Muddled multi-currency: how do fintech’s overcome cross border complexity?
Benefits, challenges and opportunities for fintechs offering multi-currency and FX
This report analyses the multi-currency landscape based on a survey of 150 UK fintech executives. It presents findings on the use, value, and difficulties of running multi-currency services, as well as the reasons for providing them. It also examines challenges and suggests ways to overcome them.
Key insights
Time is money
Over 35% of fintechs had to wait up to nine months for the implementation of multi-currency services. Due to the monopoly of multi-currency service providers, some fintechs are looking for innovative solutions to overcome these challenges.
The revenue challenge
Generating revenue from multi-currency transactions can be challenging for fintechs due to low margins and limited transaction volumes. Despite transaction fees being a source of revenue, 57% of fintechs report a profit margin of only 3-5% on multi-currency transactions, with 28% experiencing a decrease in profit margins over the last three years, which makes it difficult for fintechs to justify their investment.
The future of multi-currency providers
79% of fintechs are planning to move to a new multi-currency partner, with 32% seeking better customer experience and 34% seeking better technology. Providers must adapt their offerings to the needs of fintech’s post-pandemic world.
Major concerns for multi-currency offerings
According to a survey, 32% of respondents found hidden costs from their current provider. In comparison, a staggering 87% found it quite or very expensive to run their current multi-currency offering. This is a major concern for many companies in the industry, as they strive to provide cost-effective solutions while meeting the diverse needs of their customers.
How does technology affect multi-currency offerings?
Implementation speed
Advanced technology can significantly reduce the time required to set up multi-currency services. Traditional setups can take up to nine months, but more innovative solutions can expedite this process.
API intergration
The ability to automate money flows through APIs is essential for seamless operations. However, 23% of fintechs reported that their current providers lack this capability, limiting their ability to offer efficient and innovative services.
Cost efficiency
Better technology can help reduce hidden costs and operational expenses. Fintechs are looking for solutions that offer transparency and lower costs, which are often achievable through more advanced technological platforms.
User experience
Technology affects the ease and flexibility of multi-currency services. Fintechs need platforms that provide real-time views of balances, the ability to hold multiple virtual accounts, and a single view across all accounts for better treasury management.
Multi-currency propositions have been driven by demand
From a survey of 150 C-level and senior fintech executives
"It is paramount that fintechs are set up to succeed with the best technology that will allow them to deliver this effectively. This research should act as a guide to fintechs on exactly what others in the market are looking for. And, as a warning to providers to make sure they’re doing all they can to support multi-currency going forwards.”
Discover how 150 C-level and senior fintech executives are delivering their multi-currency offering
Learn more about the multi-currency landscape
About Censuswide
Censuswide is an international market research consultancy headquartered in London, with offices in New York, Dubai, Bristol, and Glasgow. Thir research supports insights, communication, PR and marketing teams across consumer, B2B/Corporate and Healthcare sectors. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.
Ready to collaborate?
Experience the ClearBank difference and begin your journey today.