Using your own bank to send money overseas may often be the first option that comes to mind, but as the 2020 Mozo Experts Choice Awards for International Money Transfers have revealed, it’s not the cheapest.
At Mozo, we understand that shopping around for an alternative can be stressful, which is why our Mozo Experts Choice Awards are here to help Australians make more informed decisions.
This year, our team of data experts analysed 30 different international money transfer (IMT) providers, including banks and non-bank online specialists, to determine which ones offer top value.
“Our research team obtained quotes from a wide range of providers and compared their exchange rates as well as their fees to make sure we were considering the full cost of any transfer,” Mozo’s expert judge, Peter Marshall said.
Online specialists win the biggest
WorldFirst and InstaReM had previously snagged Mozo Experts Choice Awards back in 2018 and they’ve risen to the top once again, thanks to their competitive exchange rates and fees.
“These award-winning money transfer providers all offer online services, so unlike banks, they don’t have to pay for branch networks,” Marshall said.
“The other thing is, the focus of their whole business is on money transfers, which allows them to put all of their efforts into doing that as efficiently as they possibly can.”
According to Marshall, the banks are also less competitive in their pricing because they rely somewhat on “lazy tax”.
“The banks are used to servicing people who are happy to walk through the door and pay whatever price is necessary to get some money transferred,” he said.
“But the online guys really need to offer sharp prices to compete with other IMT providers. So I think it’s almost two different markets.”
Citi the best among the banks
For Aussies who prefer the reputation of an established banking institution, you’ll be happy to know our experts have also unveiled the best international money transfer provider among the banks.
And in 2020, it’s none other than Citibank!
Every year since this award category began in 2016, Citibank has been crowned the sole winner of the Mozo Experts Choice Award for best value International Money Transfer Bank.
In other words, it has achieved the massive feat of taking out the award five years in a row.
Marshall offered one possible reason for Citibank’s continued success.
“They have quite a few branches in Australia but they’re also international. So they’re able to leverage that branch network to offer a better priced money transfer service than the other banks,” he said.
A question of safety
As for consumers concerned about the safety of their money transfers, Marshall explained that all providers considered in this Mozo Experts Choice Awards hold an Australian Financial Services licence.
“This indicates that they’re registered with the government’s Australian Securities and Investments Commission (ASIC),” he said.
“And should something go wrong and you end up in a dispute with them, you have an official body, the Australian Financial Complaints Authority (AFCA), to turn to.”
Your next stop
Interested in finding out more about the Mozo Experts Choice Awards? Head over to our 2020 Mozo Experts Choice International Money Transfer Awards page to read our methodology report or check out the full list of winners.