/ Finance

The Outdated Industry Costing UK Companies $7bn a Year

The 21st century has seen an exciting growth in startups and SMEs. The costs of starting businesses are far lower now than in the 20th century. In all industries, small businesses have chipped away at the market caps, often dominated by two or three large corporations. The SME market now has over 100 million businesses globally, increasing 8% annually, with SMEs now representing around 99% of all enterprises[1]. The boom in startup culture, combined with technology spurred globalisation, has made operating internationally far more affordable for small businesses than in previous years. SME international trade in the UK is now worth $935 billion, with businesses transferring an average of around £35,000 every month internationally.[1:1]

As fantastic as these statistics might seem for anyone looking to start up a company trading internationally, the costs of trade are likely to be a minor concern when compared to the costs of transferring money alone. SMEs are paying out £4bn a year in built-in costs when transferring money overseas through the UK’s high street banks.[2] On average, a transfer of £75,000 within the EU will cost a small business £1,822; with banks charging up to 4%, some even more.[2:1][3] On top of these high rates, the banks hidden fees cost UK enterprises a further £3.96bn in 2014.[2:2] With 72% of SMEs making international transfers, it’s shocking to hear that only 20% of SMEs know the true cost of their transfers.[4][3:1]

Comparing transfer providers is time consuming work, and with hidden fees so common, it’s difficult to know who truly offers the best rate. Here at Find.Exchange, we believe we have found a solution that will save SMEs time and money when transferring funds overseas. The comparison industry has been booming in recent years. From car insurance to travel, you can compare hundreds of providers across the globe. However, despite costing UK businesses around £7bn a year, comparison companies do not offer a degree of transparency that SMEs require.[5] This is where we come in.

At Find.Exchange we are offering users the ability to see which provider offers the lowest transfer rates in real time, coupled with live exchange rates; saving SMEs time and money. Our automated comparison service clears the air, showing the user exactly how much they will get charged, with no extra costs and no hidden fees. This transparency is designed to make transferring money a more comfortable experience, giving enterprises and individuals comfort in knowing they are getting the best available rate.

We have our eyes on the future. The money transfer industry is undoubtedly due for an upgrade, and having spotted the potential of implementing cryptocurrencies, our team are aiming to go a great deal further in saving SMEs time and money. Stay tuned at https://Find.Exchange

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  1. http://ec.europa.eu/eurostat/statistics-explained/index.php/Statistics_on_small_and_medium-sized_enterprises ↩︎ ↩︎

  2. https://www.telegraph.co.uk/finance/yourbusiness/12097516/Banks-charge-small-firms-extra-4bn-on-top-of-standard-fees-for-money-transfers.html ↩︎ ↩︎ ↩︎

  3. https://www.moneymover.com/media/uploads/files/UK-SME-International-Payments-Analysis-Summary.pdf ↩︎ ↩︎

  4. https://www.worldfirst.com/downloads/GlobalBarometerFeb17.pdf ↩︎

  5. https://www.theguardian.com/money/2017/apr/08/leaked-santander-international-money-transfers-transferwise ↩︎

Sam Allen

Sam Allen

We find and compare the best exchange rates between banks, FX bureaus, post office, supermarkets and online money providers. But we're working on something even better...

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