The Hidden Mystery Behind International Money Transfers
The market of the remittance services made simple
International remittance market plays an important role in the world economy. The most influential world organizations, such as the United Nations and the World Bank recognize a cost reduction of the remittance services as one of the most challenging tasks for the world development process. Strategic planners worldwide insist that especially the remittance system to underserved countries has to be improved dramatically.
Even though there is a slight drop from 2016 current fees for international money transfers are still exorbitant. Fee cuts a significant part of the transfer that otherwise could be used by the receiving families for their everyday needs. In order to avoid substantial financial losses both for individual families and for the entire states, the cost of the money transfers has to be lowered at least to 4%.
Naturally, the question arises: "What is preventing the main remittance market players from doing so?" To find an exact answer to this question, we must draw a clear picture of the actors who traditionally provide international money transfer services in the market:
Banks. Bank's international transfer services considered reliable though slow. Money sent via banks never has been lost but can be delayed. Customers find it cumbersome to track their delayed funds. Usually, banks have a good network in most sending countries, however their services less accessible on the receiver side. Strict banking hours make them very inconvenient as well. Generally, being highly regulated, putting strict requirements for both sender and receiver, and paying the administrative costs associated with the regulations, banks drive up the cost, providing the highest fees for small transactions.
Money Transfer Operators. The key operators, including Western Union, RIA, and MoneyGram, operate the biggest volume of the international money transfers on a significant cost level. They serve the demand for security and reliability. However, speed, low cost, and convenience seem to be left aside, from their attention. Due to that, the demand for new providers is steadily growing.
WEB based money transfer services. WEB based providers usually offer cheaper solutions and higher speed of transactions, than traditional operators. They also have no restrictions due to opening hours; most functions are available 24X7. However, they imply a certain level of digital literacy and web access and should include enhanced security measures to protect customers' personal and financial information.
As a financial supermarket, Sirocco provides consumers from developing countries with secure, fast, and easy tools to send hard-earned money to their families. We develop products and services specifically catering to remittance senders and recipients: our fees are lower than 4 percent, all transactions are instant, and a reach out in rural arias is wider than the most key operator's. We offer an Omni-channel platform of currency exchange and international money transfers to both individual and corporate users. The basis for all our services is a digital wallet, an online solution that is free to install and convenient to use. Digital wallet allows our customers to send money to the most rural arias in developing countries, at low cost, and with no risks.
We welcome all the members of African Diaspora as our clients!