures in SA, the case for a better alternative is stronger than ever. Traditional forex fees continue to weigh heavily on everything from offshore investments and tax emigration to estate planning and import/export payments.
Technology meets personalised support
Future Forex offers an all-in-one service, combining competitive rates, full transparency, expert guidance, and a platform that streamlines the entire process. “This is the kind of innovation the market has been looking for,” Scherzer says.
Unlike traditional banks that leave clients stuck in frustrating call centre loops and chatbot dead ends, Future Forex’s award-winning solution blends cutting-edge technology with a human touch. “What puts us ahead of the competition in our opinion is that we allocate a dedicated account manager to each client as soon as they sign up – so they receive personalised guidance at every step, from compliance assistance to tracking the status of their transactions. Having an expert who understands your unique personal or business forex requirements makes all the difference.”
For those who prefer a hands-on approach, the Future Forex web and mobile app (accessible online or on Apple and Google Play) offers a sleek interface to book transactions, track payments, and upload documents in minutes, cutting through the red tape of traditional banking.
Simplifying regulatory compliance
South Africa’s strict exchange controls only add to the complexities of international money transfers, but Future Forex handles this seamlessly – and at no additional cost.
The company manages compliance with the South African Revenue Service (Sars) and South African Reserve Bank (Sarb), securing approvals like Advanced Payment Notification (APN) numbers and Approval of International Transfer (AIT) applications. This ensures clients can focus on their transfers without getting bogged down in regulatory complexities.
The savings, simplicity, and superior service that Future Forex offers are undeniable. Why keep paying the banks’ premium when there’s a smarter alternative?
Contact
Future Forex can be contacted via email or by phone at 021 518 0558. For more information, go to Personal Forex or Business Forex.
Brought to you by Future Forex.
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