October 16, 2015
CIBC is eliminating fees for Canadians who send money overseas, making it feasible for them to send money back home to support their families and manage personal affairs.
"We're making it as affordable as possible for our personal banking clients to provide for their loved ones back home by removing upfront fees when sending international remittances," said Larry Tomei, Senior Vice President, National Sales and Service at CIBC, in the press release. "Canadians can now avoid paying upfront charges, which can be significant, and have the confidence in knowing that the amount of money they send will be received by their loved one."
The new no-fee CIBC Global Money Transfer service lets customers with CIBC accounts send money overseas through online banking or at a CIBC banking center. The new service currently lets its clients send money to 34 countries and is expected to expand to 60 countries by the end of 2016.
"After listening to our clients who are looking for a better and less expensive solution, we've enhanced our technology so that they can send money overseas quickly and simply online and in our banking centers with no added fee," said Vineet Malhotra, Managing Director and Head, Alternate Solutions Group and Retail Solutions Group at CIBC, in the press release.
"With our industry-leading platform for foreign exchange, we are disrupting the market and believe we will deepen our existing client relationships and attract more clients to our bank, particularly from Canada's growing newcomer population," Mr. Malhotra added.
"It's common for Canadians to send several hundred dollars per transaction, which speaks to how widespread the need is for a faster, more affordable solution to send money globally and CIBC's commitment to supporting the needs of newcomers to Canada and immigrants who have long called this country home," Mr. Tomei said in the press release.
Global remittances amount to $500 billion every year. The industry has grown by leaps and bounds; yet, for a consumer, there are several issues. There have been multiple issues in the past such as high transfer costs, limited money distribution methods, limited brand options, limited ways to deal with money, etc. The advent of new players in this space is redefining the solutions provided to these problems by this industry which was known to be mainly duopolistic in nature till a few years ago. Entrepreneurs have taken note of the market opportunity in this segment and are establishing remittance platforms making use of cloud, mobility, blockchain and other technologies and concepts.
CIBC’s initiative to eliminate the remittance fees seems to look like the company has noticed the opportunity and is ready to grab the market.
CIBC is a leading Canadian-based global financial institution with nearly 11 million personal banking and business clients. Through its three major business units—retail and business banking, wealth management and wholesale banking—CIBC offers a full range of products and services through its comprehensive electronic banking network, banking centers and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in its Media Center on its corporate website.