Wealth managers and independent financial advisors (IFAs) in South Africa are turning away from the banks for forex due to the unsustainably high costs and impersonal service, says Future Forex CEO and qualified actuary Harry Scherzer.
“This is something that we have noticed over the last few years. Wealth managers have complained for years about the high costs of moving clients’ funds into and out of the country, because this can have a material effect on how much they’re able to save for their clients over time.
“Wealth managers are responsible for protecting and growing the wealth of their clients, and it’s extremely competitive.
“South Africans are seeking advisors with enhanced service offerings, and they want one that will fight for every cent they can save.”
One way to save money is through bypassing the banks when it comes to managing their clients’ international transactions.
“Through our unique partnership offering, we give wealth managers the benefit of our economies of scale so that we can drastically cut the costs of forex – all while giving them a far smoother experience than they get from the banks,” says Scherzer.
Banks typically charge 2-3% for routine forex transactions, but Future Forex has slashed this rate for clients of wealth managers by providing significantly reduced rates to their channel partners.
“Whether your client is looking to invest offshore, purchase property abroad, or settle a foreign estate or inheritance, the reduced margin can lead to significant savings, particularly when it comes to larger transfers,” says Scherzer.
“But it’s not just lower costs that wealth managers are looking for.
“They are looking for a truly personalised service that makes it as easy as possible to manage their client portfolios, which is where we have a distinct edge. Future Forex assigns each wealth manager or IFA a dedicated account manager who thoroughly understands their clients’ forex needs and gives them personalised assistance every step of the way, from ensuring compliance with forex regulations to tracking the status of transactions.
“Try getting personalised service with the banks and you’ll be disappointed,” he adds.
“You get routed to a call centre where you have to navigate through multiple options, or you get asked to send your request on a chat service. Imagine having to go through that process for multiple clients – it’s inefficient and frustrating.”
Future Forex has built its system with a combination of technology and personalised service, providing a hassle-free experience for wealth managers but at no extra cost to their clients.
The Future Forex mobile app also provides a seamless solution for wealth managers to oversee their clients’ accounts, download statements, track the status of their transactions and more – all from one intuitive platform.
The regulatory hurdles
Dealing with compliance and regulations imposed by the South African Revenue Service (Sars) is another constant headache for wealth managers, draining valuable time that could be better spent focusing on their clients’ other needs.
The Future Forex team takes care of all regulatory requirements such as Approval of International Transfer (AIT) applications as a complimentary service.
Then there are the bank’s outdated systems and manual processes. Sending funds abroad often involves endless paperwork and navigating hundreds of BoP (Balance of Payment) codes, turning a simple transaction into an unnecessarily time-consuming task. Future Forex’s fully automated systems eliminate the need for any additional admin or paperwork, while ensuring transactions can be processed as swiftly as possible.
A seamless partnership
“We’ve also streamlined the onboarding process to ensure wealth managers can easily integrate their clients into our system, providing a smooth and hassle-free experience from start to finish,” says Scherzer.
“We handle all the logistics involved in forex transactions, allowing wealth managers to focus on delivering exceptional service to their clients.”
Future Forex has modelled its service on companies like Revolut and Wise, which have started eating into the market share of the major banks’ forex business abroad. The company has won multiple awards for its blend of tech and personalised service.
“Our greatest strength is that the business is based on the human touch, always being accessible to clients and partners, while using technology to enhance the personal relationship,” says Scherzer.
“It’s time for a shakeup in the South African forex market – and that’s what we are doing.”
Contact
To explore partnership opportunities, Future Forex can be contacted via email or by phone at 021 518 0558. For more information go to Partnerships or Personal Forex.
Brought to you by Future Forex.
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