Banks near zero hour on $124-trn flows as fintechs cut their share, margins

Traditional banks must raise their game to keep customers from fleeing to the likes of TransferWise and Revolut Ltd

What's the first thing that comes to mind when someone mentions "remittance"? Expatriates sending money home. Second? Lousy exchange rates.

While exorbitant currency spreads and hefty bank charges are the norm for payments that cross national borders, the impression that they mostly affect individuals is wrong. Annual people-to-people transactions amount to $400 billion a year. People-to-business payments – like sending fees to schools overseas – come to another $1.5 trillion. Those are substantial figures, but they pale before the $124 trillion of business-to-business transfers, according to McKinsey & Co. 

A large multinational may be able to squeeze a saving from its corporate