The UK has always held a unique position in offering the best education, employment opportunities, and best living conditions for both the natives and the foreigners. It all comes together and creates immense appeal for the global population, whose significant chunk lacks these facilities. This pushes people out of their home countries, primarily underdeveloped like Bangladesh, etc., ending up in the UK as expatriates.
On finding jobs and work, these expatriates send money to their loved ones through some of the world’s top online money transfer companies, ACE Money Transfer. The UK and all the countries that offer the same facilities attract expatriates, making it essential to look at the global remittance industry briefly as expatriates essentially send back remittances to their home countries.
In 2019, the total global remittances were $719bn, a World Bank report revealed. But, the same report says the volume of remittances shrunk in 2020 by -2.4% to around $702bn as the Corona Pandemic struck.
Out of this total, around $540bn flew into the low and middle-income countries as there was a drop by -1.6% from $548bn.
Many countries, including Mexico, Pakistan, Bangladesh, etc., saw an increase in the volume of the inbound remittances during the same period.
Now, let’s see the factors making the UK the world’s top remittance corridor.
A study conducted in 2020 revealed that about 36% of the people coming to the UK visited the country for acquiring the best education as the UK is home to some of the world’s top educational institutions. And most the Western countries have the option for the students to do part-time jobs alongside their studies. The students do this to support their education and send back money if there is a margin.
The students who go to the UK for studies are, in most cases, financed by their families and prefer a credit card Money transfer to bank accounts of students. This factor contributes to making the UK world’s best remittance corridor as there is an inbound and outbound flow of remittances in the UK.
Another study revealed that the people coming to the UK for work accounted for 32% of the total migrants living in the UK.
Since the UK has a climate that many third-world countries do not have. This is another big reason for the people to migrate to the UK and, once they arrive there, they cannot sit idle. They have to find work, and once they do, they send back their remittances to their home countries.
Now, let’s look briefly at the UK’s remittance inbound and outbound flow statistically.
A World Bank study reveals that the flow of the UK remittances outside stood at a whooping GBP 7.7bn in 2018. There is a likelihood that this figure is a bit lower as it does not include the unofficial and informal remittance transfers.
2010 = GBP 6.87bn;
2011 = GBP 6.62bn;
2012 = GBP 6.62bn;
2013 = GBP 6.86bn;
2014 = GBP 7.05bn;
2015 = GBP 7.00bn;
2016 = GBP 7.47bn;
2017 = GBP 7.35bn; and
2018 = GBP 7.7bn
It must be noted that the volume of outbound remittances (a money transfer to other countries) from the UK has hit double-digits in recent years.
The volume of the inbound remittances in the UK was more than $4.21bn in 2019, and it was at its highest in 2007 at around $6.56bn.
2000 = $5,074.37 million;
2001 = $4,955.6 million;
2002 = $5,235.07 million;
2003 = $5,688.56 million;
2004 = $5,938.3 million;
2005 = $6,045.17 million;
2006 = $6,105.71 million;
2007 = $6,556.34 million;
2008 = $5,995.1 million;
2009 = $5,242.98 million;
2010 = $4,951.4 million;
2011 = $5,099 million;
2012 = $4,944.72 million;
2013 = $4,804.5 million;
2014 = $4,935.59 million;
2015 = $5,003.39 million;
2016 = $4,582.28 million;
2017 = $4,308.89 million;
2018 = $4,389.79 million; and
2019 = $4,214.81 million.
This is the year-wise division of the UK’s inbound and outbound remittance flow.
Here’s is a list of the UK’s top 5 remittance providers.
ACE Money Transfer grabs the top slot owing to its top-notch services to the expatriates for remitting money back home. It is followed by Wise (known formerly as TransferWise), OFX, XOOM and Western Union. Many other companies are operating in the UK in the same industry, but these 5 are the most sought-after ones.
Remitting your money from a foreign country is not without perils as it is a tricky business and involves risks. But, if you choose your remittance service provider wisely, sending money to Pakistan or another country worldwide will be an activity-filled with fun and convenience. And that depends if you happen to select an internationally acclaimed company such as ACE Money Transfer.