More than half prefer new money transfer services to banks 

Fees charged for international money transfers cited as main reason for customers turning away from traditional banking services.

More than half (60%) of consumers now favour using new money transfer services over traditional banking services, according to research from FXcompared Intelligence.

The survey of 2,000 UK adults focused on payments ranging from less than £1,000 to more than £1 million. It suggests 60% of respondents see fees charged for transactions are a major consideration when picking a money transfer service.

A similar number said they looked closely at the exchange rate offered when deciding how to make international transactions.

Despite the trend away from traditional services and the rise of disruptive fintech services such as TransferWise making waves, 35% of those asked said they would always use the banks regardless of the circumstances.

FXcompared managing director Daniel Webber commented that in recent months the currency market has been “punctuated by questions related to online and peer-to-peer foreign exchange platforms and their ability to eclipse existing retail currency services in the UK”.

>See also: TransferWise raises $58m in Series C funding round

“This new data from FXcompared shows that since many consumers consider rates of exchange and transfer fees as important factors when transferring money, only a minority now trust in their banks for these services,” he said.

“A sophisticated, often younger, majority, now undertake their international money transfers with other non-bank providers.”

FreeAgent launches £1m crowdfunding campaign

Young fintech company FreeAgent, whose goals include the “democratisation of accounting”, has launched a crowdfunding campaign on Seedrs with a target of £1 million.

The accounting service is targeted at UK micro-businesses and freelancers. The business is hoping to attract members of this community as well as those with an accounting background to invest in the company.

The funds have been earmarked for accelerating development of its accounting product.

FreeAgent CEO and founder Ed Molyneux said he is hoping to change the perception of accounting as an “unglamorous, under-served backwater of the software industry”.

“We believe that by focussing specifically on the needs of micro-businesses, we’ve been able to completely reinvent this category,” he continued.

“FreeAgent is already empowering many thousands of people to take control of their business finances and to view accounting as an integral, straightforward part of their working life, rather than something to be feared.”

>Further reading on currency: Focus on the Swiss currency crisis

Praseeda Nair

Praseeda Nair

Praseeda was Editor for from 2016 to 2018.

Related Topics