Cape Town - The foreign exchange market is set to be even more volatile in 2017 than before, according to Richard Beddow, CEO of ForexPeople.
Just like the rest of the banking world, foreign exchange services are being shaken up thanks to the rise of financial technology (fintech) players. Fintech is disrupting and disintermediating traditional financial institutions such as banks, in the same way that Uber overhauled the taxi industry, in his view.
"New lean and agile forex intermediaries can help businesses and individuals mitigate their foreign exchange risk by doing things differently, harnessing the power of technology and using new business models," said Beddow.
"In the past customers have used banks for all their finance needs, but they are quickly realising the benefit of using new, specialist financial services companies."
In South Africa, a legitimate compliance and regulatory framework, set up by the SA Reserve Bank (SARB) in 2012, stipulates the conditions that an intermediary has to adhere to. In addition to SARB, the Financial Services Board (FSB) and the Financial Intelligence Centre (FIC) also regulate the forex intermediary industry.