Government and banks must understand the motivation of FinTechs in order to tap into this growing opportunity
London, 3rd August 2015 – As news emerges on an almost daily basis of banking groups focusing on the FinTech opportunity, as well as the UK Government appointing a FinTech special envoy, global transactions services provider, Saxo Payments, welcomes the interest in banking market disruptors.
Anders la Cour, Chief Executive Officer of Saxo Payments, which was founded in 2013 comments:
“There seems to be a growing appetite amongst the traditional banks to get involved in the FinTech sector, with a genuine interest in extending their services to deliver better value for customers. With Barclays one of the most recent to demonstrate interest in the sector with its global support hub, as well as the UK Government recognising the significance of these disruptors for the global economy with the appointment of a FinTech special envoy, I think the key is to understand what needs to be delivered to empower the disruptors to be successful.
“The new generation of non-banks work because they look for a gap or a failing in the current offering and develop a solution that is carefully and expertly designed to meet that need, underpinned by a high-quality service. Because they are so focused on their one specific niche, they are able to invest fully in that one offering and do it exceptionally well. But they need conventional banking processes to keep up with them.”
The Saxo Payments Banking Circle is providing a valuable platform for many FinTech disruptors. Counting First Data, Tuxedo Money Solutions, and Valitor amongst its first members, it is a global transaction hub which facilitates international transfers via domestic banking accounts in separate countries and for separate currencies. Saxo Payments provides businesses with access to a global account infrastructure, combined with a competitive FX solution operated on a fully secure and compliant clouded Oracle-based banking platform.
The Saxo Payments Banking Circle mitigates the prohibitively expensive traditional banking fees – often around 5% per transaction – and cuts out the unfathomable time usually incurred for funds transfer. The result is that payments providers can enable their merchants to perform cross border transfers through the Banking Circle, often instantly, irrespective of the geographical location of the recipient.