KOHO, Canada’s leading challenger bank, is proud to announce it has partnered with TransferWise, the global payments company to help Canadians uncover the true cost (fees) of sending money overseas.
By adding the ability to scan for remittance fees to their What the Fee calculator, KOHO has made it even easier for consumers to understand the hidden fees they pay for traditional banking. These costly, secret remittance fees can add up, often surpassing 5% and affecting immigrants who are sending money home to their families abroad.
“We started this company to bring awareness to issues like this. We believe financial products should default to transparency, simplicity and affordability,” shared Daniel Eberhard, Founder and CEO of KOHO. “We’re honoured to team up with TransferWise to help bring awareness to the financial clarity Canadians should demand,” he added.
To give Canadians the opportunity to better understand where their money is going, KOHO originally launched What The Fee in April 2019. The data gathered over the summer tells a clear story of those earning the lowest incomes are ultimately paying the highest fees in this country, often from banks that bill themselves as the no or low-fee option.
“For too long now, Canadians have not been fully informed about hidden fees when they send or spend money abroad. KOHO’s fee tracker will now allow consumers to calculate exactly how much they lose from inflated foreign exchange rates,” said Nick Catino, Head of Public Policy at TransferWise (Americas). “We are really excited that KOHO has joined TransferWise in raising awareness on the lack of transparency in international payments.”
New research from KOHO has found some eye-opening data that reveals just how much Canadians are paying in undisclosed fees.
- The average Canadian pays around $159 in bank fees per year, some of the highest in the world (that’s more than what most savings accounts with a $12,000 balance would earn in annual interest)
- People who are in the bottom 10th percentile of account balances are paying almost 13% of their income in fees, whereas the top 10th percentile are paying .33%
- Users of smaller financial institutions spend 50% less in plan fees (i.e. regular account charges) and 10x less in interest fees on a monthly basis than users of the big 5 banks
With the goal of helping to lead the industry towards Open Banking, KOHO continues to push for more transparency across the Canadian financial system. From their no hidden fee structure to spending insights in real-time, transparency is ingrained in all aspects of the company.
Uncover your hidden bank fees using What The Fee and see how your account compares to the average Canadian’s.
KOHO offers a smart spending account with no-fees. The full-service account comes with a reloadable Visa card that earns cashback on every purchase, and an integrated app that helps users spend smart and save more. Rooted in the belief that the financial system should be open and intuitive, KOHO aims to remove friction from the banking experience through a more human and transparent approach.
TransferWise is a global technology company that’s building the best way to move money around the world. Whether you’re sending money to another country, spending money abroad, or making and receiving international business payments, TransferWise is on a mission to make your life easier and save you money.
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