Can a smaller FX and global payments provider compete with large and regional banks in facilitating foreign currency payments to overseas suppliers? “Absolutely,” asserts Monex USA CEO John Doyle.
The current FX marketplace raises questions about whether the impacts of a Trump election win on the US dollar’s strength have already been priced in. While it’s difficult to provide a definitive answer, Monex USA’s online currency outlook suggests the dollar has indeed been strong in recent days compared to most other currencies.
In a recent conversation with Doyle at the AFP conference in Nashville, Tennessee, he discussed upcoming trends in the FX market and the competitive landscape for Monex USA, part of a larger conglomerate that includes a leading bank, FX provider, and funding and leasing services.
Since its acquisition by its Mexican parent company in 2011, Monex USA has offered a comprehensive array of spot and forward currency transaction services, options, and advisory support to a diverse client base that ranges from small businesses to large corporations and financial institutions. Their offerings also encompass global payments and multicurrency accounts.
Regarding the impact of the US election on currency rates and futures, Monex’s website notes the strength of the US dollar following the market close on October 21: “Election premiums are now a significant factor in USD pricing and are expected to continue for the next two weeks leading up to the election, despite early voting already taking place.” With polls showing the major candidates in a tight race, market forecasts suggest a potential edge for former President Trump, which could lead to a stronger dollar due to anticipated tariffs and spending that might trigger high inflation and limit the Federal Reserve’s ability to ease monetary policy.
What if Vice President Harris wins? A Harris administration, in contrast, might lead to a steadier trajectory for the dollar rather than a potential surge as projected under Trump’s policies.
Monex faces competition not only from major banks but also from numerous FX providers in the US market. Doyle explains that many of their new business opportunities arise from referrals or from corporate finance officers who have previously worked with Monex and reach out for rates and payment assistance when joining new firms.
He emphasizes the importance of relationships in securing clients. “It’s hard to establish these days, right? People don’t pick up their phones. But if something goes wrong, our service brings clients back,” he states.
When it comes to trends impacting foreign exchange markets compared to the last several years, Doyle notes, “Everyone is participating in the FX game now,” as increased global commerce and internet connectivity create new trading opportunities. Technological advancements have enabled Monex to stay competitive against established financial institutions. “The global payments landscape is evolving faster than people can keep pace with. Speed of payment, delivery, and accuracy have all seen significant improvements,” Doyle explains.
Monex’s team in sales, operations, and trading now works under heightened client expectations. “Three to six days for a payment to be transferred internationally is no longer acceptable.” What used to be expensive and slow for individual and lower-value transactions has changed significantly, with Doyle highlighting that consumer expectations are now aligning more closely with corporate standards, particularly as ecommerce providers can process cross-border payments in as little as four hours.
For smaller FX companies like Monex to thrive and grow in the global payments arena, Doyle believes that while technology plays a role, the foundation remains rooted in relationships. “Technology has certainly accelerated payment speeds, and API integrations are crucial, but we still need to ensure excellent service on a human level. Our clients must be able to trust us and talk to someone if they have questions.”
Many clients seek guidance on cross-border payments, weighing the benefits of issuing payments in local versus base currencies based on exchange rates and specific circumstances. Monex’s personal service and expertise in 130 currencies often provide significant advantages. Some clients appreciate the self-service approach but can rely on Monex’s team for assistance whenever needed.
With the financial landscape evolving, Doyle acknowledges the importance of developing new partnerships and expanding operational links to cater to an increasingly savvy client base. “We used to rely on a limited number of liquidity and payment providers; now we must offer more diversified options for our clients,” he says.
Looking ahead, the focus for Monex and its clients will be on flexibility, maintaining valued relationships, and combining consistent service with simplicity and experience. As Doyle concludes, clients appreciate ease of interaction, whether seeking information on hedging strategies or processing payments, and Monex is committed to delivering that across 140 different currencies daily.