Why was Monetor created?
At Monetor we want to put the power in the hands of our customers. Make the system more transparent. Provide 24/7 advice on the next best move for the customer. So the customer does not end up with expensive, difficult-to-understand financial instruments that put your money in the pockets of banks and traders.
We believe in a fairer and more transparent financial system. Part of our business model is the ‘Robin Hood tax’. The currency market is by far the largest traded market in the world, with US$6.1tln traded each day. A minutely small portion of every trade should be harnessed and invested in efforts to support a more sustainable future, such as UN Sustainable Development Goal #8 on economic growth and fair access to financial solutions: https://www.un.org/sustainabledevelopment/economic-growth/.
How it works
Select one of the 4 ways to connect Monetor to your data. Once we know about your ‘exposure’, we track it against the currency markets and let you know how much currency to buy when. Doing that takes advantage of movements in the markets, and protects you in case these movements work against you. We use timing as our most important instrument.
At the core of Monetor are sophisticated algorithms. We do not predict the direction of the markets – we don’t believe in that, but we apply optimised hedging strategies that are tailored to your unique situation. Monetor can be seen as Robotic Process Automation. We connect your purchase orders and invoices on one end to your payments on the other end. But in between, we make sure you get better exchange rates, more predictable costs, and less volatility in your outcomes.
It is also possible to connect Monetor to your bank. We transfer money from one currency account to another. Automatically if you like. That way you can sit back and relax, knowing that we have you covered.
A Great Overview
Companies that do business internationally usually require a different currency of some sort. The price of a currency is in continual motion, which means companies are exposed to currency risk. This can be manifested in many ways.
Monetor is built to monitor that motion along with your specific exposure. This gives clarity into how the markets are affecting your business.
You make the rules, based on your company’s riskprofile and we’ll Monetor it for you.
If you need help as to what a riskprofile is or how to use it. Read more about it within our application or contact us. Always happy to help.
Extra profit due to favorable FX moves is a great bonus, but recovering from an FX induced loss can be very difficult and dangerous
Create your edge
A rate move from 1.1200 to 1.1312 may seem normal and not a big deal, but it means a cost increase of 1%, which in turn could mean a 15% decrease in profit. Of course, your situation is different. This is why the Monetor technology is tailored to your unique portfolio, financial situation, and risk appetite.
Increase purchasing power
How much you can charge your customer or price your goods is often dictated by market circumstances. How much you earn depends on how well you manage your risk. One way or another you have to factor in a degree of FX risk in your financials. What if you can reduce that?
Many companies use exchange rate estimates as a basis for price- and margin calculations. Many companies go about assessing these rates in the wrong way. Monetor calculates the sharpest rates for you, and offers currency procurement automation that will ensure you stay within these rates. You’ll be surprised how much margin you will gain.
Monetor FX risk mitigation does not involve complex bank products, lock-in, or pre-approved credit lines. And applies also to the smaller amounts the banks don’t want to touch. And the unit cost per $1,000 risk reduced is the lowest available.
Use FX risk to fund additional growth
In the analytics we run for our customers we see that the difference between having FX risk and not having FX risk can mean achieving the same profit with 50% gross margin on products instead of 60%. Or having the cashflow to fund 15% growth instead of 10%. Why let something you can’t control, control you?
Traditionally, currency issues have been the domain of the CFO. Not anymore! Now you can empowe the whole team to take responsibility and help alleviate the burden. Let the management team set the policy and the company enforce it – with full control. Clearly and Consistently
Benchmark performance and follow best practices
Tools that are traditionally designed to mitigate FX risk are for instance forwards, tarfs, options, derivatives. They are difficult to understand, cumbersome to set up, and we know that there is at least one party that is not going to lose money on them: banks and traders. FX transactions have been a cash cow for decades.
Securing FX at the right time has a much more significant impact on rates than for instance reducing spread. Forwards have their benefits. Securing forwards prompted by Monetor: even better.