The fintech company Iban First entered the German market in mid-January. The subsidiary of the Belgian parent company of the same name specializes in supporting SMEs with cross-border payments and, in particular, managing the currency exchanges involved in remittances.
Find more about Iban First and its plans for future development with our companion app. The Born2Invest mobile app is available for free for both Android and iOS devices and keeps its readers up to date with the latest business headlines in the world.
Iban First targets SMEs
The Managing Director of the local branch is Mark Elser, who most recently headed the corporate customers’ branch in Nuremberg for LBBW until August 2020. “We want to make payment transactions more transparent,” he said. “The data is there, we’re just making it visual.”
Iban First has opened its first office in Munich. Elser plans to add a second location in a major German city this year, with a total of about 25 employees by the end of 2021. Iban First specifically sees a gap in the market for smaller SMEs, as FX business is often not profitable for banks in this segment. “Our sweet spot is companies with revenues of up to $60 million (€50 million),” Elser said. However, outside of Germany, he added, they also have much larger customers.
Smaller companies, mostly family-owned, often have no hedging strategy at all, Elser explained. For example, many smaller companies transfer money to China, “but then they don’t see what the exchange rate was until the statement,” Elser says. “With us, the customer sees in real time what the FX cost is, and therefore how much the transaction cost.”
Data from GPI Swift and Sepa
Iban First also offers its so-called payment tracker in Germany. According to Iban First manager Elser, that enables treasurers to see where in the world the transferred money is currently located. “Then you don’t have to call the corporate account manager to find out what the status is.”
Iban First feeds its platform through officially available data, such as from the GPI Swift network or Sepa. It can be used via a browser or even through interfaces (API). Because the currency management fintech is PSD2-accredited, it is also possible to view account information from third-party banks and start payments from a bank account, Elser says. Opening an account is free, he adds. “We make money mainly from the currency business,” the ex-banker explains. “We add a margin to that.” However, he does not want to reveal where that margin is.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in DerTreasurer, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
What Is the Role of Fintech Companies in the Payments Ecosystem
The CEO of BIT2ME referred to the future of fintech as "good". However, he stated, "We live in a society...
UN Report Calls on Member States to Stop Criminalizing Drug Users
The report shows that a growing number of countries in all regions are adopting policies and practices that decriminalize drug...
Markets Heated Up This Past Week as Guidance from the Fed Was Bearish
The Fed left rates unchanged at this past week's meeting as expected but the guidance was hawkish. Markets didn't like...
Current Woes in Bonds Promise Future Grief for Stocks: Focus on Dow Jones
If you’re bullish, maybe you should lower your expectations of what the stock market can do for you in the...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [uMobix Affiliate Program Review]
This week, we're covering everything from hustle culture to spying on kids, making this affiliate digest look like it has...
Crypto7 days ago
Ripple’s IPO Plans – What Do They Mean for XRP?
Biotech2 weeks ago
Murcia Puts Out to Tender for €500,000 the Works of the Clinical Trials Unit in Arrixaca
Africa4 days ago
Immorente Invest Maintains its Financial Stability
Biotech2 weeks ago
Asabys Partners Leads a €14 Million Round in Gradient Denervation