Based on hidden costs, Wise claims that HSBC is the costliest bank

In a preview of the UK Hidden Fees Report for January, Kriso Käärmann, the CEO of Wise, noted that HSBC and NatWest were the two most costly and inaccessible banks for foreign currency transactions.

Following HSBC's announcement of Zing as a possible competition for Wise foreign exchange, Käärmann revealed the findings on X.

Data from a website that democratises foreign money transfers, co-founded by Käärmann and his partner Wise, shows that changing £1,000 into euros through HSBC entails a 3.7% markup that is "not communicated as a cost to the customer."

Käärmann claims that although HSBC advertises a £0.00 cost, these additional costs are baked into the HSBC conversion rate that is displayed to the consumer.

It is unknown what HSBC's new pricing structure on the Zing app looks like because it was not yet online when this article was written.

Because of its creative use of domestic currency pools, Wise charges as low as 43 basis points per foreign exchange transaction, making cross-border transfers affordable and simple.

It claims that HSBC will find it difficult to match these costs.

(Sources: investing.com, proactiveinvestors.co.uk)