As Canadian businesses spread their wings across borders, Scotiabank is introducing digital International Money Transfer (IMT) for Business, making it more affordable and efficient for companies to send payments to their international suppliers, vendors or contractors.
Scotiabank recently launched its International Money Transfer (IMT) for Business service in response to spiking demand from businesses who seek an easier, low-fee means to make overseas payments. The new service enables companies to send local currency payments up to $50,000 to 20 destinations worldwide1, using a simple payment process on ScotiaConnect®.
In addition to the simplified IMT payment experience, clients can save on fees, since each transaction is priced at a flat rate, and for most destinations no deductions are made when the recipient receives the payment (subject to certain exceptions2).
The world shrinks for Canadian businesses making global connections
“The world is shrinking, as access to global markets becomes easier,” explains Kim Salti, Director, North American Business Payments at Scotiabank. “Now, as more companies build their niches and specialties, they are choosing international vendors, suppliers and contractors from the US, UK, Europe, Australia. And they are asking, “How can I make these payments to partners who help me run my business?”
She explains that IMTs are a great option for companies who seek a variety of payment options depending on their specific transaction needs. For example, while traditional wire payments are ideal for same-day, multi-currency payments for rushed requests, many companies may desire a lower-cost means to handle non-urgent, lower-value transactions. And, while ‘IAT’ payments are a fast means to make US-bound payments, IMTs provide international payments in the local currency to 20 countries.1
“An IMT takes advantage of the current modernization of international payment systems and creates access to the global banks’ lower value, domestic clearing systems, so it can provide local currency payment finality in two to five business days, at a lower cost.”
IMTs also offer the reassurance of streamlined processing since an IMT has fewer ‘touch points’ along the payment chain than a wire, which typically sends the payment via a number of banks. Since an IMT is transmitted online directly to the recipient, the payer gains clear visibility over the payment, and the recipient won’t incur any intermediary fees deducted from the final payment amount they receive.
Global payments in a click
IMTs also deliver considerable convenience to companies that, until now, would visit their bank branch to arrange a wire payment, to try to correctly complete the transaction instructions each time, and wait anxiously to confirm their transaction was completed.
“The pandemic has helped show everyone the value of performing more digital transactions. When a client makes an IMT through ScotiaConnect, Scotiabank’s digital banking platform for business, they can easily choose among drop-down menu options. So there is less guesswork to complete the transaction and more confidence that their payee will smoothly receive the full amount.”
Clients also gain confidence that, by dealing with a major Canadian bank, they are complying with all cross-border anti-money laundering regulations and reducing their exposure to fraud or other payment risks.
As a result of these benefits, client demand has been significant since Scotiabank began piloting the IMT service earlier this year. Among them, one business is pleased they no longer must deal with multiple banks, and transfers between different systems, to complete digital US dollar payments. Now, they can send the funds directly from their Scotiabank Canadian dollar account, with Scotiabank facilitating their treasury operation and reconciliation.
Business customers will continue to have the option of selecting other payment types like Scotiabank wires when they want to self-track outbound payment status, for greater visibility of vendors and payment reconciliation, since Scotiabank was the first financial institution to provide online wire tracking in Canada
“With these different payment vehicles at our disposal, our small business advisors and commercial banking Relationship Managers can really listen to their client’s needs and suggest the best-fit solution, which is often a mix of various payment products. With so much innovation coming to the global payment systems, we are moving as quickly as the technology is changing to provide increased choice in their payment options depending on their individual needs and global aspirations.”
1 Payments can be sent to: USA, The Philippines, India, United Kingdom, Jamaica, Dominican Republic, China, Mexico, Australia, Greece, France, Germany, Italy, Portugal, Ireland, Spain, Netherlands, Cyprus, Belgium, Austria.
2 Except for payments sent to China and the Philippines. Beneficiary bank deductions are processing fees taken from the value of the payment by any of the banks in the payment chain. Fees subject to change.