People setting off to foreign countries for the chance to improve their work prospects and to earn better money and living conditions is not a new phenomenon. Migrating began decades ago and still continues to grow in a steady fashion. Just as millions of people started working abroad, it caused the world remittance industry to explode wide open.
Traditionally, sending money overseas was a highly complex and expensive task, involving never-ending chains of middlemen, manual paperwork, and hidden charges. Fortunately, developments in the remittance industry and the technological advancements over the past couple of years mean that individuals can enjoy faster and cheaper online money transfer services at ease.
In earlier times, migrants conducted international money transfers through banks. However, with the rise of the Money Transfer Operators (MTOs), there has been an all-around shift in the remittance industry. IMF defined MTOs as “financial companies (but usually not banks) engaged in cross border transfer of funds using either their internal system or access to another cross-border banking network.”
People realized the better convenience and transparency of MTOs and trusted them with their money transfers. This led to the sudden bloom of numerous money transfer agencies across the globe. Among many countries receiving remittances, here is the list of the top 5 countries receiving the maximum yield of world remittances:
- India (83.1 billion)
- China (68.4 billion)
- Mexico (38.5 billion)
- The Philippines (35.2 billion)
- The Arab Republic of Egypt (26.8 billion)
The growth of remittances significantly affects the economy of the receiving countries with an increase in Gross Domestic Product (GDP), foreign investments, development of infrastructure and living standards etc. In today’s world, as most of the senders and recipients have access to financial services such as basic bank accounts, as well as, steady internet connection, there is no doubt that people will opt for the faster and cheaper online money transfer in Australia and across the world. Money transfer agencies are offering customers greater options, safety and control, for sending and receiving money internationally.