This cross-border remittance firm banks on technology to give SMEs a boost

Small- and medium-sized enterprises (SMEs) sometimes face a myriad problems when making overseas transactions - the possibility of inefficient and expensive transfers, the inability to track payments, a lack of support from the cross-border service provider and reams of paperwork.

"Traditional banking infrastructure and legacy systems mean that cross-border payments via traditional means are often less efficient, especially for SMEs," says Mr Benjamin Wong.

Keen to help this "under-served" segment, in 2015, the 59-year-old co-founded TranSwap, a cross-border payment platform that makes overseas transactions easy and cost-effective.

Mr Wong, who is the firm's chief executive, recalls how during the 1997 Asian financial crisis, he wanted to make a cross-border payment in US dollars to an overseas supplier. However, the exchange rate was too expensive. "Fortunately, I had a friend overseas who had US dollars and needed Singapore dollars at that time. We agreed to swap our respective currencies at an agreed mid-market rate."

In recent years, as fintech gained traction, Mr Wong saw a need to solve the foreign-exchange issues that entrepreneurs like himself face.

Using tech for good

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With TranSwap, businesses can make payments to more than 180 countries, hold up to 34 currencies, collect and transfer money overseas as though they are locally based firms, as well as conveniently change currencies.

Mr Wong set up the platform with Mr Lim Kien Leong, who has regulatory and legal knowledge. Mr Lim, who is the firm's chief legal officer, is responsible for making the firm compliant with regulators such as the Monetary Authority of Singapore, Hong Kong Customs and Excise Department, and Bank Indonesia.

TranSwap began its operations in Hong Kong and Singapore, then expanded to Indonesia. "Our goal is to empower individuals and businesses around the world by simplifying global finance," says Mr Wong.

Apart from expanding regionally, TranSwap also hopes to widen its reach among under-served communities.

Early last year, it launched an e-remittance service for employers of foreign domestic workers to conveniently wire money to their helpers' families, removing the hassle of helpers having to go to a physical remittance service, particularly amid the ongoing Covid-19 pandemic, on their days off.

And to show appreciation to migrant workers, TranSwap delivered 100 care packages to the Migrant Workers' Centre last August. The care packages were then distributed among workers in a dormitory.

"TranSwap's belief has always been to help communities thrive by serving and supporting individuals and businesses," says Mr Wong. "This not only underlines our longstanding commitment, but is also a cornerstone of our culture where TranSwap has fostered an environment of helping others by engaging our staff with outreach programmes or providing them with opportunities to give back in many ways."

The brand was an Honouree in the Brands For Good 2020 awards, under the Technology For Good category.

The future of TranSwap

Looking ahead, Mr Wong says TranSwap hopes to create a network for SMEs to tap one another's services. This will help accelerate their growth and spur the development of new and innovative solutions.

The firm is working on its payment innovation in the United Kingdom, a key market for TranSwap, to serve SMEs there. It is also establishing its Global Innovation Lab at the Bayes Centre, The University of Edinburgh's innovation hub for data science & AI, with support from Scottish Development International. This will give TranSwap access to the cutting-edge research, skills and expertise in AI and data analytics necessary to deliver more global finance solutions to help SMEs all over the world.

Beyond using tech for good, Mr Wong adds: "We also have plans to continue empowering more people in our community through various events and sponsorships."

https://www.brandsforgood.asia/transwap