Since time immemorial, international commerce has necessitated some form of cross-border payment system. This began with simple bartering and evolved through the ages to money broking and traditional currency exchanges. By the late 1800s, the infrastructure for international wire transfers had advanced, laying the groundwork for widespread adoption. The development continued, and by 1973, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) was established, enhancing the security of global financial transactions.
Despite these improvements making the process of international payment more straightforward and convenient, the reality remains that such transactions can take days, if not weeks, to complete.
Nevertheless, a surge of innovation led by technology is transforming this landscape. Swift and user-friendly payment processes are being introduced, automating once lengthy procedures and thus fulfilling international money transfers’ role as facilitators of economic activity.
The problem with the status quo
Harry Scherzer, CEO of the fintech company Future Forex, believes that the transformation is overdue. As global business dynamics shift, the traditional slow pace of transactions is increasingly problematic.
“Global supply chains and international service providers must operate on strict timelines. Delays due to payment processing can cause significant disruptions,” Scherzer explains.
According to Scherzer, traditional banking institutions have little motivation to enhance their services for international money transfers, as their current model is highly profitable.
Why would they change a system that benefits them financially?
Change is here
However, companies like Future Forex are challenging this complacency in the financial industry.
“In today’s on-demand world, waiting on manual processing for international payments is no longer acceptable,” Scherzer asserts. Disruptive fintech firms are leveraging technology to revolutionize the sector, making processes more efficient and customer-friendly.
Future Forex, for instance, identified the potential for innovation and addressed it directly, pairing technological advancements with transparency and superior customer service to encourage clients to transition from traditional banks.
These independent entities are nimble, capable of implementing changes much more swiftly than their larger, more established counterparts. Scherzer cites the launch of their new online platform, executed in six months—a project that might have taken years in a conventional banking setup.
A business and economic enabler
With a growing competitive market, Scherzer anticipates rapid-fire innovations that will benefit a diverse range of customers and industries.
“In a world that demands efficiency, those who embrace bold innovation in international money transfers will ultimately prevail,” he concludes.
