Describe the company – the elevator pitch …
TransferGo is the high-growth international money transfer company that uses a digital account-to-account business model. Funds are paid in locally and then paid out locally. This innovative system means that the company does not have to send money across borders. The sender makes a local payment to TransferGo, which then makes a local payment to the recipient, from any account to any account. Since individual transactions don’t cross borders, we’re able to do this 95% cheaper and 100% quicker than traditional players. The business currently has over 45 banking partnerships and 200k+ customers, who send over £18 million monthly and growing fast.
How are you different?
Firstly, our settlement models are very different. While other companies apply to the p2p model or work with third parties, which prolongs the process and allows the room for error as money is handled by someone else, we, on the other hand, apply the local-in-local-out model, which allows us to payout the money from the pre-funded accounts to recipient as soon as we receive the funds on the sender side. That means money never leaves bank accounts and is not only safe, but also way easier to track, as we can always see where it is.
Secondly, we manage currency fluctuations via an ingenious backend system, meaning that their clients aren’t exposed to currency fluctuation risk, unlike other companies, who usually ask the client to deposit an extra 3% FX deposit to cover any possible currency fluctuations. As currencies fluctuate daily this FX deposit can be quite a large amount if the clients are unlucky. TransferGo are the only international international money provider with no FX risk. The company absorbs the FX risk by providing their clients with fixed fees and guaranteed destination amounts, which is enabled by leading hedging technology. That means TransferGo clients know exactly how much they’re sending and exactly how much their recipient will get.
Finally, we have fully localised product experience incl. web & mobile products and customer care making it accessible to more clientele out there who prefer to be services in their local language.
— TransferGo (@TransferGo) November 29, 2016
Why will the company / product do well?
TransferGo business was born out of frustration while dealing with bank and trying to make international money transfers via them. In 2011 my co-founder and I established a more traditional import/export business, which meant we had to make regular international payments to our suppliers. Back then, banks were our only option and, oh boy, it was a nightmare. Needless to say, we were charged up to 15 times more than now for seven-day settlements, but there was a general sense that customer satisfaction wasn’t really something major UK banks paid a great deal of interest to. We’ve faced face unfair and stagnated money transfer sector ourselves – the unreliable destination amount, huge charges and transaction time stretching up to 7 working days.
Once they saw the problem, they realised that solution such as TransferGo could help many people, like them. Because we understand the problem and feel the pains that our clients have, we can tailor our product and approach to have a 100% focus on what matters the most and serve our clients to the absolute best of our abilities and beyond. We see how lifting the burden of pricey, slow and complicated international money transfers, can change people’s lives, as sometimes an average transaction can be up to 20% of month income on the recipient end. That money can change their lives dramatically from making the ends meet, to actually entering the middle class and that is where we see the real meaning of our business.
Where are you based?
TransferGo is based in Canary Wharf Group’s Level39, Europe’s largest technology accelerator space for fintech companies. Company also has an office in Vilnius, Lithuania.
What have been your biggest wins to date?
TransferGo currently has over 45 banking partnerships and 200k+ customers, who send over £18 million monthly and growing fast. We can see the constant increase in those numbers, which gives an important edge to the company. We are very proud that we are able to build long-lasting relationships based on trust and with our partners, but most importantly – clients. TransferGo earned migrant trust by transforming our customers’ lives for good. By providing frictionless and accessible money movement with a community focused approach, localised customer support and attention to the need of the community, TransferGo has had a truly transformative impact on both senders and receivers’ lives.
What type of people (market segment) are you trying to attract to your product?
TransferGo focuses on serving migrant communities from central and eastern Europe. Company was founded by 4 migrant entrepreneurs from Lithuania, who had a goal to transform lives of tens of thousands migrants living outside their home countries. Just recently we were named one of the changemakers in central and eastern Europe by Financial Times. TransferGo was listed as organisation that is changing the region’s societies, politics or business environments and displaying innovation, entrepreneurialism and fresh approaches to prevailing problems of ineffective, expensive and slow money transfers.
Though migrant might be our focus, anyone can use TransferGo , as our customers can send money to and from over 45 countries in Europe and beyond at the most competitive prices with close to real-time delivery. We also have a business side of the product, so SMEs can use TransferGo to pay their employees or suppliers abroad.
Tell us about your team?
In only four years TranferGo family has grown to 50 employees with 7 nationalities represented. What started as 4 friends ‘saving the world’, now is an established company, however, not losing its flexibility, consumer focused approach and inspiring atmosphere.
We have extensive team of developers working on our product in-house, led by web and technology enthusiast and an expert in high-scale system development Sarunas Savicianskas. Also constantly growing customer support team, helping our clients in 6 languages: Lithuanian, Polish, English, Romanian, Latvian and Russian.
What are you long term plans for your product / company?
2017 is all about the real-time and mobile. We’re now growing quite fast across major markets within Europe and beyond, but we need to improve our mobile presents as we see the growing need for an easy solution in one’s pocket. We’ve already resealed our iOS app and currently working on Android version of it. Moreover, we’ve just recently released close to real-time money transfers for some countries in Europe, as we’re seeing the incremental increase in need of speedy transfers. Clear evidence that today people value speed and immediacy when making a purchase, can also be seen in the latest reports, where the increasing usage of contactless payments and mobile banking in the UK has reached 69%, meaning that almost three quarters of mobile users currently do some form of banking on the their phones. Therefore, byt the end of 2017 we are aiming to offer a mobile real-time money transfers for all major currencies in the world and help majority migrants across the globe.
What advice would you give to budding entrepreneurs? What is the one thing you think an entrepreneur should focus on that they may not find important?
Most importantly, while creating a business you should make it clear to yourself what kind of problem your business is solving for the consumers. Then you should offer the most frictionless solution to solve that problem. It’s very important to have a good team around you and do not micro manage them, but inspire them to exercise their abilities and experience to the fullest, while seeing every obstacle like an opportunity to improve.
How do people get in touch with you?
Guste Sadaunykaite – Head of Brand and Communications at TransferGo