Financial Liberation: How Fintech is Slashing International Transfer Costs for South Africans

For decades, South Africans sending money across borders have faced a bitter pill to swallow: exorbitant bank fees that quietly eat away at their hard-earned money. But what if the financial establishment’s grip on international transfers is finally loosening?

The Hidden Cost of Moving Money Abroad

Traditional banks typically charge between 2-3%—sometimes even more—for individuals and small to medium enterprises moving money into or out of South Africa. This practice has become so deeply embedded in the nation’s financial ecosystem that few customers ever think to question it. Yet the cumulative cost is nothing short of staggering.

Consider this: South African Reserve Bank data reveals that close to R2.8 trillion enters and exits the country each year. Even at a conservative estimate of 1% in transaction fees—well below what most customers actually pay—this translates to approximately R28 billion annually flowing from South African pockets into bank coffers.

“It’s not just the high costs of moving money internationally that frustrates customers,” observes Harry Scherzer, CEO of Future Forex and a qualified actuary. “To make matters worse, the banks’ service often falls woefully short. You end up being pushed from pillar to post, dealing with call centre staff who simply don’t understand you or your specific business needs.”

The Transparency Revolution in Foreign Exchange

After years of dominating the forex market, traditional banks now face formidable competition from agile fintech companies, with Future Forex emerging as a leading challenger. This multi-award-winning financial technology firm claims to cut international money transfer costs by up to 50% for individuals and 30% for companies—while simultaneously redefining what customers should expect from their service provider.

“That represents a huge incentive for anyone sending or receiving international payments,” Scherzer emphasizes. “Our advanced financial technology and economies of scale enable us to offer significant cost savings to our clients, securing exchange rates far more competitive than those typically offered by traditional banking institutions.”

Decoding the Hidden Fees

Banks have become notorious for their opacity regarding international transfer fees, making it remarkably difficult for customers to understand what they’re truly paying. While some costs are clearly disclosed—such as SWIFT fees (typically ranging from R500 to R1,000 per transaction), administrative fees, and commissions—the real financial blow often comes buried in what’s known as the ‘spread.’

This spread represents the difference between the price at which the bank buys and sells a currency. While this varies between institutions, recent figures showed most banks buying US dollars at around R17.02 while selling at R17.40. That 38-cent difference on each dollar equates to a hidden cost of approximately 2.2%.

Put into practical terms, if you were sending R1 million to the United States, you’d be paying roughly R22,000 in hidden costs alone—before even accounting for SWIFT and other administrative fees.

“This lack of transparency is exactly why we’ve built our business on complete openness,” Scherzer explains. “We guide every client through how their forex fees are structured, ensuring they understand from the outset what they’re paying for and why. More often than not, clients express shock when they realize just how much they’ve been overcharged by traditional providers.”

Beyond Cost: Revolutionizing the Customer Experience

International payments represent a familiar headache for many South Africans. Transactions that should be seamless frequently face unexpected delays, get lost in bureaucratic limbo, or become entangled in complex bank and regulatory processes. One common hurdle involves selecting the correct Balance of Payments (BoP) code from a daunting list—choose incorrectly, and your payment could be stalled for days.

“Navigating international payments can be incredibly frustrating,” Scherzer acknowledges. “When issues arise, you’re often left grappling with impersonal call centres or unhelpful chatbots, where no one truly understands your specific circumstances or needs.”

Future Forex takes a fundamentally different approach, assigning every client a dedicated account manager—an expert in foreign exchange who tailors solutions to that client’s unique requirements, whether they’re emigrating, investing offshore, or managing an import/export business.

“Our experts remain available throughout the entire process,” Scherzer notes. “From ensuring regulatory compliance and assisting with tax requirements to guiding clients through BoP code submissions and tracking transactions, they’re just a phone call away for any questions or concerns that might arise.”

The company also handles all necessary approvals from the South African Revenue Service (SARS) and the South African Reserve Bank (SARB) at no additional cost, allowing clients to transact seamlessly without worrying about bureaucratic red tape.

Award-Winning Innovation in Financial Services

Complementing its renowned white-glove service, Future Forex provides clients with a highly intuitive web and mobile platform where they can book and track transactions with ease, upload required documents, and receive real-time updates—all through a single, unified interface.

This innovative combination, a first in South Africa’s forex industry, has earned the company multiple prestigious awards. Among these recognitions are ‘Company of the Year’ at the 2025 Africa Career Summit and ‘Outstanding Customer Service in Forex & Payments, South Africa’ at the World Business Outlook Awards, building on a strong track record of industry acknowledgment throughout 2024.

The emergence of such fintech solutions raises an important question: Why have South Africans tolerated excessive international transfer fees for so long? The answer likely lies in a combination of institutional inertia, regulatory complexity, and simple lack of awareness about alternatives.

As technology continues to democratize financial services, the traditional banking model for international transfers faces an inevitable reckoning. The combination of transparent pricing, personalized service, and technological efficiency represents not just an alternative, but a fundamental improvement in how South Africans can manage their cross-border financial activities.

For individuals and businesses regularly moving money internationally, the message is clear: the era of accepting excessive fees and poor service may finally be coming to an end. The question now becomes not whether to seek alternatives, but which provider best aligns with your specific financial needs and expectations.

Source: Moneyweb