Small businesses claim FinTech service is better than banks

posted by 5 years ago in News

A massive nine out of ten SMEs (87%) have stated that, when it comes to foreign exchange, they receive better service from FinTech special providers than the banks.

New research, carried out by Work First, also reveals that 89% of SME bosses would recommend using a specialist provider for their international currency transfers compared with just 35% of those using a bank.

1,000 small and medium-sized business decision makers were surveyed in the poll which also found that:

  • 85% felt that specialist providers demonstrated a better understanding of their business needs
  • 94% thought they delivered a more tailored proposition than the banks
  • 88% believed alternative providers provided greater transparency on fees

Whilst the figures provide a worrying outlook for the banks the research also concluded that awareness of FX specialist providers is not as far reaching as it should be, with 31% of those asked completely unaware of providers outside the banks. What’s more 30% stated that the bank was unable to meet their requirements and 88% of those affected didn’t switch to an alternative provider.

Head of, Philip Brennan, says it’s more important than ever that small and medium sized business leaders adopt effective currency strategies:

“Volatility is expected before and after the EU referendum result in June so it’s crucial that businesses have a robust system in place for transferring money internationally. They have every right to expect greater flexibility, more transparency and better value and this is what alternative providers are offering. It’s hardly surprising that SME leaders are dissatisfied with the traditional banks for their international currency transfers. It was revealed earlier this year that small companies were being charged £4 billion per year in hidden bank charges to transfer money internationally. Smaller enterprises have not got that money to waste and deserve transparency when it comes to FX services. Any savings here go straight to a businesses margin and represent getting a better deal improve a businesses performance. More small businesses are discovering the quality service that alternative providers can offer and the banks will have to improve if they’re going to continue to compete.”

Data from World First shows that the average UK trading overseas made international transfers totalling £256,700 last year.

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