Its a mystery which transferring money is so expensive today. Banks expect consumers to believe that we need to pay charges to transfer our money when we can send messages on WhatsApp across the globe in milliseconds – for nothing!
It should not be expensive to transfer money and yet for the average consumers it costs a bomb.
The main issue with transferring is the hidden charges. Banks charge their consumers by adding a percentage to the exchange rate.
For example, you could trade US Dollars for Great British Pounds at .87p banks could charge .91p.
As a consumer, this may not see much. In reality, this equates to 4% fee. This is $400 levy on a transfer of $10,000 – something which should cost nothing in reality.
The greediness of banks has created opportunities for fin-tech start-ups.
One of my favourites is Revolut.
Revolut is an online banking platform that offers consumers a range of opportunities at a fraction of their regular cost.
• Free withdrawals of up to $400
• Free money transfers
• Easy way to split bills
• Online shopping without fees
• Free currency conversions
With this range of offers, one may ask what the catch is and the truth is I don’t know, but I could have a guess. Revolut has such a wide range of features that is attracting hoards of people. It is available around the world, however here in Ireland it already has 30,000 customers in 18 months – an impressive feat for country which has customers who remain dedicate ti their own brands.
It is very likely that they are bringing people onto their platform to monetise their data.
Some people would be apprehensive about this, however it sounds pretty great to me.
I cannot find fault with Revolut’s offering to so far. Their service is cheap, accessible and geared towards the
Most banks seem to be asleep when it comes to digital disruption – its great to see a service like Revolut taking advantage of the opportunity.
Find out more about Revolut here.
It looks like the service is only available on Europe, however it seems they have plans to expand to the US as well.
If you found this interesting, read more about saving and its impact on investing on our site.