Daily Fintech Conversations

This little ATM receipt could change the $5 trillion (Daily) FX market

Your Real Fintech Reporter took this pic two days ago - citizen journalism in action.

This is a real receipt, from an ATM in London. I live in Switzerland so it was converting from CHF to GBP.

I always knew I was getting hosed in these transactions. As a geeky fintechie I actually knew almost exactly how much I was getting hosed. A few years ago I did the same transaction and took a pic of the screen, noted the time and looked up the FX interbank rate at that precise time.

About 99.999% of the world won’t do that, a fact that banks have use to mint money in the FX market.

Now that same data is printed for me in simple language - see that 8% markup printed in the receipt. The no fees pitch is marketing BS, the money is in the markup.

I met somebody after this ATM visit who l confirmed what I suspected - the only reason banks display this damning data is because regulators demand it.

Yep, those bad old regulators maybe doing JoeQPublic and Upstarts a big favor. If consumers see that 8% markup a few times, then the ads for Revolut, Transferwise etc will resonate.