Internet Currency Exchange Services as an Alternative to Traditional Financial Institutions

This article tackles with the new market situation of increased demand for the currency which is reflected in supply in the form of many online currency exchange platforms. Over the past few years there is a new stimulus to the market to look for alternative ways of getting foreign currencies. The background of this situation is the economic and social downside of foreign currency borrowers concerning the volatility of exchange rates and also the institutional changes in Poland. Premised on theoretical currency specifics and credit markets, the observational aspects of those fields within the economic and social drawback background are mentioned. The lower economic profitability of classic ways of exchange in banks and exchange offices in conjunction with legislative rearrangements have resulted in the creation of a distinct segment for on-line currency exchange services. The low creation barriers of internet sites, low operating cost as well as practically unlimited pivoting their business models makes them simply accessible, however entails additional risks. An analysis is being made tackling with specificity and cost-effectiveness for the customers’ utilization of mentioned services compared to these offered by traditional institutions. The analysis might confirm the adopted hypothesis that the services provide more favourable exchange rates compared to those offered by traditional institution. Therefore, they play a crucial economic and social role in the current situation concerning credit and currency markets. The model of the whole research is elaborated and preliminary results will be presented during the conference Makelearn & TIIM International Scientific Conference 2017 in Lublin.