New Research Shows Small Businesses Lose Thousands Of Dollars In Foreign Exchange Fees
• Australian fintech launches free Currency Score ™ to address wasted exchange expenses for SMEs
Melbourne, Australia – July 08, 2021 – In 2020 UK SMEs paid 10 times more than businesses for their currencies (FX) when using their banks and wasted an average of £ 17,000 on their international payments according to the fintech company The fluidity.
Alarming research by Professor Harald Hau of the University of Geneva and other academics from the ECB and the IMF prompted founder Tony Crivelli to conduct his own research more broadly. Its findings revealed that, compared to large companies:
- SMEs lost an average of $ 32,500 in foreign exchange and international payments by making transactions only with their bank.
- $ 7,500 came from overpaid foreign exchange and mark-up charges and $ 25,000 from errors in the currency market.
- 83% of SMEs only use their bank for foreign currency and international payments.
- Only 9% had access to a system allowing them to monitor and control the impact of foreign exchange on their business.
The study, conducted in Australia, Canada, Europe, the UK and New Zealand, found that Australian SMEs lost the most to foreign exchange markets – an average of A $ 25,000. UK SMEs rank second (average loss of £ 17,000), followed by New Zealand (NZ $ 24,500) and Canada (CAD $ 23,000). Only European SMEs avoided huge losses due to the relative stability of the euro in 2020.
“2020 has been a terrible year for small businesses. Hidden currency losses are the last thing they need along with so many other challenges, ”said Tony Crivelli, Founder and CEO of Fluenccy. “We have decided to put an end to this problem once and for all. There is no reason for SMEs to lose so much on FX. “
To fight against unnecessary spending, Fluenccy has launched Currency Note, a new free tool that allows SMEs to see their effective exchange rate and compare it to a new industry benchmark and identify economies they often ignore.
Currency Score was designed for SMEs and start-ups who regularly use FX but don’t have the expertise or the time to analyze the impact on their bottom line. It measures their currency buying activity and provides a simple number just like a credit score.
A score of 500 out of 850 shows that they are doing quite well. Everything that follows indicates that they could do better.
By syncing and tracking 12 months of billing and payment data from Xero’s secure integration with Fluenccy’s proprietary algorithms, small businesses can see how effective they are at buying currency quickly, easily, and for free. . The currency score shows their bank’s currency margin, the average rate, and how much they could save. Instant charts in the full report make the data and possible losses easier to see and understand (but potentially harder to digest).
Companies have long had access to specialized software and expert services from in-house finance teams to achieve better exchange rates. Obtaining this kind of currency trading information for SMEs has so far been difficult. Tony Crivelli (CEO and Founder), with over 25 years of experience in cross-border payments for businesses and SMEs, wanted to level the playing field. He started Fluenccy and now SMEs can get both in one app .
Fluenccy dispels the myth that fluctuating exchange rates equalize and that only a business can access the best rates using a sophisticated foreign exchange strategy. The company is autonomous and independent; it does not sell or buy currency, and has no exclusive affiliation with currency providers. It just helps SMEs get a better rate.
For more information contact founder Tony Crivelli at [email protected]