What is your experience of conducting currency transfers with Irish banks? Probably not great, considering that the system is fine-tuned to get the most money out of you as possible! It is no secret that Irish banks have been abusing currency transfers for years, whether they occur through personal or business accounts.
How do they do it? The Irish banking system is teed up to make currency transfers work in their favour. Firstly, there is a charge for transferring, then there is a second charge known as a currency conversion charge and, to top it off, you’ll receive a terrible exchange rate. The good news is that new financial services, such as TransferWise and TransferMate, are facilitating significant savings in currency transfers by undercutting banks with minimal charges and mid-market rates.
What is TransferWise?
TransferWise has a commitment to giving you the base currency position plus .001%. Their technology is fantastic, providing a smooth service without any of the unnecessary delays typically associated with banking systems. TransferWise integrates with Xero and they can even provide you with a MasterCard. The great bonus about using a modern fintech application such as this is that the user experience is of such high quality that you always know exactly who you’re paying, unlike with banking statements that are illegible – unless you’re in the habit of memorising payment numbers!
From a personal account perspective, TransferWise is great for saving you money while you spend abroad. If you’re travelling, you can simply top up your TransferWise account, spend with ease and be sure you are getting the best rate for that currency. Sending money to friends and family is also a straightforward process, without any surprise fees.
For business-to-business currency transfers, the benefits are substantial because larger amounts are being handled. For example, if you have subscription services with overseas providers and you use the normal currency transfer channels such as Bank of Ireland or AIB, there is no doubt that you are being heavily charged with every transaction. However, if you were to transfer the necessary money into TransferWise to pay for your subscriptions you would make serious savings simply because of their great rates.
A few weeks ago, we were in the process of receiving €20,000 from a sterling account. Our client asked us did we think Barclay’s rate they had been given was any good. We weren’t impressed and suggested that they transfer the money via TransferWise. It was a suggestion they greatly appreciate because, in the end, it saved them €500! This is undoubtedly a significant saving which relied on a simple bit of fintech knowledge our team had at hand.
TransferMate – the Irish currency transfer solution
This Irish company is expanding rapidly and with there being such a demand for these kinds of fintech services that keep pace with modern business demands, it’s easy to understand why. TransferMate offers a B2B currency exchange service with very competitive rates. By enabling users to lock-in to real-time exchange rates with no B2B payment fee, TransferMate is helping businesses worldwide to save a lot of money while conducting international payment transfers.
TransferMate not only beats the banks with their numbers, but also with other added benefits such as 24/7 customer service, same day cross border payments, automated payee notifications and the ability to bulk upload payments. It has flexible API integration, allowing you to easily link up with other accounts such as Sage, Quickbooks, SAP, MYOB and JCurve. They’re also happy to discuss developing a solution for your client should you require it.
A new way of understanding banking
As we talked about in our last blog, “Challenger banks are revolutionising how you do banking”, the traditional way we are used to dealing with banking systems is being eroded. Ireland’s pillar banks provide a myriad of financial services under the one roof, from pensions to mortgages to currency transfer to business lending to investment protection to overdrafts, etc. The future of banking will instead be dominated by niche players specialising in specific services and providing much more user-friendly applications with competitive pricing.