Corporate & Commercial

Transactional FX and International Money Transfers: A Strategic Pricing Approach to (Re)Capture Market Share

Sibos 2019 blog series

The global cross-border payments and international money transfers market is attracting a lot of attention these days. Strong growth and rapidly changing market dynamics represent a challenge and an opportunity for banks.

Emerging non-bank competitors. Non-bank providers, like TransferWise, are snapping up market share with competitive pricing, greater transparency and simple user interfaces.  According to Accenture, as much as 15% of banks’ global payments revenue is at risk. Banks must adapt their product and delivery strategies to stay in the game and capture their fair share of the category’s projected CAGR of 5.5% (from 2019 to 2025). 

Intensifying regulatory scrutiny.  Regulators across the globe are requiring greater transparency for FX transactions. In the UK, the Financial Conduct Authority (FCA) has revised its policies to support standardized pricing disclosures and ensure more robust competition. In Australia, the Australian Competition & Consumer Commission (ACCC)opens PDF file is taking steps to increase competition and make FX rates and fees more transparent for commercial and retail consumers.

By externalizing your bank’s FX pricing capabilities from core systems, Zafin’s product and pricing control solutions give banks the flexibility, precision and rigor to respond to competitive pressures and regulatory mandates, positioning you to capture share in the cross-border payments market.

  • Offer more compelling pricing for FX rates and fees.
  • Motivate clients to increase their volumes with discounts, incentives and other benefits  based on exchange volumes for international money transfers.
  • Drive client acquisition by targeting promotional offers to specific market segments.
  • Add value by linking cross-border payments to your bank’s broader product and service value proposition.
  • Comply with regulatory requirements with immediate, automated substantiation of pricing. 
  • Assure fair outcomes for all clients and full compliance with contractual commitments.

Heading to Sibos 2019 in London? Interested in learning more about how you can respond to evolving dynamics in the international money transfer market? Book a meeting with the Zafin team.