Summary Description
- Acting initially as FX broker to SMEs, it creates the platform and data to expand the service range
- Provides good client service at good rates
- Strong technology platform able to deliver more complicated products (forwards, etc.), with relatively low cost technology development capability
- Operates from a hub in London but passported across EC
Opportunity/Investment Thesis
- Considerable gap in provision in UK market (banks have retreated, as typical branch based service business has been reduced in service quality)
- Opportunity for broker to act as a ‘distributor’ and aggregate for clearer/money centre banks that can operate within narrower spreads
- SMEs represent robust and growing segment, which, with Ebury tech platform capability, can now receive a broader range of services typically provided to larger corporates
- Combination of globalisation, internet and price/cost comparisons suggest this trend is long term and will continue