Globalization is a key driving factor for money transfer companies nowadays. Remittances are helping to minimize the economic gap between developed and developing world, that needs to be paced with the inclusion of strong financial reforms in the developing countries to boost up growth back home. Apart from that there is a need to expand digital finance in receiving countries to create major impact of remittances in country’s development. With the increasing awareness about the technology and fast pace communication channels i.e. mobile phones this seems more viable for developing countries in current era to opt digital finance reforms.
Simultaneously in sending countries, the focus on transparent money transfer service to reduce the cheating of system by deceitful minority and in order to control money laundering and combating against terrorism financing, three major impacts have been observed on remittance market back in 2014. Firstly, Low cost money transfer service has been stopped by banks. Secondly, MTO’s (Money Transfer Operator’s) accounts have been closed by major banks as a precautionary measure to secure their system and scrutinizing their clients and products more keenly to mitigate the risk to their reputation against the small amount of revenue they are securing from these MTO’s. Lastly, small MTO’s have been closed because they can’t operate without bank accounts.
While this scenario created hassle for the MTO’s, it also created opportunities for them. In short run it required money transfer companies to focus on AML/CTF (Anti Money laundering and Combating against Terrorism Financing) regulations if they want to stay in business. While in long run, remitters are bound to opt legal remittance channels that are secure and convenient. And with the ever emerging technologies people are switching to online money transfer options rather than conventional, because these are more expedient and protected with multi-level authentication. These digital options to send money online will also help to increase transparency of system, Financial inclusion and availability of credit.
Therefore, the options to send money globally, needs to be secure and digitalized. Hence it can be summarized that the future belongs to secure remittance services with the inclusion of digital channels in the long run.
To strive in long run, ACE Money Transfer is one of the remittance player whose prime focus is on data protection regulation and transparency of system along with providing easiest conventional and Online money transfer options to stand amongst best money transfer companies.