How FinTech is helping to finance the remittance market

As cross-border migration has come to characterise the flexible employment habits of the twenty-first century, the remittance market has grown significantly. The FinTech industry benefiting from this growth and change.


Companies borne from the FinTech industry, particularly those focused on transferring money, have been extremely helpful in helping migrants make effective financial transfers.
 
Remittances aren’t just helping migrants, but are also helping third world countries to grow. In 2014 remittances reached a staggering total of $435billion, an increase of 5% over 2013. And the growth rate was substantially faster than the 3.4% recorded in the previous year. Asia and South America are said have largely driven the remittance industry, with global remittances reaching an astonishing $608million.
 
The global average cost of sending remittances continued to fall, as demonstrated by a drop to 7.9% of the total value sent in the third quarter of 2014 (1% lower than the previous year). However, the cost of sending money to Africa remained obdurately high as it continued to exceed 11%.

The decrease in the global average cost of sending remittances has been enabled largely by FinTech companies. Those such as TransferGo, offer a fast and cost effective way of sending money across borders. Whilst banks are known to charge substantially higher fees for transfers that can take up to several days, TransferGo can guarantee next business day delivery, and have a fixed fee of 99p.
 
With a number of individuals, many migrants, and even businesses taking advantage of FinTech companies, remittances to the developing world are expected to reach $540billion this year. In addition to this, global remittances are estimated to reach an astronomical record of $707billion.
 
 
One individual who has been more than satisfied with TransferGo’s services is Micha? Czuchryta, a bar manager of West Ealing. Micha? moved to the UK 10 years ago with the aim of making more money. Now he is doing so it is important for him to be able to send money home to Poland so he can help his parents and make investments. He describes the company’s entire service as transparent, praising the ease of use, cheap rates and fees, and quickly completed transfers.
 
Ramone Plaude is a young student who moved to Denmark in order to get her bachelors for Value Chain Management at Horsens University. The 21-year-old sends money home when she is due to visit, as well as to pay bills and occasionally help her parents. Like many students, Ramone is desperate to save where she can, and finds that TransferGo is a perfect way to do so. She is convinced that it has saved her a lot of money, as their rates can be as much as 90% less than those charge by banks and other transfer methods.
 
Daniel Lajuks is a 24-year-old CNC machinist who works in Horley, Surrey. He moved to the UK in February last year for economic reasons. He sends money home to Latvia to pay back his loans and settle his debts, and if he can, support his family. Daniel discovered TransferGo after being charged a £20 transfer fee by a bank, and went on the search for another international transfer service. He claims there are a number of things he likes about their service, not least the user friendly experience, and its quick and inexpensive transfers.
 

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