In the times that we live in, it's no surprise that people change locations for better financial conditions. Today's global marketplaces allow to be flexible in terms of working conditions. So, if local markets are in a state of crisis or harbour fewer opportunities, people tend to move and try better opportunities.
It's here that these people all need to do one thing: send money to their families back home. This reality has given an extensive rise to the money transfer industry all over the world.
There are hundreds of companies out there all focusing on money transfer. Why? For one simple reason? People send around 450 billion USD to developing countries per year!
Which countries are the leaders in receiving money through money transfer?
India, China and the Philippines are the top three countries. In terms of continents, Asia is the biggest recipient by far.
Who are traditionally the biggest players?
While the majority of the transactions is being handled by banks and industry giants, there are other companies breaking into the monopoly to offer more affordable and transparent transactions. WorldCom Finace is one of these companies which broke into the arena of money remittances in 2010.
WorldCom Finance offers the same services that industry leaders do, but does so quicker and at more affordable prices. Why not save up the fees you would normally pay at a bank and enjoy the luxury of spending them for your own needs? Give it a second thought!
Security concerns, fraud and other issues
Money transfer operators have long been used by fraudsters, to the extent that Western Union detail some of the most common scams on their website. The fact that you don’t need a bank account, and only minimal identification, make traditional remittance companies attractive to unscrupulous characters who are looking to part the naive from their cash.
Sending money to developing countries comes with its own set of challenges – many people have no access to a bank account, let alone the internet or even a phone line.
As mentioned above, the backlash against remittance fees has well and truly started, with many calling for stricter regulation on the fees charged. In November 2014, the Labour MP Tessa Jowell started a campaign to cap excessive charges. Whether successful or not, this publicity has put high street money transfer operators in the spotlight.
For more information, read our article which looks in more details at the various money transfer options, and the pros and cons of each.
What does the future look like?
As more remittance recipients have access to financial services such as basic bank accounts, and internet use increases, there is no doubt that fast and cheaper online transfer will become more popular. It will be interesting to see how the high street money transfer operators step up to this challenge – but one thing is for sure: Companies like TransferWise are giving customers greater choice, safety and control, which can only be a good thing for those sending and receiving money internationally.
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