CIBC (CM.TO) (CM) is eliminating the fees for Canadians to send money overseas, dramatically reshaping the $30-billion-a-year Canadian international remittance market with an innovative no-fee service making it cheaper and easier to send money back home to support family or 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," says Larry Tomei, Senior Vice President, National Sales and Service, CIBC. "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 makes it easier, faster and more affordable for clients to send money overseas through online banking or at a CIBC banking centre. The service, currently available to more than 34 countries, will be expanded to include approximately 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 centres with no added fee," says Vineet Malhotra, Managing Director and Head, Alternate Solutions Group and Retail Solutions Group, CIBC.
"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 adds.
Canadian remittance market valued at $30 billion
Valued at US$23 billion ($30 billion) by the World Bank, Canada's international remittance market is one of the largest in the world as more than seven million immigrants from around the globe have made Canada their home with many maintaining ties to family, property and business investments abroad.
"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 says.
Some of the features of the new CIBC Global Money Transfer service include:
No upfront fee to send money abroad
Competitive exchange rates
Daily transfer limits of up to $2,999.99 via online banking and up to $9,999.99 in total (through online banking and CIBC banking centre combined)
Most transfers will be received by the recipient within one business day
Available via CIBC online banking and CIBC banking centres from CAD or USD accounts