British businesses charged £21bn per year to transfer money overseas

New research from Transferwise reveals ‘outdated’ fees are costing British businesses

A recent study reveals that international money transfers are costing UK businesses £21bn per annum.

Researchers from online currency exchange service Transferwise, found that banks currently charge British business owners approximately 5% for overseas transfers of £1,000 and up to 20% for transactions worth £100.

The research follows the release of official trade figures, which revealed that exports from the UK are on the up.

Founded in 2010, Transferwise was involved in moving 10m euros in its first year of operation, saving its users £500,000 in banking fees.

Co-founder of Transferwise, Taavet Hinrikus commented: “Banks continue to see the hard work of businesses as a cash cow – an easy way for them to gouge money and boost profits.

“Sky-high charges and the use of poor exchange rates means they pocket an average of between 3% and 5% per transfer for a practice that’s little more than a few clicks of a computer mouse.

“These charges are totally outdated and hail back to the pre-digital, analogue era when banks had a stranglehold over the economy.”

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