Hidden business in valentine1/31/2024 ![]() They should follow up on their promises with action, by making clear and, ideally, reducing any international payments mark ups. So what’s the solution? Well, it would help if banks showed their love for SMBs with more than words. Particularly in the context of a cost of living crisis, these inflated costs add insult to injury and, more widely, affect the economy as a whole by limiting SMBs’ ambitions and stifling their growth potential. SMBs face enough obstacles to business success without the added burden of high, hidden fees on international payments. 59% of UK SMBs are also looking to take their operations abroad - a goal equally hindered by the reality of hidden fees. And this doesn't just affect those businesses looking to expand internationally. Perhaps unsurprisingly, the report also found that 24% of SMBs cited the cost and inconvenience of international banking services as a major deterrent to international expansion. ![]() This standard industry practice doesn’t simply make international payments more expensive for SMBs - it often makes hopes of expansion abroad altogether impossible. Fees are not only high, but often hidden through markups within the exchange rate. ![]() Valentine’s Day is as good a day as any to reflect on this imbalance - and why SMBs may be feeling blue.Ī new report conducted by PublicFirst and commissioned by Wise found that SMBs lost a shocking £3.6bn in FX fees when selling goods and services overseas in 2022, with all UK businesses losing £4.2bn. However, the relationship between banks and SMBs is decidedly one sided and unhealthy - especially when it comes to international banking. And it’s no surprise - SMBs constitute 99.9% of the UK business population and a significant part of banks’ customer base. Banks often profess their love of small- and medium-sized businesses SMBs.
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