Money transfer companies are the companies which provide you with a way through which you can send and receive money. Money transfer companies are relatively new in the market. These companies are today making so many profits by charging per transaction and the amount of money they service. Now, the question arises that if these companies are financial institutions or not. Under the umbrella of financial institutions, organizations like central banks, internet banking, mortgages, insurance companies, work. These all institutions deal with money in one way or another. In that sense, we can say YES money transfer companies are financial institutions. But if we look at various other institutions dealing with finances, let’s take an example of a bank, a bank deals with money as well as the matters of loans, investment, saving, and transactions. The task list of institutions, other than money transfer companies, which are called financial institutions, goes a bit long. The reason makes it not a financial institution but a part of the financial aspects of the economy.
Money transfer companies have a great role in the economy. In financial terms, these companies are the ways through which families and other industrial organizations can do transactions without any hassle.