Collaboration is necessary given the financial services industry’s continual metamorphic transition. This tactical choice was made due to the advent of fintech companies. That use technology in radically new ways, the embrace of technology by traditional providers, and the involvement of BigTech. Nevertheless, the main forces behind this paradigm shift, nevertheless, are customers with their quickly changing demands and expectations.
Since there have been so many significant disruptions in the financial services industry, a new generation of consumers has emerged. These customers want convenience and quick access to online money transfers. Customers born and nurtured in the digital age want personalised services, real-time delivery of agile services, and competitive pricing. All of this is accomplished without sacrificing security.
Nowadays, traditional and fintech financial services organisations collaborate for the mutual advantage of both parties—the clients, in the end. Fintech startups are gaining unprecedented access to capital and expansion opportunities, while legacy players benefit from the game-changing innovations.
Remittances
Remittances made by migrants to support their families at home, whether money or commodities, are called workers’ or migrant remittances. In recent years, they have expanded quickly and are now the main source of foreign money for many emerging economies.
Given that many take place through unofficial routes, it is challenging to determine the precise magnitude of global money transfers. Globally, $596 billion in officially reported international migrant remittances is anticipated in 2017.
Advantages of remittances
Remittance flows are typically countercyclical, increasing during economic downturns or in the wake of a natural disaster when private capital flows are more likely to decline. They also tend to be more stable than capital flows. They frequently provide the needy in politically unstable nations with an economic lifeline. According to World Bank estimates, they made up more than 70% of the GDP in some parts of Somalia.
The overall volume of remittance transfers has increased despite the COVID-19 problem and political unrest. Remittances to low- and middle-income nations hit US$605 billion in 2021. Compared to 2020, that represents an increase of more than 8%, much above earlier projections.
Sending money through legal channels
An example of an ever-increasing remittance influx is mainly caused by international money transfer service providers like ACE Money Transfer partnering with banks with extensive networks throughout Pakistan, like Bank Al Habib. Both partners have intensified their efforts to promote legal remittance channels by providing free, simple, quicker, and secure transfers from the UK, Europe, Canada, Australia, and Switzerland in keeping with the Pakistan Remittance Initiative’s (PRI) objective.
The lengthy nature of international money transfers makes them a top concern for expats everywhere. This issue has been successfully handled by a broad network of banks with more than 1000 branches throughout Pakistan combined with the cutting-edge technology of ACE Money Transfer, enabling transfers to Pakistan to happen as quickly as 7 seconds.
Illegal channels like hawala/hundi
When clients consider that the regulated channels would include large taxes and unexpected fees, they frequently turn to the kerb (hawala/hundi) market. But they lose a lot of money since unauthorised firms frequently offer hidden fees, exchange rates that are too low, and other costs. Additionally, this technique risks losing their hard-earned money with no responsibility.
Benefits of collaborations at the user end
Collaborations provide customers with a convenient, user-friendly, and immersive digital platform. From anywhere in the globe, people can send money home as a bank deposit or cash pickup, and its recipients can take money whenever they want, including on weekends and public holidays.
High transfer fees are another financial strain placed on expats, in addition to hidden fees. Regardless of the amount of money sent home, these campaigns offer free Money Transfers on cross-border transactions.
Banks, regulatory agencies, and money transfer companies like ACE Money Transfer contribute to reducing the unregulated remittance sector. Increased remittance inflows to third-world countries are made possible by incentives and ongoing advancements in remittance technology.
ACE Money Transfer is one of the most reputable companies in the world of remittance transfers. Many expats living abroad use their services whenever they need to send money swiftly, securely, and economically to any part of the world. ACE doesn’t only offer economical transfers but also gives many incentives to their valuable customers, helping them fulfil their dreams without any extra cost.
Bottom line!
The collaborations, to a great extent, have successfully provided this new type of customer with customised and popular financial services. ACE Money Transfer is continually collaborating with different banks to acknowledge the efforts of the expats who live thousands of miles away from their loved ones and compromise their dreams just to make their living standards better. These factors make money transfers a joyful experience.
