The FX system is broken, let’s fix it
£5.6 billion lost
To determine the cost of a transaction today, consumers have to conduct a complex calculation multiplying the provider’s exchange rate with the amount they’re transferring, adding fees, and then repeat the same exercise using the real exchange rate on Google It’s time-consuming and difficult. That’s how so many banks and providers can conceal such significant revenue in exchange rate mark-ups.
£5.6 billion lost by UK consumers and small businesses in these hidden exchange rate mark-ups. Transparent pricing will end hidden fees and potentially help save billions for newly empowered consumers.
A Global problem
Developed nations need to up their regulatory game
Global remittances reached $714 billion in 2019 and the average global cost is approximately 7%. That means the world paid $48.7 billion in remittance fees in 2019. Reducing remittance costs to 3% by 2030 is a global target under the United Nation’s Sustainable Development Goal (SDG) 10.C. We have a long way to go.
According to the World Bank, “the single most important factor leading to high remittance prices is a lack of transparency in the market.”