The global forex market is dynamic, trading over USD 7.5 trillion daily, according to the Bank for International Settlements. While this liquidity is essential for international commerce, it also introduces significant volatility. For businesses, FX risk takes on various forms:
In practical terms, businesses face added costs that compound over time. For instance, cross-border payment fees average USD 27 per transaction, excluding FX spreads, according to a 2021 report by J.P. Morgan. This adds considerable overhead for businesses processing hundreds or thousands of payments monthly.
Cross-border payment flows now exceed USD 150 trillion annually according to a McKinsey 2023 report, driven by the acceleration of globalisation and ecommerce. Moreover, the Bank of England forecasts cross-border payments will exceed USD 250 trillion by 2027. Despite this growth, inefficiencies persist:
These challenges underscore the need for seamless, automated solutions that empower businesses to navigate this complex environment while minimising costs and risks.
Embedded finance represents a significant shift in the way businesses approach financial management. By integrating financial tools directly into operational systems, companies can:
A growing market valued at USD 83.32 billion in 2023, Embedded Finance is projected to grow at a compound annual growth rate (CAGR) of 32.8% through 2030. This rise reflects its broad applications, from payment processing to risk management, and its ability to meet the demands of an increasingly globalised economy.
Okoora’s upcoming FX360 is a case study detailing how Embedded Finance addresses real-world challenges. Developed to seamlessly integrate into payment workflows, FX360 empowers businesses with tools to monitor, manage, and mitigate FX risk with unprecedented efficiency.
What sets FX360 apart:
These features translate into tangible benefits for businesses, including improved cash flow predictability, lower operational costs, and greater resilience against market volatility.
Several macroeconomic and technological trends are driving the evolution of FX risk management:
These statistics illustrate both the challenges and opportunities in the FX space, positioning solutions like FX360 as timely and necessary.
As global businesses continue to scale, the integration of financial tools into everyday workflows will become non-negotiable. Embedded Finance, with its ability to simplify complex processes and enhance decision-making, represents the next frontier in financial innovation.
FX360, as part of this shift, will exemplify how businesses can navigate currency complexity while focusing on what they do best. By embracing this approach, companies can ensure financial stability, reduce operational risks, and unlock new opportunities in the global marketplace.
About Benjamin Avraham
Benjamin Avraham is a fintech innovator, founder and CEO of okoora, a company dedicated to empowering businesses to simplify and optimise cross-border finance. Prior to okoora, Benjamin spent nearly two decades establishing and managing Ofakim Group, a financial services and risk advisory firm. Under his leadership, okoora has been recognised by CNBC and The Europas as a trailblazer in the global fintech space. With a focus on blending financial acumen with innovative technology, Benjamin specialises in driving smarter global operations.
About Okoora
Okoora is a fintech provider offering businesses worldwide the financial infrastructure needed to scale their international operations. Recognised by CNBC and Statista as one of the world’s top 250 fintechs, the company’s automated platform, API, and Embedded Finance solutions empower businesses to collect and send payments, manage multi-currency accounts, and hedge FX risks. Okoora enables seamless operations in over 100 currencies and 180 countries.
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