Do you ever think about the best way to send money to India? This article will walk you through how Financial Technologies (FinTechs) have made international money transfers easier to India.
Ghana is a Sub-Saharan African country suffering from rampant unemployment and acute levels of poverty. The Indian diaspora, spread across the world, has been helping their national economy through remittances they send back through different methods.
Traditionally people used banks to transfer funds to people living far away. These traditional methods, although they are still being used, are a costly affair requiring physical fatigue and a lot of time until the advent of newer methods which offered more benefits in a cost-effective and time-efficient manner.
These new methods created ease for money transfer to India and worldwide.
Before we take a look at the ease and convenience these new methods brought with them, let’s see a few remittance statistics.
Remittances are the main source to contribute to the GDP of Low and Middle-Income Countries (LMICs).
In 2018 alone, over 200 million expatriates spread across the world sent more than 689 billion USD as remittances to their home countries, out of which a whopping 529 billion USD went to the LMICs.
The interesting point is that the remittances form only 15% of a household’s total earnings, but this small percentage makes up for around 60% of the total expenses the same household incurs.
Now let’s see how FinTechs have made international money transfers easy.
Fast transfers:- Money can be transferred swiftly through FinTechs, which take a short time than banks which take a few days to transfer funds internationally. The express delivery method in FinTechs offers even shorter periods of time to send money to India online or anywhere worldwide.
The monopoly of banks:- FinTechs have brought an end to the monopoly of banks in transferring funds to other countries through costly and time-consuming methods.
Better exchange rates:- It became possible only with the advent of FinTechs that customers got access to better and competitive exchange rates for transferring funds. Earlier, banks and broker agents would offer the exchange rates based on their personal likes and dislikes rather than the current market rates since these two had monopolized the international remittance market.
Low cost:- FinTechs offer services in exchange for a low fee and low cost and have a few options the customers can use even free. Also, a few credible and reputable FinTechs-oriented companies such as ACE do not charge their customers for amendments and transaction cancellations, which reduces the overall cost.
Multiple options:- Through FinTechs, companies offer multiple options to send money and collect funds. Customers can either send money through their smartphones or computers or even can do it physically if they feel comfortable and convenient. All in all, FinTechs have made this process easy and convenient with multiple options on offer.
Payment modes:- FinTechs offer many modes of payment such as Google Pay, Apple Pay, Venom, Square Cash, iDEAL, ACH, SOFORT etc. Now customers do not have to think about the modes to send money; rather all they have to think about is whether to send funds or not and where if yes because all the options are available and well within customers’ reach.
Little or no transfer fee:- FinTechs offer money transfer services for no or a little amount of money as fee or service charges which is contrary to what the banks and broker agents do.
Big data:- FinTechs keep and use big data for establishing deep and strong relationships with customers and also to avoid frauds and guard against anomalies.
Tools for Hedging:- Hedging tools such as forward contracts and market orders were difficult to access in the past. But, with FinTechs, these tools are now available as well as easily accessible to customers. These Hedging tools help customers extract maximum benefits from fluctuating currency exchange rates. Also, there are a few companies, such as ACE Money Exchange, that allow customers to book a scheduled transaction.
Multicurrency option:- FinTechs offer multicurrency accounts in different currencies. The beneficiary does not have to worry about exchanging their currencies as they are enabled to receive funds in the local currencies.
Option for cash transfer:- Although not very many companies offer the option of cash pick up to their customers, even though FinTechs are well on their way to provide this option to customers as much and as quickly as possible.
Increased transparency:- FinTechs have paved the way for enhanced transparency in sending remittances and collecting funds. Customers are continuously updated in real-time with online money transfers to India through secured channels.
Conclusion:- We, now, have a better understanding of how FinTechs have helped transfer money to Ghana easily and conveniently. These points become more beneficial and rewarding when you do transactions with ACE Money Transfer, whose name has become synonymous with high-quality services and deep customer satisfaction.