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Transferwise launches its borderless account with a debit card and in a recently commissioned research report, identified that Aussies are unaware of the full costs involved in sending money abroad
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OFX also found in a study that customers stuck with transferring money through their bank because they didn’t think that the savings on offer would be significant enough
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Savings can run into thousands of dollars when making large international money transfers, or regular payments, by partnering with a money transfer company
Transferwise has recently announced the launch of its consumer borderless account, coupled with a new debit card. Through the new borderless account initiative, customers will automatically receive local bank accounts in UK, Europe, Australia and US. Previously the borderless account was launched to business customers but did not include a debit card. The new borderless account will benefit customers who have relocated abroad or who are perhaps being paid for work they have carried out internationally. The flexibility that the account offers means that customers have an instant debit account which they can receive funds into and rather than having to transfer out again, they can use the debit card to make payments. This will save on possible exchange or transfer costs that may have otherwise been incurred and simplifies the process. With the right awareness of this product customers stand to benefit from better and more cost effective ways to transact in today’s borderless culture.
Meanwhile, two pieces of research by Galaxy Research have demonstrated that Aussies are not aware of the costs that they could be saving by carrying out their international money transfers.
The most recent is a research article commissioned by Transferwise which reported that despite over a millions Aussies living overseas, they are not aware of the full costs of sending money abroad or the costs and fees that they actually pay their bank when carrying out a transfer.
The second was revealed by OFX, who found that 33% of Aussies would still stick with making international money transfers through their bank, with one of the main reasons being that respondents thought that “the savings wouldn’t be significant enough to bother with”. However, on the face of it, it would appear that people can stand to lose significantly when it comes to regular transfer payments and large money transfers. Banks charge a margin on the interbank rate that is often 4% over the rate at which banks will exchange money, If you partner with an international money transfer company, the margin is significantly lower, between 0.5 - 1.5%. It is even possible to beat the inter bank rate on some of the peer matching platforms. Banks also charge a fee on top of the transfer, typically this starts at $5 but can be as high as $50. If you are making regular payments or large transfers, these costs will weigh significantly on the money you get out of your exchange.
OFX Chief Skander Malcolm said “People should know they have a choice and if you’re making regular transfers or moving large sums, it could be worth your while to investigate a couple of options.” Take a look at our comparison to tool that makes it easier to compare money transfer companies to find the most cost effective way to send money internationally.
