NZ, UK and US the top destinations
December brought an increase in international cash transfers as Australians sent money overseas through the holiday season, new data from NAB has shown.
According to NAB, international transfers made in December were 20% higher than the monthly average and 12% above the previous year’s figures.
NAB transaction banking and enterprise payments executive Shane Conway (pictured above) said the surge in international transaction volumes reflected “Australia’s deep connections to the rest of the world”.
“Nearly one-third of Australia’s population is born overseas so it’s no surprise the main reason our customers send money overseas is to support family members,” Conway said. “Through December we regularly see a lift in the number of transactions as the giving spirit is alive and well.”
He said the trend was even more apparent in 2022 at a time when cost of living pressures “are more pressing globally than they have been in many years”.
“New Zealand and the United Kingdom were clearly the top destinations in December, which makes sense given both high migrant populations and the significance of Christmas in these two regions,” Conway said.
NAB data in the report also identified the US dollar as the most popular currency for these transactions, which the bank said was indicative of its status as “the world’s currency.”
The December surge comes after NAB announced in November that would no longer charged a fee for overseas transfers in a foreign currency when using NAB internet banking for the NAB app.
The bank also made improvements to its foreign exchange rates as it sought ways to help customers’ funds go further in foreign currency.
“Almost half of the international transfers made by our customers are made to support family overseas, and we want to help them move their money in other currencies simply and without extra cost,” Conway said. “We responded to customer feedback by removing the fees and it’s great to see activity pick up.”
A previous report from NAB, surveying more than 2,000 Australians between August and September last year found that over a third of Australians are dealing with financial hardship amid high inflation and rising interest rates.
