In years past, transferring money to other nations was expensive. People sending the money were subject to high fees from just a handful of companies, each frequently offering inconsistent and unsatisfactory service. For many individuals sent money, these problems were compounded by the fact that these services were not geared toward people who spoke their language. As this industry is inherently international in its scope, it is difficult for all language groups to be served ideally, but this was much more of a problem 10 years ago than it is today. Money transfer is changing, and changing for the better. Innovators on different continents are finding ways to make the service better and faster for customers of all types. Here are some particular details about how this works.
1) Money Transfer Happens at All Levels of Finance. Whether you are an individual sending $200 to your aunt overseas, or a multinational corporation transferring billions to a foreign currency to seal a merger, you will have to avail yourself of the services of a money transfer company. In some cases banks fulfill this role, but increasingly when you move down the expense ladder, you’re seeing these jobs fulfilled by smaller companies who are able to do the same job faster and at better rates than can traditional lending institutions. Because hundreds of billions of dollars are sent every year by individuals to other individuals, in the form of remittances, this industry has had to become more affordable to people who don’t have a lot of money to pay or send.
2) Money Transfer Prices Benefit from Competition and Technological Development. As web and mobile technology has improved, so have prices of money transfers, especially for low-net-worth individuals. Companies like Baydonhill make it possible for all sorts of people and entities to send money at various value levels. And they do so by using the streamlining power of the web and mobile technologies of the past few years.
3) Money Transfer is Changing the World Economy. In the case of remittance sending alone, money transfer accounts for more than $404 billion dollars sent a year, and that’s just from immigrants sending income back to their home nation. In cases like these, these money transfers can account for more than half of a nation’s economy. Tajikistan is one such country, accounting remittance inflows for 52% of its GDP in 2013 (World Bank). There are many other nations who benefit wildly from monies transferred into their borders from without, like Nepal. India, China, and Mexico receive more remittance inflow than any other nations, but due to these nations’ large populations and economies, remittance income is just a drop in the bucket. Remittances continue to grow globally each year, some years exceeding 5% in growth.
As you can see, the Money Transfer industry is diverse and evolving. It is an intimate part of how the global economy operates, as well as how individuals and their families survive. The price tag seems to be going down for all, as demand continues to grow, and new technologies make the process easier for everyone.