June 2018 in Singapore What do end-users expect from a money transfer service?
The way to send money to and from emerging markets is continuously evolving: becoming digitalised and increasingly sculpted by consumer demand. As a money transfer service provider, it is essential to understand the user journey and ensure a seamless experience for your customers.
Here are five areas of consideration for end-users, many of whom are migrant workers, when sending money home to emerging markets.
In today’s technological era, people are growing accustomed to speed. Customers are looking to send money instantly from point A to point B without any hiccups.
Bank transfers often take a minimum of a few working days to process as the money traipses its way across borders. For those living in emerging markets whose livelihoods depend heavily on receiving money from their loved ones working abroad, getting money where its supposed to go is time critical.
Sending money to emerging markets is not always a simple as sending directly to a bank account. With approximately 2 billion unbanked, fintech players have created more apt alternative options. The most prominent is by using mobile phones – through mobile money and digital wallets. Whilst people may not have access to a bank account, they are more likely to own a mobile device, or be within reach of someone who does.
Additionally, senders are looking to send in their local currency, while recipients need the same on their end. International compatibility helps opens up a literal world of opportunity, closing the gap and bringing their loved ones a little closer.
3. Low cost
Low transactional fees are necessary, as the nature of the money transfers made by such a demographic are usually not of high values. Traditional methods are often expensive, as transactional fees constitute to a large percentage of the remitted value.
4. Reliability and security
Migrant workers sending money home need reassurance that their hard-earned money will make it to the correct recipient and won’t get lost along the way. There are a whole host of informal remittance players in existence, many of whom offering perks or guarantees for their service at astronomical costs. This is hard-hitting on the pockets of migrant workers, who often feel they have no other option but to just pay the price.
Senders want confidence that their money is safe every step of the way and doesn’t fall into the wrong hands.
In emerging markets, one of the main challenges faced is low financial literacy, in addition to lower education levels. Any service provided must be simple and straightforward to understand, and where possible, localised. A simple interface with a little number of steps is inclusive, and encourages financial empowerment, allowing customers to fully take charge of their money.
Becoming can help tackle the challenges a global money transfer service faces, especially for developing economies, where the penetration of banking services is low.Learn more about our cross-border payment solutions , and let us manage the processes so you can focus on delivering the best international money transfer service to your customers.