Fintech takes on foreign exchange

Today, many companies are confronted with currency risk. The development of e-commerce has led companies of all sizes to become involved in international trade.

The current unstable international context makes this issue a real priority. Constant inflation, the energy crisis reinforced by the war in Ukraine, the explosion of interest rates has generated particularly significant exchange rate fluctuations in recent months.

Foreign currency appreciation is a threat for importers, and depreciation a risk for exporters. Companies must therefore learn to anticipate risk. Exchange rates are volatile, especially now, and this makes it necessary to use tools to limit the impact of this volatility on company’s results. Risk management can be an important competitive issue for companies, and SMEs have a real need for support in this area.

Fintech have therefore developed simplified tools to help them manage foreign exchange risk. These new companies offer solutions and software that enable companies to hedge in real time. Thanks to these fintech, you no longer need to call your advisor to validate a payment or coverage.

Customers can now, from their smartphone, manage their international payments in all currencies and independently manage their foreign exchange risk hedging strategy. These platforms provide access to data and exchange rates in real time and enable alert thresholds to be determined.