TL;DR: Novacoat Canada's Financial Evolution with Finofo
The Challenge:
Novacoat Canada faced significant hurdles with their FX brokers in international transactions, grappling with manual conversions, extensive back-and-forth communications, and delayed transactions.
Finofo's Solution:
- Streamlined Transactions: Finofo's platform offered real-time conversions and payments, eliminating the delays and inefficiencies experienced with FX brokers.
- Global Transaction Ease: The ability to manage payments as if they were local entities globally.
- Consistent and Fair Exchange Rates: Novacoat benefited from Finofo's fixed spreads and exchange rates, bringing predictability to their international dealings.
Impactful Outcomes:
- Immediate Transaction Processing: A shift to real-time conversions and supplier payments.
- Enhanced Customer Experience: Finofo's focus on user needs ended the upselling pressure from brokers.
- Strategic Business Growth: Novacoat now invests more in their core business growth, free from broker dependencies
The Bottom Line:Novacoat Canada's partnership with Finofo marked a transition to efficient, prompt financial operations, facilitating smoother international transactions and empowering them to focus more effectively on business expansion and strategy.
Explore the complete case study in detail below:
Bumpy FX Brokers: Novacoat Canada's Transactional Turmoil
In the world of international business transactions, Novacoat Canada's journey highlights some critical operational challenges.
Our experience with FX brokers has been a significant pain point, Every international payment is a slow process. We have to contact them for a rate, either through email or phone, and then wait for them to execute the conversion and release the payment. What's more, the lack of robust technology, or the introduction of clunky, hard-to-use systems, has only added to the frustration, making what should be a simple transaction anything but efficient.
David Miller, Accounting Clerk at Novacoat Canada.
FX brokers, like those Novacoat Canada interacted with, typically follow a practice that can be disadvantageous for their clients. The exchange rate, which is constantly in flux, is not always handled in the customer's favor. If the rate shifts beneficially for the customer, brokers often do not pass on this improved rate. Conversely, if the exchange rate moves against the customer, they are likely to receive a less favorable rate. Additionally, these brokers do not offer real-time currency conversions, further complicating the process for businesses trying to navigate international transactions efficiently.
David further elaborates on the challenges with their FX brokers, shedding light on some questionable practices. "We've noticed inconsistencies in how they handle exchange rates," he states. "Despite having agreed upon certain rates, we often find that the rates charged are different, and not in our favor. It's as if the spread charged fluctuates, and there's a lack of transparency about their rates." This inconsistency adds an extra layer of complexity and mistrust in their financial dealings.
Moreover, David expresses frustration with the brokers' aggressive sales tactics. "They're constantly pushing us to buy hedging products, but they never clearly explain the benefits or the risks involved. We're not given enough information to understand why hedging is necessary for our specific situation," he adds. The lack of a customer-centric approach and the overwhelming pressure to engage in additional services reflect a disregard for the client's experience and needs.
The experience of Novacoat Canada with their FX brokers seems to reflect a common concern in the industry – that brokers often prioritize their profits over the business needs of their customers. This bias towards their own success often comes at the expense of the client's profits, as brokers may not always act in the best interest of their customers.
Finofo's Impact: Redefining Novacoat Canada's Financial Strategy
Finofo emerged as a pivotal solution for Novacoat Canada, revolutionizing their financial operations and significantly impacting their bottom line. Here's how:
Empowering Accounting Teams: Finofo's intervention marked a significant shift in how Novacoat Canada handled international payments. By providing a self-service platform, built on a foundation of modern technology infrastructure, Finofo not only eliminated previous delays but also offered real-time currency conversions. This upgrade granted the accounting team at Novacoat Canada enhanced control and heightened efficiency, revolutionizing their approach to financial transactions.
Global Account Flexibility: Finofo enabled Novacoat Canada to open multiple accounts in various jurisdictions. This flexibility allowed them to effortlessly convert and transfer funds between their Finofo accounts, facilitating smoother global transactions. For example, Novacoat Canada can now conveniently pay a supplier in Italy using a locally established EU bank account, enabling them to operate as seamlessly as a local entity in Italy.
Transparent and Consistent Rates: What sets Finofo apart is the use of an algorithmically determined, fixed spread and exchange rate. This is in direct contrast to the variable charges often imposed by brokers, which fluctuate based on market timings or the values of transactions. For Novacoat Canada, this consistency from Finofo has been a game-changer, ensuring predictable and equitable currency exchanges.
Advanced Technology for Efficiency: Finofo's robust technology platform enabled Novacoat Canada's team to manage a higher volume of transactions swiftly, enhancing their operational pace and capacity.
Focused on Customer Experience: With Finofo, there was no pressure of overselling or upselling. The emphasis was on customer satisfaction, smooth onboarding, and an easy setup process, creating a seamless experience.
Breaking Free: Novacoat Canada's Transformation with Finofo
With the strategic partnership with Finofo, Novacoat Canada has effectively navigated away from the pitfalls of broker-managed financial transactions. This move has not only saved them considerable amounts of money but also markedly enhanced their operational efficiency. Liberated from the inefficient and costly practices of brokers, Novacoat Canada is now empowered to make more strategic business decisions. The Finofo partnership symbolizes a significant leap forward, enabling Novacoat Canada to focus on their core business growth without the financial drag of profit-centric brokers.
