Last week, Canstar honoured OFX with a 5-star rating for international money transfers making this the first year that a non-bank international money-transfer provider has achieved the top ranking. Using a sophisticated methodology comparing cost and features, Canstar researched and rated 19 international money transfer providers yet awarded only OFX and two others with the top 5-star ranking. The award confirms OFX’s commitment to both exceptional pricing and exceptional service.
Internationally money transfers is a rapidly growing market segment. According to the World Bank, Aussies send over US$2 billion overseas annually, and in just the last 20 years, global personal remittances have gone from US$100 billion annually to over US$550 billion1. While 80% of Australians say they would transfer money internationally with their banks, savvy consumers are increasingly moving toward more affordable providers who also deliver more personalised service.*
“I think some consumers can get lulled into a sense of complacency, perhaps thinking that the value of the Australian dollar that’s quoted on the nightly news is the value that they’re going to get when they exchange money,” said Canstar Group Manager, Research and Ratings, Mitchell Watson.
This assumption could be costing Aussies millions of dollars a year. In fact, research conducted by Galaxy Research on behalf of OFX showed that an alarming 52% of Aussies were unaware of the hidden cost of exchange rate margins charged by most banks. When they were informed of the costs, 75% of Australians considered the costs ‘very high’ or ‘a bank rip-off’.* At OFX, we agree. That’s why we keep our fees and margins low and transparent, so customers can make an informed decision.
When CANSTAR compared transfers of AU$100,000 across multiple currency corridors, the cash-in-hand difference between the highest quoted rate and the lowest quoted rate was often above AU$3,000. Wow. In evaluating 9 popular currency pairs, CANSTAR weighted pricing at 80% of the total score while services and features made up the remaining 20%.
At OFX, Head of Australia and New Zealand Scott Redmond, says price is very important, but it’s not the be-all, end-all. “It’s smart to move away from the high margins charged by most banks, but it’s also important to choose a provider who has a robust platform that can function in times of heavy volatility like Brexit.” Redmond pointed out that during Brexit, a number of banks and transfer providers closed their doors, but OFX remained open. “Currency markets move fast; customers need to choose a provider who can keep up. Otherwise, you may lose control of your money during major market fluctuations and that could be very costly.”
The good news is: customers have options. With CANSTAR’s rigorous independent assessment, Australians can be confident in their choice of international money transfer providers. At OFX, we’ll continue to innovate in all our operations, so our customers can continue to have the rapid, affordable transfers they deserve.*Survey conducted by Galaxy Research on behalf of OFX (August 2016). Sample size: 1000 Australians.
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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. OzForex Limited (trading as OFX) and its affiliated entities 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.