The CBA will absorb correspondent bank charges on customers’ currency transfers
Commonwealth Bank has announced that it will absorb correspondent banking fees on all currencies offered for currency transfers (FX) as part of a move that is expected to save customers millions of dollars each year.
With international borders opening up and more Australians sending money home for holidays, now is the perfect time to make international money transfers (IMT) easier and cheaper. .
Correspondent banks help move money between countries, however, they can deduct fees from an IMT. In some cases, they deduct a percentage from the amount, often leaving customers surprised at the amount that was deducted from their payment transfer.
CBA now absorbs these correspondent bank charges for IMT on behalf of our clients, which means more surprises from correspondent banks. This change will save our customers money and simplify currency transfers by providing greater price transparency and greater certainty about the final transfer amount.
Ethan Teas, ABC’s Executive Managing Director, Payments, said: âOur clients have told us that it is difficult to predict the cost of IMT, especially when correspondent banks around the world are deducting a fee from the transfer amount. of a client. Last year we started absorbing these fees from our four major currencies – USD, EUR, GBP and NZD. We have received such positive feedback from our customers that we have decided to extend it to all of our currencies offered in over 200 countries. “
âWe understand that this has been a particularly difficult time for many and LMI shouldn’t be a point of stress or confusion. We continually review our foreign exchange costs and work to improve our digital IMT experience for clients. Today’s announcement follows a number of CBA’s IMT and FX changes, all designed to simplify the process for our clients, increase transparency, and lower fees for anyone wishing to transfer money to the network. ‘foreigner.
In addition to absorbing correspondent banking fees, CBA FX and IMT updates include:
New Zealand: CBA will reduce IMT fees on AUD to NZD transfers from $ 6 to $ 1 when using NetBank or the CommBank app until January 21, 2022.
South Pacific: CBA has removed the transfer fee for IMT for five South Pacific currencies * to support migrant workers and Australians who wish to return remittances to friends and family. In 2020, the CBA reduced exchange rates for Pacific communities and they are among the lowest rates offered by the CBA.
India: To support the Indian community during the pandemic, the CBA waived transfer fees for three months, from June to August 2021, for any customer sending IMT in Indian Rupee (INR).
âWe know that LMI plays an extremely important role for communities. Money sent to friends and family contributes a significant portion of household income and helps improve the general economic conditions of many people around the world. We want to make it easier and more affordable to send money around the world to better help our customers, âMr. Teas said.
CBA’s intuitive foreign exchange platform gives customers fast, 24/7 access to overseas transactions from NetBank or the CommBank app, so they can send money around the world whole in a few moments. It’s secure too, with powerful digital security to provide assurance that our customers’ money is safe, even as it travels around the world.
The CBA will initially absorb correspondent banks’ fees for all IMT performed in NetBank, the CommBank app and in branch, CommBiz will follow in 2022.
* The IMT fee waiver applies to transfers from an Australian account in the following Pacific currencies:
Fijian dollar (FJD)
Papua New Guinea Kina (PGK)
Solomon Islands Dollar (SBD)
Vanuatu Vatu (VUV)
CFP Franc (XPF)