The competition regulator wants major banks to subtract foreign exchange fees when customers use their FX calculators, a move that could encourage more people to transact through fintechs, which provide the same service for up to one-quarter of the cost.

Proposed changes to the Australian Competition and Consumer Commission’s “best practice guidance” on foreign exchange transactions could unlock $214 million in annual savings for those switching from a major bank to a lower cost operator, the regulator said.