Today we’re very happy to present a guest post written by Daniel Abrahams, Managing Director of MyCurrencyTransfer.com:
CurrencyFair.com – the expat’s best friend
A good tech driven company solves a problem for the customer. However, a great tech company is one that not only solves a problem, but produces a product that a customer cannot live without. A must have rather than ‘nice to have.’ With the average customer referred from MyCurrencyTransfer.com having transacted 4.5 times with CurrencyFair, our research shows that CurrencyFair.com is becoming every expat’s best friend.
In our guest post, we will highlight five characteristics of a ‘winning’ tech company, and how from our own experiences of working with CurrencyFair, we feel they are well on the road to becoming a leading player in the money transfer space.
Solves a real problem for the customer
Firstly, CurrencyFair are in a space that is ripe for innovation and helping to clean up an opaque industry. Expats and SME’s are losing hundreds, if not thousands of pounds on making international payments. Often, through customer inertia or not shopping around, they tend to see banks as the only way of transferring money abroad. These losses are entirely unnecessary. When you go to a bank, you could be paying up to 5% more than you have to, through high margins (i.e. profit) banks apply to the real exchange rate. In real money terms, that is £5,000 on every £100,000 you transfer abroad. CurrencyFair are solving this problem via vastly superior, better-than-bank exchange rates.
A unique and different customer proposition
CurrencyFair is a 100% web-based, person-to-person marketplace where customers are able to take the best rate available or place their own and wait to be matched. This novel way of moving money abroad helps to substantially reduce the ‘fat’ and ‘built-in profit’ that exists when transacting with a high street bank. In every way, this is entirely different to transacting with a bank. When you trade with the bank, the relationship is extremely transactional. Banks will offer you a rate, and unless you are a big multi-national, if you don’t like it, you are left with little choice. No haggling – you like it or lump it! CurrencyFair is different. The service puts power back into the hands of the consumer and, in effect, is helping to democratize the sector.
A company that is loved by its users
Our analytics show the top user MyCurrencyTransfer has referred has traded a total of 35 times with CurrencyFair. Over 10 active users have traded over 20 times. On average our referred clients have traded over 4.5 times with CurrencyFair. In short, no one hit wonders. CurrencyFair is clearly building a company that is loved by its users.
It’s a lot easier to build a great company with loyal, repeat users than permanently relying on having to chase after the next new customer. Our data shows that once a visitor clicks through from MyCurrencyTransfer and performs a first trade with CurrencyFair, they are more often than not going to transact on a repeat basis. It’s therefore no surprise to see figures as high as 86% being ‘very disappointed’ if CurrencyFair were no longer around, and an 89% referral rate.
A company constantly improving & iterating
CurrencyFair has recently upgraded the interface on its marketplace, making the user experience to the point of execution a whole lot simpler and more efficient, whilst still enabling customers to achieve an exchange rate very close to, or even better than the ‘real’ market exchange rate. This puts the ‘average joe’ on a level playing field with institutional traders often transacting millions in FX per annum. Another example of the company helping to democratize the sector.
A company that lasts and is trusted
As a leading comparison website, it is important to partner with companies that have a proven track record. Our guiding principle as to who we list on the site is ‘would I trust this company with my own money transfer?’ From a regulatory standpoint, CurrencyFair ticks all the boxes vis-à-vis our vetting criteria. They are a fully regulated Authorised Payment Institution by the Central Bank of Ireland and ring fence customer money in segregated client accounts.
We think the next few years will see consolidation in the money transfer sector, with a number of small players falling by the wayside. From our very first conversations with CurrencyFair, we knew we were partnering with a well-funded, forward thinking company making a real footprint in the money transfer space.