Banks have long been considered the safest place to send and store money. But after multiple scandals and blatant corruption, financial institutions have been outed as the for-profit bullies that they are.
Although they promise that they’re looking out for their customers, small businesses are realizing that it’s quite the opposite.
Here are 3 secrets that the banks don’t want small businesses to find out about.
1. They charge unnecessary hidden fees
Banks love making money off their customers, but none more than small businesses.
In 2015, six major global banks were fined $6 billion between them for setting inflated exchange rates to cheat their customers.
Lloyds Bank confessed to charging extra foreign exchange fees on small businesses, which they described as less sophisticated
In this case, the additional fee was revealed to be 1.5% per exchange — with the potential to increase with a bank manager’s approval.
And as often happens with banks, this information wasn’t disclosed to clients. This unfair exchange inflation could make or break your small business.
While bank profits grow, countless small businesses are harmed by banks’ negligence.
“Bad bank behavior” is notorious, and has led many people to avoid trusting their money with these corrupt institutions.
2. They use outdated technology
That’s right, today’s banks are still using technology from the 1970s.
This is why it’s often faster to fly and pay your supplier in person, than it is to send them a bank wire transfer.
Technology has made everything more global…except for the banks.
And since banks care more about revenue than they do about relationships, they’re fine with using this ancient technology.
They’ll make their profits by siphoning charges from your small business.
Banks aren’t made for small businesses. They offer personalized services to larger companies that banks like Lloyds consider “more sophisticated,” and automated services to the mass consumer market.
Small businesses are left in the dark, unaware of what they’re being charged and where their money is.
One useful thing that banks have done is inspire startups to bridge that gap for them.
Businesses like Veem, which offers a transparent and simplified platform for sending global B2B payments that doesn’t charge any hidden fees.
The world is beginning to understand that banks are looking after themselves, and are working to supply that enormous demand.
3. They have no idea where your money is
Due to their outdated technology, banks have no idea where your international payments are.
Bank wire transfers take as long as they do because your money is being bounced between intermediary banks along the way before reaching your receiver. And they’re expensive because each one of these middlemen take a chunk out of your money before sending it along.
People are often shocked that they can track their $5 Amazon order but not their $10,000 supplier payment. This is a capability gap that puts your small business at a disadvantage.
Small businesses need to go global to be successful, but it’s difficult to trust a financial institution that can’t even track a payment.
Veem prides itself on providing the best payment platform for small businesses, because that’s exactly who is was designed for.
With Veem, the stress and frustration of using traditional banks to make international payments is replaced with a network that’s not only faster and more secure, but also charges no hidden fees. In fact, Veem doesn’t charge a wire fee at all.
Operating in over 60 countries, and with over 100 combined years of payments and IT experience under our belt, Veem handles the hard parts of transferring money abroad. Currency exchange, tracking payments, and moving money quickly are all done better than your bank, without the fees.
Set up an account with Veem today, and say hello to simple payments.