The human touch in forex: Why personalised service trumps algorithms
In the fast-paced world of complex forex transactions where markets never sleep and decisions often need to be made quickly, offering access to personalised service with real human interactions – crucial for understanding client-specific needs – as well as dedicated customer support is not just a nice-to-have but rather an essential service.
This strategic approach is particularly important in high-stakes situations like emigration or large transfers, where the nuances of individual circumstances can significantly impact the transaction process.
Kuda FX aims to understand its clients’ needs per transaction. Every client differs, so the approach to every client and trade is adapted to fit the client’s needs and expectations. Once the client has explained their needs, the specific products and strategies are chosen to match their needs and allocated, helping the client feel seen and valued. It is this commitment to understanding each consumer that sets a forex business, like Kuda FX, apart as a brand.
Says Gerhard Smith, forex dealer at Kuda FX, “Human touch in our line of work is very important and valuable. We have high-net-worth clients, and they feel more comfortable during a transaction if they can speak to real people, which incidentally, is one of the values at Kuda FX. By being directly involved with the transaction as well as the client, a level of trust is established and nurtured.”
Kuda FX’s approach emphasises the importance of understanding client-specific needs through direct communication. Its advisers are available to clarify doubts and provide insights that go beyond transactional information. For example, they help clients understand regulatory requirements and potential risks involved in currency exchange, ensuring clients feel confident and informed throughout the process.
In contrast, while artificial intelligence (AI) can process vast amounts of data and offer recommendations based on algorithms, it lacks the ability to grasp nuanced human emotions and life circumstances. AI systems may efficiently execute transactions, but often miss the subtleties of a client’s situation – such as stress related to emigration or urgency stemming from a family emergency – which could influence their decisions.
“Personal touch has heart, and heart goes a long way – whereas AI has zeros and ones,” adds Smith.
For instance, clients looking to emigrate may not only be concerned about the best exchange rates but also about how to navigate the emotional and logistical challenges associated with such a significant life change. Kuda FX’s advisers excel in this area, offering tailored guidance that considers both financial and personal factors. They are trained to ‘read between the lines’, understanding that a client’s hesitation may stem from fear of losing money or anxiety about relocating their family.
AI systems operating on a basis of data and algorithms sadly fall short, as they are incapable of interpreting the nuanced feelings of clients effectively, particularly in high-stakes situations. During periods of market volatility, clients often experience anxiety and uncertainty. While a human adviser can provide reassurance and empathetic support, addressing these emotional concerns directly, an AI system may simply provide data-driven insights without acknowledging or responding to the client’s emotional state, potentially leading to feelings of frustration or alienation for the client.
Notes Smith, “Emotional intelligence, in my opinion, is crucial when dealing with clients, particularly as all clients are different. Higher emotional intelligence allows an adviser to not only get along with all potential and existing clients but also reach a bit further and build a meaningful relationship with clients.”
AI relies heavily on historical data and predefined models, which can lead to significant challenges when markets behave unpredictably and create a false sense of security for traders. For example, during geopolitical crises or sudden economic shifts, AI systems may fail to adapt quickly enough to changing client needs or market conditions.
Likewise, if a client’s situation diverges from established patterns – such as needing to transfer funds urgently due to a family emergency – AI may not recognise the urgency or provide an optimal solution tailored to the client’s immediate needs.
“With our knowledge base in Kuda FX, we guide our clients on regulation requirements during a currency exchange, flagging potential risks involved in different transactions as well as helping to mitigate those particular risks. For example, our hedging division, with its knowledge and expertise, aims to mitigate currency risk for our clients,” adds Smith.
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