The money transfer service aims to capitalise on a high immigrant population and demand for alternatives to traditional banks.
Azimo, the rapidly growing overseas money transfer service has launched in Canada. The move comes as the pandemic, rising immigration and dissatisfaction with traditional providers, have created a fertile environment for online providers.
Launched in 2012, Azimo has been growing rapidly. In 2019 it reached a major landmark for all thriving fintech start-ups and reached profitability. 2020 saw it grow by 50% amidst the background of the pandemic as people turned to online providers for all their financial needs.
Canada has seen rapid immigration in recent years. 20% of its population was born overseas, prompting rising demand for overseas transfers as migrant workers send money back to their home countries. However, this sector has been poorly served by bank-based incumbents. According to data from the World Bank, sending remittances costs an average of 6.5% of the total sent.
“The average cost of a remittance sent from Canada is around five per cent of the amount sent. That’s far too high and shows that the remittance market isn’t working for hard-working people,” said Azimo CEO Richard Ambrose.
Azimo represents a perfect fit for Canada. Among the 200 countries it covers are China and the Philippines, which account for 35% of all transfers sent from Canada. It also recently added instant transfers to its offering for Chinese customers making it as quick and easy to send money as to send an image.
Most importantly of all, like other online providers, it offers much lower fees and more competitive exchange rates than conventional banks. They claim that they can save customers 90% when compared to traditional banks. With the pandemic accelerating the adoption of digital financial services, Azimo hopes to capitalise on rapid growth in the Canadian market.
Tom Cropper has been writing for us since 2015. Tom is a financial journalist and his work has appeared in titles such as the Guardian, Euromoney and many others.