Welcoming TransferX to FinTech Connect!
TransferX uses a completely new concept for foreign (cross-border) remittances. Our objective; provide a more efficient solution for transferring funds into under-banked emerging markets, by leveraging ‘Distributed Ledger Technology’. DLT allows TransferX to achieve much faster yet cheaper payments, and our digital platform avoids the need to use agents.
Year Founded: 2016
How did the idea for the business originate?
We believe that remittances are overdue for transformation. In 2018, traditional remittance providers have serious shortcomings: first, many are still high-street based, and thus inconvenient and expensive; second, limited service times mean that they are only accessible during store opening hours.
Yet, new providers continue to come to market, basically competing on price, and offering digital “solutions” primarily for the sender, who can use web/mobile options to send money. But recipients are often still left to deal with an agent-based model.
Even more importantly, current remittance solutions use the traditional banking system for moving funds across borders. This approach generates extra costs in the form of bank fees, and is painfully slow, typically taking 2-4 days. Remittance providers who claim to offer ‘instant’ transfers are in fact making use of pre-funded bank accounts; this approach requires a high capital cost to operate and introduces additional FX costs (when currency accounts need to be funded). These fees are borne by the user, driving the costs even higher.
The market is price drive, meaning users flock to who is the cheapest, services are not built for customers but rather to drive sales hence users are just using it because options are scarce. Sales growth isn’t based on true brand value/loyalty but what your price is today
The old system of managing bank accounts and fees, FX costs, is overdue for transformation. Customers want a brand that is built for the community and offers that community services fitting.
Do you have customers yet? If not, how far into your business lifecycle are you?
We are pre-revenue with our MVP launch in 10-12 weeks, depending on fund raise. Currently raising a pre-seed of £150K to cover regulation requirements and mvp operating costs. We have 2000 users subscribed for mvp.
How have you funded your growth to date?
The last 18 months since registering the business (and before) everything has been self-funded by myself. Luckily we have a team that is committed to the company by shares as they believe in what it is we are building. So HR costs are very minimal besides sub contractors or freelancers
What would a successful year look like for you?
MVP Launch (Capped @2K)
Pre-Seed Fund Raise of £150K
These are the key things now. Get the funds and launch the product everything else is in place.