Putting the service back into ‘Financial Services’
Founded in 1998, well before Fintech had emerged as a moniker for disruptors in the finance industry, OFX (formerly OzForex) has been at the forefront of international money transfer services for nearly 20 years. From humble beginnings in a garage in Dee Why, the company has grown from an information only facility, providing up to the minute insights to the best available foreign exchange rates, to a global organisation, handling over $100B in transactions. Fuelled by a desire to ‘give Australians a fair go’ when it came to foreign exchange, the Company has consistently stuck to its ‘fair go’ and ‘great service’ roots.
Developing partnership networks with a panel of international banks has enabled OFX to gain scale, and expand from only servicing consumer clients to also servicing SMEs and even some large Corporates. Operating globally with offices based in six cities worldwide, OFX has established 159 bank accounts in a comprehensive global network, enabling the brand to trade across 55 currencies.
In stark contrast to the ‘revolution’ typically associated with the Fintech sector, OFX has established itself as a leading player in the currency transfer field by embracing a collaborative operation model. As CEO, Skander Malcolm, succinctly explains, “We are in the unique position of being ‘Frenemies’ with the banks. The key to success is via a strong collaboration with the very institutions that have traditionally handled the business. They still provide the infrastructure, we innovate the client experience. Ultimately, it’s a mutually beneficial arrangement.”
It’s this very collaboration that potentially signals the future of Fintech. Rather than entirely replacing the status quo, an army of ambitious start-ups are now finding themselves better placed to help reinvent it, by working closely with the traditional providers.
Looking ahead to 2018, expansion is the name of the game for the Australian-headquartered company, with North America and Asia representing key focus markets. OFX recorded a 69% turnover growth in Asia over the last half year of trade, while turnover in North America grew by 20%. Critical to this uplift is the rise of ecommerce globally, and a concurrent growth in online sellers requiring assistance with their global payments handling capabilities. OFX supports online sellers with the creation of virtual currency accounts, enabling them to trade freely in a wide range of different currencies, both sending and receiving payments, and then repatriating these funds when required – at competitive exchange rates.
Malcolm comments, “the rise of ecommerce giants like eBay, Amazon, Etsy, Shopify and Rakuten for example, have dramatically changed the needs of our SME customers. Where previously the concept of going global was perceived as inherently complex and fraught with regulatory pitfalls, now specialist providers are springing up to assist with the management of every aspect of global selling. While we partner with brands to help with currency, there are other companies assisting with tax and customs considerations, shipping and fulfilment, legal and beyond. It’s becoming less and less daunting for local retailers operating online with local reach to add an international dimension, with relative ease.”
At the heart of the OFX offering lies a relentless focus on a better customer experience. Recent product and technology investments have been prioritised around improving aspects that will save time and money for customers, as well as making it more secure. For example, recent developments include a move to the Cloud via AWS, new call management systems and improved fraud intelligence software. While other companies are moving away from the human touch, investing in chat bots and digital only access, OFX’s staff are located in the locations where customers live, and answer calls, emails and social media messages. They offer a level of service that is unrivalled in this sector, underpinned by practical support and advice. They understand the stress associated with international money transfers, and the need to be prompt, polite and efficient when handling stressed customers.
As Malcolm summarises, “The reasons behind each foreign money transfer vary greatly, but what they have in common is an extremely high level of importance to the customer. Whether you are distributing the proceeds of a deceased estate, placing a deposit on a second home, paying a supplier in another country or funding a much anticipated, once in a lifetime trip, these are all very personal and high emotional investment situations. Much is at stake. Our people take that into account when they are dealing with customers, they are masters of empathy but also highly astute, professional problem solvers.”
And this concentration on service has led to an NPS increase to 61 points (compared to negative digit scores for many of the leading Australian based financial services providers). Around 75% of OFX customers are happy to recommend the company to friends and family.
As Australian customer, Kerwyn Foo, comments: “Having an OFX account helps keep families like mine, spread across the world, closer in the sad times and the happy ones.”
