Brexit Fallout Proves We Cannot Rely On Traditional Financial Providers

On Thursday, the UK voted to leave the European Union, and the effects of this decision are there for all to see: over $3 trillion has been wiped off the global financial markets, Sterling has hit its lowest point since 1985 and Britain has immediately lost its AAA rating from rating agencies Moody’s, and Standard and Poors.

During Monday’s business hours, Barclays and RBS had to suspend trading after heavy losses on the Stock Exchange. Barclays’ share price was seen to have fallen by 10.3% and RBS fell by 15%. With an increasingly volatile global economy, the Brexit vote has again highlighted an institutional weakness in the banking system, and has underscored the need for alternative methods for people to manage their money.

Above: News of a Brexit vote casts a dark cloud over the London Stock Exchange

Above: News of a Brexit vote casts a dark cloud over the London Stock Exchange

Over the past twelve months, there has been an increase in calls for banking alternatives, due to the ever expanding inefficiencies of High Street Banks, which over the past few days, have gone into dramatic decline, raising serious concerns about the stability and long term future of traditional financial institutions post-Brexit.

With our new Cash Manager system, Racing FX is able to provide a true and reliable alternative to traditional banking methods, which won’t suffer from volatility or client money risk like the High Street Banks will continue to do.

Above: The FTSE100 reacts to the news that Britain voted to leave the European Union. An illustration of just how volatile financial markets are at this moment in time.

Above: The FTSE100 reacts to the news that Britain voted to leave the European Union. An illustration of just how volatile financial markets are at this moment in time.

Customers can make and receive domestic and international payments without the stress and aggravation caused by banks. We also give you the flexibility to pay out of your Cash Manager account in over 30 different currencies with no transaction fees. On top of this, you’ll also have access to funds twenty-four hours a day, with the ability to hold foreign currency in a multi-currency account for future use.

Events over the past week show just how significantly a Geo-political event can affect traditional institutions like the banks. As we head towards choppy economic waters, it’s time to move away from unnecessary risk, and if the Brexit fallout is anything to go by, there is no better time to do so, than now.