Kwanji CEO & founder, Leslie Onyesoh, explains how the growth of fintech in the emerging markets can help spur global growth.

Fintech disruption and the process of ‘unbundling the banks’ are the new financial sector mantras. That said, outside the ‘mobile payments boom’ there has been little impactful disruption for businesses across the emerging markets.

With more complex and regulated financial structures, incumbent banks in the rapidly expanding markets of Latin America, Asia and Africa remain unchallenged in charging extortionate fees for forex and other services. Yet emerging market economies account for over 50% of global GDP.

Furthermore, emerging market economies have outperformed their traditional market counterparts over the last ten years and will continue to do so. For example, East Africa alone is expected to see trade with China grow by 91% in the next five years. A burgeoning worldwide emerging market middle class has resulted in greater demand, but still the global playing field remains stacked against businesses operating in these regions.

At this point, you’re likely wondering why you in the UK should care about this lack of innovation in the field of emerging market trade & payments?

Well, it’s simple.

The government is pushing forward with measures to get 100,000 new businesses exporting by 2020, with the hope of adding £5.6 billion to the economy. Such demand is unlikely to be met by increasingly saturated developed world markets. Rather, it can only be met by British businesses taking advantage of the opportunities available across the emerging markets, where businesses and consumers are experiencing greater demand for premium goods & services from the UK.

Already there’s been movement. Trade between UK businesses and emerging markets entities has grown. However, it’s also resulted in UK businesses becoming exposed to greater currency risk and volatility. In 2014 alone, it was estimated that organisations in the UK lost out on up to £2.3bn on non-eu international goods payments.

In effect, the lack of disruption of the old emerging market trade and payments model has led to UK based companies becoming less competitive on the world stage.

The solution does not lie in fixing the payments infrastructure of the UK or the ‘developed’ world. Instead it’s in tackling the greater inequalities of international trade, so as to empower emerging market trade.

Currently emerging market businesses are charged upwards of 4-9% by their incumbent banks, reflecting 4-9% less stock can then be bought by from a UK supplier. A reduction in payment costs would in turn eradicate the inflationary debt of bank fees. Meaning that more stock can be bought for less, something that would be hugely beneficial for emerging market and UK businesses trading together.  

Kwanji provides this very It’s this very trading solution that Kwanji and in doing so provide businesses, no matter their size or location, access to the very same tools to improve their bottom line, streamline their processes and remove administrative errors as their development market counterparts. Creating a more equitable ubiquitous global trading environment.

Kwanji helps companies trade globally with leading currency transfer and payments that bridge emerging and traditional markets.

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