In January this year, Santander senior executives met in the principality of Andorra. Santander's innovation director gave the seniors a warning that a massive amount of their profits were at jeopardy. This was because there were new competitors in the money transfer market that were giving customers better deals. In documents leaked to Guardian Money, it was revealed that Santander bank made about 585m Euros from money transfers which was equal to about a tenth of its previous year global profit of 6.2bn Euros. It was also evident that the banked charged six times more than its bitter rival Transfer Wise for sending 10,000 Euros from UK to Spain.
The document exposed how much big banks make more from giving their customers and clients exchange rates that are very poor. It also showed that a huge amount of profits the banks made came from FX margin rather than the fees they directly charged.
Brexit and money changing & transfer
Many people all over the world have been having worries about changing and transferring their travel money due to Brexit. Martin Lewis, who is a money expert, said that this is not true as the triggering of article 50 was not going to change anything as it means very little. Other experts do not agree with him as they argue that this is the best time to change and transfer currency before article 50 has been triggered lest UK financial market is plunged into choppier waters. The fear of most people, Britons in particular, have worries of the Pound Sterling losing value due to Brexit.
Email money transfer
There is good news for people who want to make huge money transfers. This has been made possible through E-mail money transfer. With platforms such as Interac Email Money Transfer, it only takes you 20 seconds to send money. The good thing about this, unlike the huge fees banks charge you, sending or transferring money via email is absolutely free. Having sent money to whoever it is, they just have to answer a security question to complete the transaction. Interac money is credible with any bank. The money is transferred straight out of your and transferred to the other person, receiver, immediately he or she opens their email; they get the notification and all they have to do follow the simple instructions and steps they have been asked to. With other banks giving you a service package which has one or two of these types of transactions per month, you will only be required to pay $1.50 which is enough to be expensive.
Interac did a market research that suggested many people preferred emailing gifts in form of money via e-mail money. This is a convenient way to send money to your child or children in school, family that is abroad and also repaying your debts. It is cheap and safe and hopefully with time, people will move away from the old fashion ways of writing and sending cheques that tend to bounce if not properly cashed and bank transfers that have been overly expensive. This will also see people saving a lot of time for they do not have to queue in the banks