The world of money transfers is changing fast. Innovations in FinTech and mobile banking have dramatically altered the process. Previously, sending money between countries was expensive and often accompanied by hidden fees. While traditional banks still cling to an outdated business model, newcomers force them to adapt and offer competitive rates to customers worldwide. Cash transfer programs have been implemented across many countries, but they must be tailored to the recipient country’s institutional settings and national politics. In Indonesia, for example, President Sukarno used a cash transfer program to mobilize political support. However, the program developed by the Ministry of Development Planning was criticized as a populist scheme and a patronage practice.
Evolution of Money Transfer
The earliest methods of money transfer were telegrams and mail orders. In the 21st century, however, banks needed a way to transfer money from one location to another as communities grew. The Ria Money Transfer, one of the largest money transfer companies in the world, with over 500,000 locations in over 160 countries, was established and evolved into an app-based money transfer service. Peer-to-peer money transfer applications can give the unbanked access to financial services.
According to a recent study by Statista, nearly one billion people worldwide do not have access to a bank account. With these apps, people in any country can send money back to their home country or pay their bills. All they need is access to the Internet. Many companies are experimenting with new ways to facilitate the money transfer process. Facebook’s “Libra” is one such example. In the future, this technology could replace banking as we know it. It is unclear whether or not it works out that way, but it is a promising possibility.
Money Transfer
Today, you can send money internationally much faster and cheaper than you would ten years ago. While this new method of funds sending is convenient, it also comes with several risks. In recent years, sophisticated fraud incidents have made sending money overseas riskier and more complicated. For these reasons, more security is needed. You can choose between bank wire transfers and online money transfer services when sending money.
Bank wire transfers are slower and limited to other banks, but these limitations do not constrain online money transfer services. Online money transfer services are more flexible and can handle smaller transfers faster. The downside of bank wire transfers is the exchange rate, which isn’t always as competitive as with specialist providers. These are some elaborated factors on which is better, bank or online money transfer?
Better Exchange Rate
Currency exchange rates can be a significant factor in determining how much you spend when sending money. The better exchange rate you receive means a better value for your money, but that comes at a cost. In addition, the transaction fee will be higher for some providers. Some providers waive their fees if you send a large sum, while others charge a fee for every transaction. Another critical factor is whether the provider supports specific currencies or countries.
Safety
Bank transfers are still one of the safest ways to transfer money overseas, but this method is not risk-free. Bank transfers often incur fees and higher exchange rates than other transfer methods. Online funds shift service providers are a safer, faster, and cheaper way to send funds overseas. A few of these companies also offer customer service focused on their customers’ needs.
Convenience
In addition to making money transfers more accessible, these mobile apps make international payments easy and convenient. They can be used by almost everyone, saving the recipient from dealing with the hassle of visiting a bank or waiting in line. In today’s world, mobile technology has changed virtually every aspect of human life.
Security, The main issue with digital money transfers is security. Many people still trust banks because they are ‘too big to fail.’ Nevertheless, digital remittance services are safer and more convenient than bank transfers. Ultimately, the goal is to keep the economy free from fraud and ensure people have more access to financial services.
There are several different security measures that money transfer service providers and banks use to protect their clients. One of these is SSL encryption. SSL encryption helps protect sensitive information that is transmitted over the Internet. The money transfer service provider will send a copy of its SSL certificate to the browser, which enables it to establish a secure end-to-end connection. Another important security measure is two-factor authentication. This authentication protocol uses a password and biometric factor to verify the user’s identity.