Sending money internationally has always been a completely different animal than sending domestic.
to a relative or business associate in any country ranging from Nicaragua to France to Japan is simply more complex due to higher wire transfer fees, the fact that the U.S dollars have to be exchanged into the currency of the destination country, and so on.
This is exactly why we have an entire industry that deals with handling money transfers from country to country (called the remittance industry), and just like any industry, it is experiencing trends and changes as we go deeper into the 21st Century.
Here are the top recent trends in the international money transfer industry today:
Regulation of the remittance industry has only increased after the financial crisis that shook the globe from 2007 to 2008. Banks have been forced to meet these new regulations and are also constantly having to de-risk in order to make their regulators satisfied.
Some countries and markets are also more regulated than others, such as Great Britain, where the process of transferring international funds has become more strict due to previous problems.
Consumers Are Going Digital
There are indications that the days of people physically going to the building of a money transfer service could one-day sunset. The reason for this is because there are fewer people actually going to such locations; everyone is becoming far more comfortable with utilizing technology to sign up and make transfers.
It’s also whyhas been for money transfer services to create easy-to-use apps that allow people to send money directly from their phone. While older generations have not made a dramatic switch to predominantly using apps to make their transfers, millennials and post-millennials most certainly are.
Blockchain Technology Is Becoming More Popular.
Blockchain is a technology that, simply put, has the power to completely revamp the money transfer industry as a whole as we know.
Yes, most exchanges, banks, and other financial institutions are still largely skeptical of the technology and have expressed great reluctance to give up traditional currency exchange for digital currency.
At the same time, however, newer remittance startups have been very receptive to digital currencies and blockchain and have utilized it to provide more inexpensive and faster financial services.
Blockchain still has a long way to go before it becomes fully accepted and mass adopted, but there’s no question that it’s working their way there. If smaller remittance startups are using the technology to provide cheaper and faster service, they will only naturally attract a large segment of customers who may be disenfranchised with the current system, and the larger financial institutions will eventually have to adapt.
Trends In The Remittance Industry
These are the top trendsin the remittance industry, and it’s very likely that these trends will continue to develop in the near future.