4xLabs Launches the World’s First Wholesale Marketplace for Banknotes
1 May 2018
4xLabs, a Singapore-based fintech, announced the launch of the world’s first online platform for wholesale banknotes trading today. Developed in consultation with the financial services industry, Biz4x Marketplace replaces the traditional telephone system with an electronic multi-party request-for-quote (RFQ) trading platform, that streamlines the current process by eliminating market inefficiencies and providing greater transparency.
Wholesale banknotes trading involves the buying and selling of physical currencies and is the process through which money services businesses obtain their stock of currencies for retail. Money services businesses generally trade with wholesalers, which can be financial institutions like the banks or larger money services businesses, as well as through their personal network of peers. However, the current reliance on trading with a limited personal network and communicating through a telephone system is inefficient as it is manual and only provides a partial view of the market.
The Biz4x Marketplace provides money services businesses with greater market visibility and access to more opportunities. It allows businesses to detail preferences such as currency type, amount, denomination, quality, payment and collection or delivery methods. Once this RFQ is sent out to all businesses on the platform with matching criteria, these counterparties can then submit a quote, and the sender of the RFQ can respond to the quote with the best price that is offered within a set time frame. Individual money services businesses will be able to reach a larger number of market participants hence lowering their average cost of stock. Wholesalers can service their customers at lower cost hence improving their bottom line. All trading activity is logged within the system in the event of an audit.
“The current trading method being used in the money services business industry is over three decades behind the state of the art technology in electronic trading markets. The Biz4x Marketplace was created to close this technological and market gap. At 4xLabs, we aim to be the innovation partner of money services businesses globally, and are focused on helping them to improve today's efficiency, and ensure tomorrow's viability, so they can continue to thrive in an increasingly cashless world,” said Chris Vanden Berghe, CEO of 4xLabs.
Biz4x Marketplace is a product extension of Biz4x, an integrated system for money services businesses that provides live FX rates, compliance, business management and customer acquisition capabilities. Biz4x includes a KYC (Know Your Customer) repository for documents, which helps to ensure swift onboarding, and allows money services businesses to trade with assurance that all counterparties are licensed institutions. Biz4x was developed to help traditional money services businesses leverage the latest technological innovations, to compete on equal ground with industry disruptors and manage their businesses, regulatory and market challenges, more efficiently.
4xLabs is a fintech start-up based in Singapore, with regional offices around the world. The company develops technology and services to bring together communities of money service businesses and travellers. In 2012, the company launched the first online app for comparing money changing rates known as Get4x, which now has a growing community of 100,000 users, and is available in 22 cities. In 2016, it launched an online integrated platform for money services business to manage all aspects of their business, known as Biz4x, which is being used in more than 20 countries today.
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