HSBC’s move to drive international payments online
HSBC are hosting a competition on their public site: customers who make an international payment before the 1st of October 2015 will be entered into a prize draw to win back the payment, up to a value of £5000.
HSBC launched this competition to highlight a number of improvements made to its international money transfer services within internet banking, full details of which can be found in the latest UK Internet Banking Dashboard. One of the key changes is that the international payment fee structure is now simplified with significantly lower online banking fees. HSBC do not charge fees when customers move money to another HSBC account online. Additionally, while competitors such as Bank of Scotland charge a flat-fee of £9.50 for overseas payment, HSBC have introduced a highly competitive flat rate fee of £4.00 for payments to non-HSBC accounts when made via internet banking. The new fee structure means that HSBC customers making international payments in branch or by telephone will incur higher fees as indicated in the table below.
This is in contrast to other big banks such as Halifax offering one fee for sending money abroad, regardless of whether it is being made via online banking, over the phone or in branch. The fee is also the same for any currency or payment size sent internationally.
It is interesting to see that HSBC are differentiating themselves from competitors by engaging customers in a payments competition. While doing so, the bank should drive international payment transactions in to the more cost effective online channel.