Forex disrupter TransferWise reports strong Aussie dollar growth

TransferWise chief executive Kristo Käärmann said Australia is one of the best-performing markets for the London-based fintech unicorn with customer numbers up more than 50 per cent over the past year after the competition regulator lashed the major banks for their high foreign exchange fees.Releasing TransferWise’s annual results, Mr Käärmann told The Australian Financial Review he is hopeful Australia will follow the European Union and legislate to increase the transparency of foreign exchange costs in response to the ACCC report.TransferWise, which has more than 6 million customers globally, announced on Wednesday a net profit of £10.3 million ($18.7 million) for the year ending March 2019 on revenue of £179 million, up 53 per cent. It moved $6 billion in Australian dollars to and from the country and its new multi-currency account and debit card had a faster adoption in Australia than the UK, Europe and the US, it said.

The Australian Competition and Consumer Commission (ACCC) this month said it stands ready to take action if banks or other providers mislead customers about FX charges after finding the market lacks transparency and that fees are complex.

“The ACCC’s report into foreign currency proves what we’ve been saying for years, that complicated and in-transparent pricing makes it impossible to shop around for a better deal on money transfers,” Mr Käärmann said.

“Banks are charging up to 4 per cent of the transaction in fees, but almost all of that is hidden in a poor exchange rate. People don’t know what they’re really paying, so the big four banks have a monopoly and sky high prices have become the norm.”

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