Kantox, a major threat for the banks, says the Spanish Institute of Stock Market Studies

Kantox provides an easy to use platform to exchange currencies to medium and small enterprises that poses a serious threat for the traditional banks due to its simplicity, transparency and its lower prices. These are the main conclusions of the II Ranking of Competitors of the Financial Sector, released by the Spanish “Instituto de Estudios Bursátiles”, one of the most recognised authorities in the field of financial market research and affiliated to the Universidad Complutense de Madrid.One of the consequences of the financial crisis has been the transformation of the finance sector. The sharp reduction of competitors in certain fields has encouraged technology firms to jump into new financial services, that were almost completely dominated by the traditional banking sector.The good reputation of the tech firms, which count on fans instead of clients, in sharp

contrast with the quickly deteriorating image of the banks, immersed in countless financial scandals, has been an invaluable advantage for the newcomers to grow rapidly and eat into the banks’ monopoly.

Kantox pose an 8 out of 10 threat to the banking sector

The report selects the ten biggest competitors of the traditional financial sector, assigning a threat level out of ten to each of them. Kantox has been rated a 8 danger level, under “new models of digital business”.The Institute describes Kantox as a company providing access to foreign currencies for small- and medium-sized enterprises in a simple and easy way, adding the differential value of transparency, with straightforward costs.The Kantox business model represents a serious threat for the traditional banks, says the report, because it is chipping away at banks’ presence in a finance sector of fundamental importance for the banks when most companies increase their efforts to internationalise their business.Foreign exchange activity requires a limited workforce and a good technological infrastructure, an aspect that plays in favour of Kantox, whose agile structure allows the company with a simpler, customer-friendly service and lower prices, compared to the banks.All in all, Kantox equates to a very serious challenge for the traditional banks, according to the report, which concludes by highlighting the huge potential of growth Kantox has among small- and medium-sized enterprises.