The Journey of £100: How Money Moves Across Borders

From a pound in a UK bank account to money thousands of miles away, every international transfer has a journey. But how does that journey actually take place?  

Imagine you’re in the UK and want to send £100 to someone overseas. Maybe a child, studying abroad. Maybe a small contribution to a mortgage, a small gift for a cousin, or just a helping hand. At first glance, it should be simple. £100 leaves one account, and the equivalent in local currency arrives in another. But it’s not that simple. That one transaction is made up of a complex network of financial systems, compliance checks, and foreign currency conversions, that mean your simple international transfer might take days before it finally reaches its destination. This guide explores exactly how £100 moves internationally, and how iFAST Global Bank makes that journey easier. 

Step 1: The beginning of the journey 

The journey starts with £100 sitting in a UK bank account. But soon it won’t be £100 anymore. International transactions almost always mean sending one currency and receiving another, so that £100 will have to be converted to the recipient’s local currency, and depending on what institution you use to send your money, the exchange rate applied can make a meaningful difference to the amount ultimately received, especially with larger transfers. For illustration, let’s say that £100 converts into 10,000 units of the recipient’s currency at the mid-market rate. Institutions will always offer a slightly lower rate than the mid-market rate in order to retain a small amount of profit. But some institutions will shave off a lot more than others. One option may offer 9,800 units of currency. Another may offer 9,620. Another may offer 9,900 units, but also charge an additional transfer fee, maybe £2-3, on top. The question you ask when sending money internationally shouldn’t be “How much am I sending?” but instead “How much is sending this money costing me, and how much will arrive to the final destination?” 

Step 2: Crossing borders 

Traditional international payments tend to pass through more than one bank. 

While the transfer is seemingly simple, with a sender and receiver bank, that isn’t always the case. Banks may not have direct links with each other, so instead they use processing banks that act as intermediaries to send the money, similar to a relay race. Each additional bank in the chain introduces potential processing delays, issues, and additional costs. Harkening back to our previous example of £100 converting into 10,000 units of currency, by the time that 10,000 units reaches its destination, the FX rate and intermediary bank fees will change the picture substantially, and that 10,000 will look more like 8-9,000 instead. 

Step 3: The pickup 

Now imagine that the international transfer has reached its destination. Due to all the intermediary banks having to process the transfer, it’s taken several days for the transfer to reach its destination, and all the exchange rates and intermediary fees have taken bites out of what was originally £100. Now, another bite is about to be taken out. Many banks will charge a fee simply for receiving an international transfer, ensuring that one last slice is taken before what’s left of the cake is delivered. 10,000 units dropped down and down before you might only be left with 8-9,000. 

The better option 

In a so-called “Normal” international transfer, the process takes days, the rates are bad, and when the money arrives, a large chunk of it is gone. But just because it’s “Normal” doesn’t mean that’s the only way to make international transfers. 

With iFAST Global Bank, customers can send cross-currency international transfers free of charge using EzRemit, which supports over 160 countries and over 30 different currencies. EzRemit is also faster than conventional methods, with most transfers arriving within minutes instead of days, with a competitive market rate that updates every minute, ensuring that customers always have access to transparent and fair pricing, so they know exactly what comes out at the other end. 

Make moving money more EZ 

Money is becoming increasingly global, with the masses no longer insulated by lack of access to worldwide systems. In the modern day, everyone interacts internationally. Someone may work in one country and support a family living in another. Students study overseas, sometimes whole continents away from home. Families might own assets that stretch across multiple borders. Transferring money across countries is no longer a once-in-a-while process; for some, it’s a constant event. 

As these international connections grow, the ability to move money efficiently becomes increasingly vital. 

At iFAST Global Bank, that efficiency is already a part of the customer experience. 

So the next time you send money, remember that it’s more than just a number changing accounts. 

It’s a journey.  

The path that your money takes, matters. Give it the EZ one. 

Same currency international transfers will incur fees. Refer to our Fees and Charges (Link) for up to date figures.