Whether out of habit, or unfamiliarity, many customers assume that banks are the safest bet and most reliable option when sending money abroad. Yet, if you’ve ever attempted it, you’ve likely encountered the nuisance, high costs, opaque procedures and sluggish delays that have long characterised the experience.
Today, challenger institutions are outpacing traditional banks because they harness technology that enables swift and seamless transfers, turning what once seemed impossible into a reality.
Fintechs are fast becoming the preferred choice for moving money internationally, thanks to their swift processing, cost efficiency and user-centric innovation.
Here are some ways fintechs are helping to simplify international money transfers:
Transparent costs
Fintech platforms offer real-time exchange rate tracking, which allows clients to monitor currency fluctuations and lock in the best possible rate. Most importantly, they disclose their fees upfront and with full transparency, which eliminates the guesswork and hidden costs that typically come with traditional banking systems.
While the banks typically disclose certain smaller charges, like SWIFT fees, the real expensesting lies hidden in the spread.
“Bank customers typically don’t know how much they’re being charged,” explains Harry Scherzer, CEO of Future Forex. “That’s because banks don’t disclose the spread fee being applied to their transactions – the difference between the rate at which a bank or provider will buy a currency and the rate at which they’ll sell it. This is an exorbitant profit margin for the banks.”
Fintechs, though, tend to offer tighter spreads, closer to the mid-market rate (also known as the “true” exchange rate you might see on Google) and more transparency, which is why they’re gaining so much traction. It’s much easier to plan for your transactions when you know exactly what you’re being charged upfront.
Adding up
With growing awareness of banks’ hefty forex fees, both individuals and businesses understand that saving 30–50% on their transactions—amplified by the power of compounding—can significantly grow the amount of funds they have at their disposal over time.
For individuals investing offshore, these savings can translate into thousands of rands as returns build on returns. The same is true for businesses, who can reinvest these savings back into the business to grow and scale their operations.
No more paperwork
One of the standout innovations in fintech is the automation and user-friendly technology that puts customers in the driver’s seat. Mobile apps and digital platforms now allow clients to instantly book their forex transactions, track payments in real-time, and upload supporting documents, without ever needing to enter the same information twice. Intelligent systems automatically populate recurring details, eliminating the tedious repetition and paperwork that paper-based banking systems still rely on. By removing these frictions, fintech makes cross-border transactions not only faster and more secure, but genuinely easy.
The human touch
While embracing technology, leading providers maintain a human touch, offering expert-led support and dedicated account managers to address complex queries or regulatory requirements. This blend of cutting-edge technology and personalised service ensures customers receive efficient, reliable, and trustworthy international transfer solutions.
Some companies pride themselves on expert-led support from dedicated specialists who handle every step of the process and address any transfer issues. Whether it’s a delayed payment to the US to help with tax emigration, or a question about rates, customers should get dedicated assistance from humans, not just chatbots.
Scherzer says clients would have more faith in a system that allows them to direct queries or updates to their dedicated account manager, avoiding impersonal call centres. “Customers should also look for a foreign exchange provider that handles all your regulatory requirements at no extra cost, including SARB approvals and Approval of International Transfer (AIT) applications for individuals sending over R1 million abroad,” he explains.
“Once onboarded, the provider should manage all logistics, including regulatory compliance and balance of payment submissions, while staying fully transparent about costs.”
Business made easy
Fintechs streamline international transactions with intuitive interfaces and rapid processing. This is being powered by advanced technology that ensures funds move quickly and securely.
For customers, fintechs offer more than convenience, efficiency and cost savings, Scherzer concludes.
“Whether you’re an exporter in Durban, diversifying your portfolio with assets in Frankfurt or finalising a property deal in Sydney, you deserve control and clarity over your international money transfer. Fintech innovation now brings a level of speed and flexibility that is unmatched by traditional banking.”