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 goods suppliers, and specialized PPE manufacturers, just to name a few, have all experienced an unexpected boost in sales: Will that growth sustains? 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?
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.
Banks usually have less competitive foreign currency exchange rates than fintech due to their traditional banking systems. Fintech focuses 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. Fintechs 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 grow their transaction volume – something a bank cannot do easily.
Some fintech 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.
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.
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 offer vendor-preferred payment types like pre-authorized debits, wires, EFTs, 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.
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 forward contracts and market orders that are customized specifically for your business needs.
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.
Open an account with MTFX today and start enjoying fast, cost-effective, and convenient international money transfers.
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