Breinrock

Ask Iva!

IVA BOGICEVIC

Breinrock

Why paying less costs you more!

Dear Iva,

Being a CFO I have to make sure that my brand has the best possible banking solution for my C2B and B2B strategy. In your opinion should I consider transaction costs as the key detail when looking to use an EMI?

Richard - London.

Dear Richard,

It’s a great question as you have to balance value and security when looking at a solution. Ideally it is probably best that you have several banking solutions to hedge your risk in this respect, so if you have problems with a primary solution you have a back up and your business does not stop.

Of course nobody likes these types of banking challenges, however if you are operating an offshore brand, it is good to have several options based upon the assumption that at some point you will need and plan B and C.

In answer to your question regarding cost over quality, it is a very interesting one as it covers several points. When you speak to the representative of the banking institution, find out what you are paying for.

This may seem incredibly basic, however not all EMI’s are created equal, so ask how many banks are in their network, what is their rating, how many local routes do you have access to. By asking this you can get a good idea of the quality of the people you are dealing with. If they just have a relationship with only two banks from non- AAA rated jurisdictions then maybe you want to renegotiate the fee’s from the off. At Breinrock we are incredibly proud of not offering rock bottom pricing, as we feel as we offer a high quality service. Having 12 AAA rated banks in our network, along with over 50 local routes and our own technology. These things all come with costs, of offering you a high quality service as we have to pay our end to manage the relationships with the banks etc.

I think any owner is more than happy to accept higher fees, if you explain to them what they recieve for the service, if they can see value and the additional security of a 12 AAA banking network that their funds are held in, then the cost is completely justified. As they say, pay cheap...pay twice!

Kind regards,

Iva Bogicevic

You can find out more about Breinrocks 12 AAA rated bank network by taking a look at their site breinrock.com