In this customer story, we’ll look at the challenges faced, the solutions we provided, and the impact Finofo had on their global finance operations.

We've opened a local Euro account to pay our suppliers in real-time without wire fees. It feels like we've achieved financial freedom in global payments.

James Carter, Finance Controller at Zity Inc.

The Challenge

Zity Inc. is a rapidly growing subsidiary in the manufacturing sector based in Ontario, Canada, with its parent company located in the USA. Zity Inc. specializes in manufacturing semiconductors and hardware for supercomputers.

Accounts Payable

The company faced significant challenges in managing funds between its Canadian and US entities and streamlining internal payments to suppliers worldwide.

Brandon, the Controller at Zity Inc., explains the difficulties: "We have many global suppliers in Europe but couldn't open a Euro (EUR) account with our bank. As a result, we paid unfavorable exchange rates and couldn't hold funds in an account to pay our suppliers on time."

He continues, "We wanted to convert a bulk of CAD and USD to EUR and hold them in a local account to pay our suppliers."

Accounts Receivable

Additionally, receiving money from US customers was problematic. Zity Inc. incurred wire fees each time they received payments from the US. Intra-company transfers with their parent company also faced delays and additional wire fees, complicating their financial operations further. A more significant issue was that customers had to pay wire fees every time they made a payment to Zity Inc., which was frustrating for customers.

These challenges hindered Zity Inc.'s ability to plan finances and pay suppliers efficiently. The company often faced unfavorable rates, delayed payments, strained supplier relationships, and a high manual workload.

The Solution

Finofo's introduction to Zity Inc.’s financial operations marked a significant turning point. Our platform offered:

Opening Local EUR Accounts

‍Finofo facilitated the opening of unique local bank accounts in Europe for Zity Inc. This allowed them to convert CAD and USD to EUR and hold these funds in their account. Consequently, Zity Inc. could pay their European suppliers in real-time without any wire fees, enhancing supplier relationships and enabling better negotiation of payment terms.

With Finofo integrated into their accounting workflow, Zity could seamlessly handle their existing volume of 30 transactions per month, valued at close to $2 million EUR. They also bid farewell to wire fees and delayed payments, potentially saving close to $9,000 annually on wire fees.

Opening a USD account domiciled in the US

Streamlining Finances with the Parent Company: Finofo helped Zity Inc. open a USD account domiciled in the US in a single click. This allowed for real-time fund transfers between Zity Inc. and its parent company via local ACH, eliminating wire fees and waiting periods. Intra-company transfers occurred 10-15 times per month, saving Zity Inc. approximately $2,500 annually and facilitating real-time transfers.

Happy Customers for Zity: With the USD account, they could receive customer funds like a local business through ACH transfers, making the customers happy as they no longer had to pay wire fees. Approximately, Zity received 30 customer funds monthly potentially increasing their profits by another $9000 which was previously eaten up as wire fees. 

Efficient Currency Conversion: Our platform provided seamless CAD to USD/EUR conversions with fixed FX spreads. Finofo's smart, algorithm-driven flat pricing preserved Zity Inc.’s profit margins and enhanced financial efficiency. 

We are aiming to save nearly $20k in the first year with Finofo, or potentially more.‍

Brian Johnson, Director of Financial Planning & Analysis at Zity, Inc.

The Impact

With Finofo streamlining their financial operations, Zity Inc. has become adept at managing cross-border transfers. They can now efficiently convert CAD to EUR and maintain funds in dedicated European accounts. This capability allows them to strengthen relationships with global suppliers, enhance profits, and facilitate seamless money transfers with their parent company.

Getting onboard with Finofo was an exceptional experience. From opening an account and completing the KYB process to adding our global suppliers and making our first payment, the entire process was incredibly smooth. The Finofo team was always there, making everything simple and easy!

James shares his onboarding experience

By eliminating hefty wire fees, and unfavorable exchange rates, Zity Inc. has significantly streamlined its Accounts Payable and Receivable processes. The intuitive system and real-time capabilities of Finofo have allowed Zity Inc. to save both time and money, ensuring they can focus on their core business activities while maintaining strong financial health.