The Australian economy is undergoing a significant transformation (1). In a landscape previously driven by post-GFC woes and a mining boom, we are seeing a new economy take form where, led by a favourable global outlook, Australian businesses are beginning to experience the benefits of international trade, in an environment that offers less risk and more reward (2).
In the Australian market, we’re hearing a lot about the national innovation agenda and how this will support growth in Australian businesses and in turn, the economy. What’s clear from this is that Australian businesses – in sectors ranging from retail to tourism to manufacturing – have an extremely important role in the new economy as economic stimulus. What’s less clear is how they can benefit.
With digital technology enhancements continuing to reshape business methods and platforms, expansion into foreign markets has become more accessible for businesses of all sizes. Coupled with analyst forecasts suggesting a continued rise in international trade for Australia, now is the time for businesses to deepen their sector understanding on a global level and embrace the opportunity for international growth (2).
Retail: From Bricks and Mortar to Global Digitalisation
One of the sectors embracing innovation and industry growth opportunities through international markets is the retail sector. Whether importing or exporting, the rise of online retail powerhouses means that Australian businesses operating in the retail sector need to embrace change and continually innovate to survive and thrive. What we’re seeing from the market is a positive response in this space from larger businesses, who are more open or adept at engaging with their internal and external networks and reviewing trading facilities to ensure they’re offering the best product for customers.
For smaller businesses with limited resources, a large retailer mentality is becoming easier than ever to adopt. The rise of fintech in recent years has seen a range of business methods digitised, and navigating different currencies is no exception.
Managing foreign exchange risk is not only an option for larger businesses. Businesses of all sizes who regularly make or receive offshore payments can use our Foreign Currency Account to help mitigate this risk, avoid conversion fees and manage their accounts from the one platform in real-time.
With technology like this becoming available to business, international trade is becoming easier than ever before. Business owners no longer need to have a split focus across their business, foreign currency rates and ensuring safety in international transactions. Instead, business owners can increasingly focus on what they really want to – growing their business.
For more information on CommBank's Foreign Currency Accounts, or to apply, please click here.