The financial sector has undergone huge changes in recent years, with the economic collapse in 2008 prompting a whole new approach. Traditionally known for being opaque, secretive and not giving customers the best deal, the financial services sector has had to get its act together.
Currency exchange companies such as Privalgo have been leading the way in reshaping the industry, offering customers a better experience. Based on trust and transparency, this new wave of financial firms has a different approach and deliver services that are competitive.
This is just the start, but what about the future? There’s far more to come from currency exchange companies as the sector continues to evolve. Here’s a look at what the future of currency exchange could hold.
More information and transparency
There’s already been a marked move from the best currency exchange firms to introduce more transparency. Modern customers are well informed and are gravitating towards companies that treat them as equals rather than trying to disguise the facts and hide behind jargon. The development of improved FinTech has made this new approach much easier to deliver.
Exchange rates have been one area which have historically been misleading, with banks and other companies adding considerable profit margins without customers knowing. New online portals allow customers to see the real exchange rate, and the markup that they are being charged.
This heightened visibility is set to continue, with technology putting customers in control. Greater automation and the ability to execute a wide variety of orders will benefit everyone, removing the routine tasks from currency exchange companies and allowing them to focus on delivering more specialised support and advice.
More expert firms
There’s a comfort in dealing with familiar firms, which is one of the reasons why historically, customers have turned to banks for their currency exchange needs. The ease of popping down to a local branch has also helped, making banks seem like a convenient choice.
However, the dwindling number of banks physically present on the high street has levelled the playing field, leaving customers more open to considering other online providers.
The high charges and poor exchange rates typically offered by banks have also been a factor. Currency exchange is just a small part of the financial services provided by banks; this contrasts to currency exchange firms who specialise solely in this sector. Dealing solely with currency exchange provides economies of scale, along with focused expertise. This allows currency firms to offer far more competitive exchange rate.
In addition to offering a better exchange rate with less of a markup, currency firms also charge little or no fees and a 24-hour service. Banks can charge as much as £30 for each transaction and the transfer can take four to six days to arrive.
In the future, there will be even more customers choosing to use currency exchange firms rather than traditional providers such as banks. Offering business services overseas and buying property abroad are likely to lead to an increased demand for currency exchange companies with the sector becoming more mainstream.
Cryptocurrencies such as bitcoin have dominated the headlines in recent years but they’re still very much a niche product. However, they are increasingly crossing over into the real world with reports of property being purchased using bitcoin.
An increasing number of services and products are accepting cryptocurrencies; some casinos even allow customers to gamble using bitcoins.
This also extends to currency exchange. It’s very much in its infancy right now but there are a small number of providers who are able to accept bitcoin and other cryptocurrencies to buy foreign currency. In the future, this is set to rapidly increase right across the sector, with currency exchange routinely involving cryptocurrencies.
Bitcoin is not yet recognised as an official currency and there has been much debate about how it should be categorised. Some sources suggest that cryptocurrencies are the future and will replace fiat money (paper money) as the technology improves.
If this does transpire, it’s likely to be a long way off, and in the meantime there will be heightened demand to be able to exchange cryptocurrency for other currencies. Currency exchange firms will be able to facilitate this using the FinTech which is already an integral part of the industry and rapidly evolving.
Currency exchange will continue to be an essential service in the future, with businesses increasingly operating internationally and travel an integral part of life experience. There have already been emerging signs of improved technology and this is set to continue to evolve and develop, providing customers with new services they can rely on.