East & Partners Business Foreign Exchange Markets report (BFX) provides industry wide research structured on +/- 2,500 direct interviews with banks, brokers and FX providers. The program encompasses key market benchmarks across Lower Corporate, SME and Micro business segments.
With the increase in price discovery and the growing prominence of non-bank providers, the Foreign Exchange landscape is proving to be highly competitive, as the traditional Big Four banks try to hold on to market share in an area that customers across all segments perceive to be crucial in their banking needs.
While the Big Four Australian banks maintain a prominent share at the “big end” of town, they are seeing an alarming proportion of Micro and SME customers looking to non-bank providers for their foreign exchange requirements. Despite retaining a banking relationship, disrupters are managing to claw revenue away, offering a superior service proposition and a much more responsive relationship with their customers.
E&P’s BFX program is not limited to competitive analysis. It looks at broader customer behaviours such as hedging strategies and prominent currency requirements. This provides valuable insights for foreign exchange providers in how they develop their value proposition towards commercial customers.
Understanding the customer requirements enables providers to tailor their offering. There has been an increased demand for the Chinese Renminbi to be used for settlement amongst Australian businesses. This is set to grow from the current level of 15.0 percent as the currency is liberalised. These trends covered in E&P’s BFX program, allow foreign exchange providers to understand forward demand so that they can direct their strategies and be at the forefront of the market.
Now in its tenth year, the BFX program provides unparalleled trending data that tracks the momentum of customer behaviours. The historical data also allows for accurate forecasting as businesses navigate through the peaks and troughs of the economic cycle.
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