Moreover,
Why sending money abroad always new: However,
Why sending money abroad always:
A panoply of companies – like Wise. Nevertheless, Koho and Moneygram – simplified money transfers abroad, but for large Canadian banks, the process remains expensive and complicated.
Dick Newson, a SCOTIA bank client, tried last month to send 1000 euros (around $ 1,500 Canadian) to a friend in France.
There were so many codes. Furthermore. Moreover, It was not clear where they had to be inserted, with or without spaces
says the resident of Victoria, British Columbia. Meanwhile, After several tests, he finally managed to send his transfer form.
Dick Newson. Moreover. In addition, a Victoria resident, tried last month to send 1000 euros to a friend in France through the transfer service abroad of Scotia Bank.
Photo : Dick Newson
He knew that this kind of transaction could take a few days, unlike online transfers, which are instantaneous. However, two weeks later, her friend teaches her that she has still not received the money.
Mr. Furthermore, Newson’s banking branch redirects it to his international service. Meanwhile, which confirms that the sum was indeed sent to France two days after sending the form.
Where is this money made? Similarly, What did I hurt?
The representatives of her bank then give him numbers to communicate to the French bank in question which, she does not know what to do with these codes.
The people of the scotia bank to whom I spoke assured me that the money was not lost. For example. Furthermore, that it is always possible to recover it, but that it was poorly directed in one way or another. Nevertheless, They will try to understand what happened
dit Dick Newson.
A impasse
at 1000 euros – Why sending money abroad always – Why sending money abroad always new
Last week. his French friend informed him that her financial institution, Crédit Agricole, needed an MT130 form to resolve the problem.
Dick Newson therefore contacted the Scotia bank again. who replied that his file why sending money abroad always new was now closed, because the money had indeed been accepted by the French bank.
He why sending money abroad always describes the situation asimpasse
And is surprised by the mysterious disappearance of the 1000 euros.
Contacted by CBC/Radio-Canada last week, the Scotia bank has still not provided any explanations concerning this situation. We work in close collaboration with our customer to ensure that this problem is solved
said a spokesperson.
Processes secure. effective
The association of Canadian bankers. which represents more than 60 Canadian and foreign banks carrying out activities in the country, stresses that cross -border transactions are more complex than the transfers made within Canada because they involve several financial institutions, as well as various regulatory executives, exchange rate and payment systems.
Virements abroad involve secure. effective processes. which cause costs to why sending money abroad always new ensure that funds are securely reaching destination
says spokesperson Maggie Cheung, in a statement sent by email.
She points out that why sending money abroad always intermediate banks also charge costs, which increases the cost of transfers.
A real -time payment system. which would allow instant money transfers abroad, is still long in Canada.
Photo: Canadian press / Nathan Denette
Another element which is added to the costs. of these transactions: the measures implemented by financial institutions to rage against money laundering. the financing of terrorist activities. They why sending money abroad always new involve identity checks and checks, which slows down and complicates the process.
The transfer of international funds remain constant, regardless of the size of the transaction. This is why banks generally charge fixed costs rather than a percentage of total payment
specifies the association.
However. the costs collected by large Canadian banks are very often higher than elsewhere in the world. especially because they are very little to dominate the market, explains Werner Antweiler, expert in international finance and professor of economics at the University of British Columbia (UBC).
Several banks now offer this free service, as if the money transfer was completely free. Of course, this is not the case, because a higher conversion rate is applied to the exchange rate
he said.
It why sending money abroad always new is an oligopoly. which allows it to maintain relatively high costs.
He stresses that money transfers in Europe are instantaneous and much less expensive, thanks to increased competition, the regulatory framework and more advanced financial technologies. Our banking system is, in some ways, a little outdated
says the professor.
Why sending money abroad always new
Why sending money abroad always
What is an oligopoly?
An oligopoly is a market dominated by a small number of companies. In Canada, this is particularly the case in the banking, grocery, telecommunications and commercial aviation sectors.
Despite recent efforts to modernize payments. the Canadian system is not yet at the cutting edge of instant payment technologies, especially for cross -border shipments. Already widespread elsewhere in the why sending money abroad always new world. a real -time payment system (or real-time railin English) was to see the light of day in Canada in 2022.
Payments Canada. the why sending money abroad always organization that has. operates this infrastructure in the country, now plans to test this new transactional method this summer.
We therefore need new competitors to lower prices. it will take a while for people to realize that there are other options
Ajoute Werner Antweiler.
Werner Antweiler, expert in international finance and economics professor at the Sauder business school in UBC.
Photo: provided by Werner Antweiler why sending money abroad always new / Martin Dee
Replacement solutions to large banks
Shokhrukh Temurov. vice-president of why sending money abroad always ratings from North American financial institutions at DBRS Morningstaremphasizes that. smaller players offer better rates for money transfers abroad.
There is, for example, EQ Bank Who works with the WISE transfer system for this kind of transaction. Similarly, fintechs [entreprises de technologie financière] as Wealthsimple offer better rates
he says.
He adds that the digital approach. access to various payments treatment systems would reduce costs. but it suspects that certain platforms offer this service at a loss.
We do not know if it is profitable. if it is a strategy to gain market share.
Wise says it counts more than 650. 000 Canadian customers – including companies -, which why sending money abroad always represents growth of 32 % in one year.
The platform is linked to more than 90 banks. 6 payment systems worldwide, allowing it to send around two thirds of money transfers in less than 20 seconds.
It should be so easy to do the same with a bank
said Dick Newson. who is still trying to understand where the money he transferred last month.
With information from Anis Heydari, CBC
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