Have you created a post covid business plan - MTFX Blog
Have you created your post-covid business plan? 5 steps to protect you from rebounding market risk
In a post-pandemic world, businesses must account for unplanned shifts in the FX market, especially at the beginning of a global economic recovery. Currently, every company in the world is being faced with the same question: What is going to happen to my business when the pandemic is over?
Grocery stores, packaged good suppliers, and specialized PPE manufacturers, just to name a few, have all experienced an unexpected boost in sales: Will that growth sustain? Hotels and airlines have experienced unprecedented halts in demand: How long will it take for their business to bounce back? Then you look at cinemas and theaters that are trying to envision how the pandemic will permanently shift the way consumers experience entertainment.
When the pandemic ends, many companies will find that their business model is no longer feasible. How will your business cope?
Ultimately, planning for a post-pandemic world means answering three questions:
1) How does your business really make money? 2) Who/what customer type do you depend on to drive your business during recovery? 3) What will customer behaviour look like after the pandemic so you can have better financial planning practices in place?
Even though the pandemic is temporary, its impacts have created permanent structural shifts. To help shed some light on what to do in a post-pandemic world, follow these 5 steps from our market experts at MTFX.
1. Ensure your business has access to next-generation solutions to keep your business current with technology shifts, removing any payment transfer friction.
Banks usually have less competitive foreign currency exchange rates than fintech due to their traditional banking systems. Fintech’s focus on providing quick and easy money transfers while having the ability to provide low exchange rates and transfer options for every type and size of business. Fintech’s are agile and can adapt to shifts in the marketplace quickly, thus, making them able to develop and launch innovative solutions on a dime, supporting a company’s expansion targets and the ability to grow their transaction volume – something a bank cannot do easily.
2. To help recoup losses from the pandemic, implement a full 360° payments solution with direct integrations into your ERP and AR systems to create efficiencies and save money.
Some fintech’s are making seamless integration to the next level. The team at MTFX is first to market with an all-in-one seamless solution that can offer your business a set of products and services that integrate directly into your business's ERP and AR systems. This ability removes the need for manual intervention or payment reconciliation, reducing both time and costs for finance department staff. With this integration, powered by AI, machine learning, and biometrics technologies, you can reduce the number of overall payment failures, which result from inaccurate data input, that your business experiences, giving you a single view on all your company’s financial needs, transactions, and cash flow for better and more accurate fiscal planning.
3. Allow your business to grow across borders by taking the challenges out of the opening and managing foreign bank accounts.
New-age fintech solutions can reduce your business's FX exposure and improve your cash flow by having the ability to make payments and hold funds in local currencies that you can access at any time 24/7. Leaders in customer experience, like MTFX, can enable your business the ability to open and hold money in domestic multi-currency accounts across multiple currency types, removing the complexity of trying to open and manage multiple bank accounts across borders so you can grow your business in any market you require.
4. With everyone turning to digital alternatives overnight, ensure you have the right mix of payment choices in place for your vendors and your customers.
Agile fintech develops, both internally and through global network partnerships, an array of innovative payment solutions so you can provide your vendors and your end customers with payment choice and flexibility. This allows you to accept and provide many different payment types from customers as well as offering vendor preferred payment types like pre-authorized debits, wires, EFT’s, and credit cards. On top of this, fintech can also enable your business with next-generation digital payment solutions like mobile wallet payments through a simple API integration that banks and other third-party providers cannot offer.
5. With the economy only starting to reopen, the market will be challenging to manage. Implement FX risk management strategies to keep your cash flow safe.
Managing exposure to FX currency fluctuations is an additional level of due diligence any business owner needs to practice. Your cash flow is the lifeblood of your business, and you need to protect it from unfavorable shifts in the foreign exchange rate. Fintech can offer superior risk management solutions and hedging tools, compared to banks and financial institutions, including forwarding contracts and market orders that are customized specifically for your business needs.
At MTFX, our platform can help your business rebound from the impacts of COVID-19 and protect you from any volatility in a post-COVID world.
Learn more about how a third-party payment platform can help you retain your local customers and expand your international business. Contact one of our market experts at MTFX and we will show you how foreign exchange currency risk management can protect your business while increasing profits.
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Who can use the MTFX payment service?
Individuals and businesses who need to send money in foreign currency internationally can use MTFX’s services. The beneficiary of the transfer must have a bank account for the funds to be paid into.
Personal clients usually use our services to transfer money between their own accounts in two different countries.
Business clients usually use our services to transfer funds to suppliers, fund international operations, or repatriate overseas earnings.
Why should I use MTFX and not my own bank?
MTFX offers currency exchange rates that are 2-5% better than those offered by the banks. Personal clients usually save hundreds of dollars per transfer and for larger transfers, the savings can run into the thousands.
We also offer excellent customer service, dedicated currency specialists, and a 24/7 online platform with best-in-class technology that allows you to complete transfers from any device virtually anywhere in the world.
Business customers save with better currency exchange rates and proven solutions geared towards managing and mitigating foreign exchange risk. Our solutions include forward contracts, market orders, rate alert services, and much more - all backed by great technology and great people.
How do customers send funds to MTFX?
Funds can be transferred via wire transfer, Electronic Funds Transfer (EFT), or ACH payment services. MTFX maintains bank accounts in all major currencies with highly-rated banks. Our banking infrastructure ensures that you can transfer funds to us quickly and securely.
How long does it take MTFX to transfer funds?
Our global network of banking partners allows us to get funds to virtually anywhere in the world quickly and efficiently. Most wire transfers from MTFX will be received by your beneficiary within 24-48 hours. MTFX also offers same-day transfers that are almost instantaneous, as well as low-cost in-country payment services for your less urgent transfers. For further information please speak to one of our currency specialists.
Please read the following update before logging in to your MTFX online account
We have updated our online dealing system to provide you with better functionality, more unique tools and an overall enhanced client experience. MTFX Online 2.0 is now available for your dealing needs. You can begin using our enhanced online portal today.
Please note that the traditional portal will be available for use until MAY 30th 2021 at which point it will be decommissioned.