According to estimates by World Bank, remittance flows to middle-income countries topped $529 billion in 2018. Global remittances to these locations and high-income countries reached $689 billion in 2018. With stronger economic growth, more people look to find ways to send money back home to their friends and family.
To many, home is many miles away, across the ocean, which means that they need mediums that enable international transfers. When they make a transfer abroad, they will usually experience two costs: upfront fee and foreign exchange margin. They can reduce the costs of their transfers by taking into consideration the different types of mediums available for international money transfer.
There are many options to choose from to send money back home to friends and family. There are different types of money transfer specialists that exist today, using brick and mortar access points as well as digital access points.
Money Transfer Services
Online money transfer services are considered to be significantly cheaper and faster than more traditional methods such as banks. Online money transfer services, in some cases, can be more transparent than other methods of transferring money home. In many cases, such services may also prove to be easier to use than other methods of money transfer. The steps required to use digital money transfer services can take a lot less time than more traditional methods of transferring money.
The rising competition in the money remittance space means that you don’t have to be bogged down with limited options of service providers to choose from. A wide range of service providers exist with their own unique deals and propositions for customer experience.
The method used to send money back home to friends and families is dependent on the unique needs of an individual. The speed of transfer, security of transfer, and customer experience are among some of the significant factors that must be considered when deciding on the best methods to send money back home.
Transferring Money Home With a Bank
An international currency draft may be ordered for a fee. The recipient of the money may incur fees for cashing the cheque. A foreign draft may be used to create a credit account in another country which is used to make the money transfer. The individual who sends the money may repay the bank using the money denominated in their home currency.
Banks can be used to send money abroad. A fee will usually be incurred for international transfers. The fee may be reduced if the recipient of the money transfer has an account in the same bank as the sender. Some banks allow for free transfer of funds, using email addresses. The fees charged for international transfers depends on a bank and its policies.
The following information is required to make an international money transfer through a bank:
- International Bank Account Number (IBAN)
- Full Name
- Bank Account Details
Wire transfers may be used to with specialist money transfer agents. Wire transfers require cash to be provided at the registered location. A recipient must be provided with a reference number which they must use to collect the cash in the country they are located in.