Administrative fees, foreign exchange charges, SWIFT connection fees... SMEs and SMIs don't always know what's behind these headings. To help them understand, iBanFirst has created a hidden bank charges simulator.
Denouncing the obscure practices of traditional banks
Paris-based fintech iBanFirst, which provides a new-generation financial services platform, is denouncing the disguised or concealed charges applied by banking establishments. These far-fetched practices have a direct impact on SMEs and ETIs, who sometimes have to pay an amount corresponding to 1.5% of their transaction in exchange rates.
iBanFirst has carried out an unprecedented study of a dozen historical banks. After examining their official and administrative documentation, the startup observed three main types of concealment: exaggerated use of exchange rates containing "hidden semi-fees", theapplication of unmentioned fees (commissions, exchange fees, account maintenance fees, SWIFT fees), and opacity regarding the terms of exchange operations. To thwart these practices, iBanFirst has developed a hidden costs simulator for businesses.
Help companies save on bank charges
The simulator designed by iBanFirst enables SMEs and SMBs to estimate their potential savings on foreign currency transactions. All they have to do is select the bank used to send or receive foreign currency payments, enter their annual sales figures, the total amount of foreign currency payments sent or received, and the number of transactions generated by these payments. The result shows how much the startup can save the professional on exchange commissions and other charges.
To demonstrate the effectiveness of this new tool, iBanFirst uses the example of a company doing $1 million in foreign exchange a year. Its study shows that banks apply a margin of between 0.44% and 1.32% on transactions. On these same transactions, the company saves up to 10,000 euros, a sum that can be reinvested in a company's growth projects.
With the creation of this simulator, iBanFirst is denouncing the practices of banks already criticized for the opacity of their offers. The tool aims to put professionals back in control, enabling them to make savings that can be " re-used in more virtuous ways ". At the same time, the platform offers several solutions enabling these players to pay their suppliers abroad, to be paid in local currency, to manage intra-group flows and their foreign currency accounts, and to simplify their private transactions. It provides a range of financial services to meet the day-to-day needs of SMEs.