The final ACCC report of the Foreign Currency Conversion Services Inquiry found that Australian consumers are paying too much in foreign exchange services as a result of confusing pricing and a lack of robust competition. The report found that consumers often struggle to make informed decisions about alternative providers and use one of the ‘big four’ banks for foreign exchange despite the availability of much cheaper services.
As a specialist global money transfer service, listed on the ASX since 2013, OFX delivers higher savings for our customers, compared to the major Australian banks as well as outstanding service, shown by our global NPS scores reaching +67.3, compared to banks in the -15 to +4 range.
So why don’t more Australians take advantage of this?
There are 2 big reasons: first, most Australians (over 50% in OFX’s last consumer survey of 1,000 Australians nationwide2) did not know there was a better value alternative. Secondly, there is a concern amongst consumers and small businesses, understandably, about whether they could trust an alternative to the major banks.
This is despite the fact that only 52% (of those we surveyed) believed they would get the best rate from their bank when transferring money overseas, with half believing the approximate bank charges on their transfer were a ‘rip-off’. Only 3% believed their bank transfer fees were a ‘fair exchange for the transaction’.
How do we offer such great rates?
Our philosophy has been, and always will be, to offer great rates and great service.
When it comes to getting the best rate, we have 16 partner banks (which means over 150 bank accounts in locations around the world, across 55 currencies). Rather than using expensive bank networks, we simply send the money directly between our bank accounts, or, if we have funds in the country our clients are sending money to, we don’t send it at all, we just use the funds that are there. It’s that simple.
At OFX, our philosophy has been, and always will be, to offer great rates and great service.
What about the trust factor?
Trust underpins every service, but none more so than financial services. Our clients give us their money, and trust that we will get it to to their stated recipient. As our parent company is publicly listed on the ASX and regulated by over 50 regulators globally, this means we have to play by a long list of rules. However, at OFX we believe in going above and beyond.
Along with offering great rates, the teams are always striving to build trust by marrying the human touch with great technology through personalised service and support 24/7. Whether this be through our skilled fraud and compliance team who work hard to protect your money, or the customer service team, who are there to guide you through what can be a daunting process. We understand that transactions are often more than just money. But don’t just take our word for it, here are some of our clients, and their stories:
James Johnson, Managing Director and Founder of energy efficiency company Shine On estimates a saving of $80,000 over a four year period since switching to OFX, “The saving has been significant for our business and with it, we’ve been able to invest in areas that improve our offering and ultimately the service to our customers,” James explains.
Jess and Danny
For customers Jess and Danny, their dream of an overseas wedding was made possible with the savings from OFX, “my accountant husband was also happy as OFX provided the lowest fees, so we were able to save $256 on transaction fees alone!” says Jess.
Olivier was able to turn a passion for importing luxury cars into a reality by using OFX. From there, Olivier has used OFX to buy 2 houses in Australia and France. “Whenever I’ve used OFX, they’ve been absolutely wonderful. The customer service you receive makes it so much more personable than the banks and you really feel like they care about your needs.“
So, in summary – we agree – Australians deserve a better deal, but, while that is being worked through by the ACCC, remember, you’re allowed to assess your options when it comes to your money. With OFX, you can trust that we’re a better deal, with great rates and personalised customer service 24/7.
1Average savings based on published rates of ANZ, Westpac, NAB and CBA on a single transfer of AUD$10,000 to USD between 6.9.18 and 8.10.18 excluding weekends. Transaction costs excluded. Quoted savings are not indicative of future savings.
2Galaxy Research study completed for OFX in August 2016 on a sample of 1000 Australians nationally aged 20+
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.