The Association of Banking and Financial Transfer Institutions, known as FERG, announced that the authorized exchange companies operating in the United Arab Emirates have obtained the required licenses to implement an optional cost update.
The corporations will be able to increase the fees by a minimum of 15%, or AED 2.5, thanks to this legislation.
This is the first fee adjustment in the first five years due to changes in local and international regulations as well as cost increases that have happened since the last charge adjustment.
Changing the fees solely for branches
The price adjustment will only be applicable to branches due to the growing reliance on digital services and the completion of many tasks without reference to branches. In contrast, the costs associated with transfers conducted via the applications of money transfer and exchange companies would either not change or might even go down.
In order to make this crucial initiative possible, the Banking and Remittance Group played a major role in conducting in-depth market research and collaborating with regulatory authorities.
This authorization follows a careful examination of the expenses related to upholding the highest caliber of service and adhering to the guidelines established by regulatory bodies. The aim of the ruling was to ensure that exchange businesses would maintain their competitiveness despite pricing increases.
The average cost of sending money
It is expected that the average cost of money transfers would remain at roughly 3.5%, which is much less than the average cost worldwide, despite a small increase in fees.
The World Bank’s most recent studies indicate that the average cost of shipping $200 worldwide is 6.2%.
Remittance fees that have been changed are still part of the Sustainable Development Goals of the United Nations. By 2030, the remittance routes with prices higher than 5% are to be eliminated, according to these aims.
According to Mohammed Ali Al Ansari, Chairman of the Banking and Financial Transfer Institutions Group, “We commend the decision to allow exchange companies to adjust their fees on money transfers. This step is of great importance in enabling companies to adapt to changing factors in the sector. Additionally, the decision enables exchange companies to move forward in providing high-quality services, meet changing regulatory requirements, and adapt to operational costs that have been maintained without any increase in fees over the past five years.” A statement was made by Mohammed Ali Al Ansari.
The consortium of banking and financial transfer companies confirms through its members its dedication to providing added value and guaranteeing customer satisfaction.
The rationale behind changing fees
The purpose of this charge adjustment is to guarantee that fee adjustments correspond to the customer’s budget, so guaranteeing a cost-effective and safe converting experience.
