OzForex Limited
(ASX:OFX) CEO, Richard Kimber said, "You’ve probably read about fintech companies. Typically they’re small start-ups or emerging companies with a technology they’re looking to scale. But we’re a company that’s already scaled. We’ve been around for quite some time and we’re very much focused on technology. So we are also a technology business, very much focused on the financial services industry.
What we do is offer a solution to customers, both retail and small-to-medium enterprises. And what it is really is enabling international payments. The way that we do that is by connecting local payment networks. So in Australia, you can BPAY money to us and then we send it to your relatives in the US or Canada. We do it at an exchange rate that’s very competitive.
Our competitive advantage is really through the prices that we charge. The way that the pricing works is referred to as a spread, which is the difference between the Buy and the Sell. If you look at when you go to the airport, you’ll see the difference between the buy price and the sell price is about that wide. We offer an average margin of 56 basis points, which is around 0.5 percent. So that’s about eight times cheaper than using a bank. And it’s considerably cheaper than using the cash alternatives....."
