Cross-Border Money Transfers: Why Banks Should Compete
Report Summary
Cross-Border Money Transfers: Why Banks Should Compete
Banks that view remittances as a long-term strategy may satisfy the deeply rooted social needs of their customers.
Boston, August 29, 2013 - The global cross-border money transfer business, which long revolved around physical storefronts, is rapidly evolving. Digital channels for originating payments, novel models for exchanging funds, and expanding funding and distribution options for senders and receivers are creating opportunities and challenges for banks, money transfer organizations, and digital wallets alike. Further, the remittance market is growing, fueled by immigration and global commerce trends, enabling growth and revenue opportunities for companies that choose to play. But how can banks emerge as strong competitors in the global remittance market, and should they even try?
Based on February to May 2013 Aite Group interviews with industry executives representing banks, money transfer organizations, digital wallets, and technology providers to the banking industry, this Impact Note by senior analyst Arkady Fridman discusses the modes of transfer in the remittance space, underscores competitive advantages for financial institutions, clarifies reasons for FIs to enter the business, and delivers strategies on how FIs can capitalize on their strengths to capture a share of this market.
This 29-page Impact Note contains three figures. Clients of Aite Group's Retail Banking service can download the report .