Over the last decade, the global remittance market has undergone a significant transformation, driven by rapid technological advancements and shifting global financial landscapes. The changes have led to a new era of global remittance circumstances, unlocking new opportunities for consumers and industry players alike.
This blog post aims to examine the changing market trends of international money transfers over the past decade.
From Conventional to Digital Solutions
The emergence of digital money transfer platforms has caused a significant disruption in the international money transfer industry. Over the past decade, the “traditional” ways of sending and receiving money through banks, agents, or post services became less preferred than digital solutions.
Fintech solutions such as digital wallets and peer-to-peer (P2P) platforms have emerged as major players in the industry. As a result, new players have disrupted the conventional business models of established money transfer operators (MTOs), increasing pressure on traditional operators to transform their services quickly or risk becoming obsolete.
Lower Charges and More Competitive Exchange Rates
Another development over the past decade has been the shift in the competition landscape, leading to a reduction in transfer charges and improving exchange rates, leading to more affordable transaction costs.
Consumers are now seeking reduced fees and better exchange rates for international money transfers, which has forced major players in the industry to reduce their fees and improve their offers. According to the World Bank, the global average cost for sending $200 dropped from $15.16 in Q1 of 2010 to $6.84 in Q3 of 2021.
Enhanced Security and Enhanced Customer Experience
Over the past decade, the international money transfer industry has experienced an increased focus on security and customer service- new customer-focused features and capabilities, with increasing transparency, real-time tracking mechanisms, and general customer service enhancements, such as 24/7 customer support.
Fraud prevention measures such as strict KYC (Know Your Customer) regulations have been introduced to improve customer protection and conform to global financial regulations. The emergence of security-focused fintech solutions has enabled international money transfer providers to enhance their customer experience by ensuring the safety and reliability of all transactions.
The Role of Regulation
The industry is evolving rapidly, and financial regulation is critical in integrating digital platforms and developing a stable and responsible environment that prioritizes consumer protection.
In order to keep operators affordable and reliable, regulators need to strike a balance between flexibility offered by new entrants and tough oversight of established players.
Regulators have put more pressure on industry players to be KYC compliant, which has increased the need for collaboration with local and international financial institutions. This initiative has enabled international money transfer providers to guarantee the security and protection of their client’s funds and ensured that they comply with global financial regulations.
Conclusion
The past decade has seen a significant evolution in the international money transfer industry, with digital players transforming the field and opening up opportunities for consumers and businesses alike.
ATLMoney has played a significant role in this transformation, introducing digital solutions, improving exchange rates, increasing transparency and enhancing customer experiences.
With ATLMoney is a leading international money transfer platform, customers can enjoy a host of benefits, including highly competitive exchange rates, reliable service, and exceptional support. In summary, we are proud of our customer-focused approach and our role in revolutionizing the international money transfer industry.