May 17, 2016
Nonbank market players in the financial services industry are disrupting almost every segment leaving fewer chances to the major players. The cross-border money transfer industry is one of those segments where traditional institutions have suffered significantly. In the UK, for example, the top 20 nonbank money transfer providers account for over £40 billion of foreign exchange per year, saving customers over £900 million annually.
FinTech players like TransferWise and World First have increased the pressure on banks in terms of fees for the transfer service. Nonbank providers charge an average of 0.9% on £10,000, which is four times less than the average for banks.
However, the prosperity of remittance companies led to the growth of the complexity of the ecosystem. A wide choice of transmitters demands the necessity to spend time in choosing the best. Luckily, along with expanding ecosystem, there are also companies that allow to easily choose the most suitable company to send funds on the most optimal conditions.
Let’s look at some platforms making the choice easier for customers.
Remittance Prices Worldwide by the World Bank provides data on the cost of sending and receiving small amounts of money from one country to another. Remittance Prices Worldwide covers 300 "country corridors". The corridors include 35 major remittance sending countries and 99 receiving countries. Remittance Prices Worldwide is managed by the World Bank Payment Systems Development Group, which is part of the Finance and Markets Global Practice.
TawiPay is a search engine for international money transfers, helping people find the cheapest, fastest, most convenient and trustworthy ways to send their money around the world. TawiPay helps users to find and compare all the options to send money across the world. Depending on the needs, the platform ranks money transfer services based on their cost, speed or trustworthiness. TawiPay lists 467 money transfer operators across 168 countries, and the numbers are increasing.
SaveOnSend.com is an online platform that helps people in the US make an informed choice when sending money to China, India, Mexico and the Philippines. The platform allows users to learn transparent costs and pick the best provider, check savings on previous transfers, get notifications on price fluctuations and new low-cost providers. It also offers an opportunity to earn points and status for participation.
FXcompared.com is aimed to help users make the best decision about their international money transfer needs. To date, the users have transferred over US$1.3 billion via the providers listed on the platform. The company takes a detailed, research-led approach to ensure the best information that will allow users to compare money transfer providers internationally.
RemitRight is a comparison platform for international money transfers. It enables users to easily research and compare online money transfer operators. Their website and mobile platform will enable people to easily research and compare accurate and relevant information from online money transfer service websites in one comprehensive, fast and intuitive display.