SMEs prefer big four banks for international trade despite higher fees

Despite typically higher exchange rate mark-ups and fees compared to specialist money transfer providers, 62% of small-to-medium enterprises (SMEs) opted to conduct international trade through the big four banks this year.

Data from comparison platform, Money Transfer, found that for every $20,000 exchanged through the banks, businesses could be paying up to $850 extra, compared with as low as $100 through a non-bank money transfer provider.

Larger businesses are significantly more inclined to use banks for their financial needs, with 74% opting for traditional banking services, compared to just 45% of small businesses.