ALT21, a leading foreign exchange and hedging technology company, made a groundbreaking announcement at the Money20/20 Europe conference in London today. The company revealed their new offering for businesses, which aims to save them billions on their foreign currency operations.
For years, ALT21 has been heavily investing in the development of an all-in-one technology platform that automates every step of the end-to-end currency exchange and FX hedging processes. This has allowed ALT21 to provide a highly efficient and scalable service, with low human-touch and straight-through processing. As a result, ALT21 is able to offer FX conversions at just 4 basis points, significantly lower than the approximately 200 basis points typically charged by traditional banks.
According to ALT21, businesses could potentially save billions annually by efficiently managing their foreign exchange transactions. With a charge of just 4 basis points on FX conversions, ALT21 aims to deliver significant savings to businesses compared to traditional banks. For example, exchanging £100,000 into euros on ALT21 would only cost a user £40, a 98% saving compared to the approximately £2,000 it would cost using a traditional bank.
In comparison to other alternative providers like Wise, which operates the same currency pair at a cost of 35 basis points, ALT21 provides significant savings to businesses. In fact, ALT21 is nearly nine times cheaper, setting a new standard in financial efficiency.
ALT21 is able to offer competitive FX conversion rates sustainably thanks to a fair yet competitive margin structure that supports long-term affordability. The platform also addresses the need for consistent ultra-low pricing on hedging products, providing full transparency with real-time display of ALT21 mark-ups on all transaction costs, both pre- and post-trade. For example, ALT21 offers fixed and flexible FX Forwards starting at just 4 basis points per month, whereas Revolut Business charges a fixed flat fee of 80 basis points, regardless of the tenor duration. This approach ensures businesses can trust ALT21 with predictable and fair pricing for all their foreign exchange needs.
Pritesh Ruparel, CEO of ALT21, stated, “Businesses often face high costs and significant risks with traditional foreign exchange providers, which is especially pressing for small and medium-sized businesses, the backbone of our economies. As a dual-regulated provider, ALT21 aims to offer the most competitive FX solutions for businesses, providing a real alternative to incumbent providers through transparent and cost-effective services.”
Ruparel added, “By showing our mark-ups on all products before each transaction in real-time, we set a new standard for transparency. Our advanced technology reflects our deep market knowledge, enabling us to deliver scalable and high-quality services. We look forward to entering new markets and revolutionizing the financial industry, helping clients make immediate and substantial savings.”
ALT21 is focused on developing and servicing sophisticated multi-currency and FX hedging solutions tailored for businesses of all sizes. Their platform supports 34 currencies, allowing fully automated trading with no subscription fees or hidden costs.
To demonstrate the significant savings ALT21 can offer, the company provided a comparison table:
FX Spot charge (bps) | Costs to exchange £100,000 into euros (in £) | Savings with ALT21
ALT21 | 4 | 40
Wise | 35 | 350 | 89%
Revolut | 99 | 990 | 96%
High-street bank | >200 | >2,000 | 98%
This analysis is based on data from wise.com, revolut.com, and wise.com/gb/compare/ on May 30, 2024. Exchange rates and fees may fluctuate, so it is important for businesses to verify the current rates and amounts before making any transactions or decisions.
ALT21 also wants to clarify that their fee may vary depending on various factors and is therefore not fully guaranteed. As per wise.com, exchanging £100,000 into euros on May 30, 2024, would cost 35 basis points.
As of May 31, 2024, Revolut Business charges a fixed flat fee of 80 basis points for the same transaction.
Distributed by https://pressat.co.uk/
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.