(14 February 2025 – Australia) Australia’s business foreign exchange (FX) market is undergoing a seismic shift, with over 30 percent of SMEs and commercial businesses switching FX providers in the past six months.
While traditional banks like ANZ, CBA, and Westpac continue to dominate, competition from fintechs such as Wise, OFX, and Ebury is intensifying, research from East & Partners shows. CBA has overtaken ANZ as the leading SME Spot FX provider for the first time, while NAB has solidified its dominance in risk management products, holding 88 percent wallet share in FX Options and 63.1 percent in Forward FX. With pricing dissatisfaction on the rise and businesses increasingly multibanking, the question remains—how will banks respond to retain and grow their FX relationships?
A major trend emerging from our latest research is the evolution of FX risk management strategies. Businesses continue to shift away from FX Options, with usage among upper commercial clients falling from 83 percent in 2022 to just 60 percent today, with the bulk of these only using the solution occasionally. At the same time, Forward FX engagement has hit record highs, with 50 percent of Micro businesses and 68 percent of SMEs now actively hedging.
CFOs, treasurers, and business owners are demanding greater flexibility, improved execution speed, and real-time FX insights – areas where banks must refine their offerings. Meanwhile, global uncertainty, from tariffs to China’s economic policy shifts, continues to influence FX flows, adding complexity to corporate hedging strategies.
For banks, the challenge is clear: adapting to evolving client expectations while defending market share. Success will depend on the ability to deliver smarter, AI-driven FX platforms, competitive spreads, and tailored risk solutions. The rise of digital execution, embedded finance, and blockchain-based settlement solutions presents both an opportunity and a threat—those who innovate will gain a competitive edge, while those who lag risk losing high-value clients.
Where does your bank stand in this shifting landscape? East & Partners’ upcoming Business FX – Australia report provides the insights needed to navigate these changes and capture new opportunities. Get in touch with us here to gain access