There are now many tech products that rely on foreign exchange data for accurate pricing and financial tools and for exchange rate conversions between currencies from around the globe that are updated in real time. The need among tech startups to optimize their FX management is clear, and to do so necessitates the access to, and correct use of, powerful, reliable data. Join us in this brief article as we focus on how FX data management can help your tech startup grow.
In the age of mass cross-border commerce, product pricing and currency conversion must be accurate.
Tech companies in sectors across the economy rely on precise foreign exchange data. In the age of mass cross-border commerce, product pricing and currency conversion must be accurate.
From household name tech companies like AirBnB to lesser known startups in ecommerce, retail, electronics, finance, and other sectors, a currency conversion tool built with leading market data has become essential to ensuring accurate rates for customers. But that's not all. Having such an optimized tool allows your company to avoid the high fees and unfair exchange rates that some of the more prominent digital payment systems demand.
This reduces costs for your company and helps you develop a good brand reputation with your customers for offering fair, precise, up-to-date exchange rates. In a business landscape where this is the exception to the norm, it offers you a quick win as a unique selling point in comparison to your competitors.
As a tech startup, you will be all too aware that your reputation is only as good as your technology. This extends to all areas of your business. If your currency conversion tool at checkout or the FX data you need to power your products is anything less than the industry benchmark, it can diminish your appeal to customers. And if you can't count on it to offer reliable FX data for all the currencies that your customers use, it will hinder your growth.
The common alternative is to rely on daily FX rates rather than live rates. Daily rates are updated once a day, but the FX market moves every second, meaning that they are out of date the second after they are set.
While many tech startups are choosing to integrate a market-leading FX data tool, the world's largest tech companies are getting in on the act too. For instance, Samsung partnered with OANDA in 2017 to offer rich, reliable currency conversion data to its customers.
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Tech startups must of course cultivate an image of efficiency, utility, and speed. Instantaneous FX data supports this end, boosting product performance and pricing process through timely delivery in real-time. And the more countries in which your tech startup offers its product(s), the more important speed of FX data delivery is.
More countries mean more currencies are involved (apart from the 27-member single currency Eurozone). And with more currencies, the greater the need to ensure speed of reliable FX data delivery.
The services that legacy FX data providers offer are simply out of sync with the advances in technology in recent years.
The services that legacy FX data providers offer are simply out of sync with the advances in technology in recent years. On all three counts—precision, reliability and speed—it is the benchmark, technology-led FX data providers that lead the market. For tech startups in particular, throwing the gauntlet down to their own specific sector's legacy competitors, legacy financial institutions are no longer fit for purpose for a range of business financial services and tools. As much for frontend as backend purposes, an efficient FX data tool that is already trusted both by tech startups and established tech companies leads to value-added business results all-round.