Remittance System: Moving to developed countries to find better job opportunities isn’t a new fascination. People have been migrating to various parts of the world for centuries to help secure a solid economic future for their families. An online money transfer as remittance is one of the essential needs for those who live and work in other countries and need to send money back home.
Information about remittances
Here you’ll find worthy information about remittances and how they work.
Remittance:- The word remittance is derived from the root word ‘remit’, which means ‘to send back’. Remittance can be defined as money you send back as an expatriate to someone for any purpose.
Background:- It is established that people from third-world countries travel to the West for different purposes, including employment opportunities, better education, etc. And in this context, the UK is the best choice for the expatriates from Pakistan and other countries given the UK’s strong economy and the best education system. These Pakistani expatriates send money to Pakistan from the UK to ensure a financially secure future for their families.
Global Expatriate Statistics
Now, let’s take a quick look at the global expatriate statistics.
The stats:- In 2017, the total number of expatriates worldwide stood at around 66.2 million, with an annual increase of about 5.8% since 2013. The number of expatriates in 2013 was 52.8 million. And in the year 2021, the figure rose upwards of 90 million expatriates worldwide. It must also be noted that these figures consist of all types of expatriates, including blue-collar workers and white-collar workers.
Now, let’s quickly go through a few compelling reasons people go abroad.
Dropping one’s anchors in unknown waters away from one’s home is a tough asking. But, it is not without reason. Let’s study those.
Employment opportunities:- Strong economies are a hallmark of developed countries. And a strong economy offers innumerable job opportunities to the native residents and the foreigners. Therefore, people go to other countries to avail themselves of the options they look for unsuccessfully in their home countries.
Weather effects: It is common knowledge that the weather profoundly impacts people’s mood, professional productivity, and creativity. Therefore, many people go to other countries whose weather suits them and, in so doing, escape the harsh weather conditions of their home countries which keep dampening their skills.
Post-retirement well-being:- Many expatriates go to foreign countries where the elderly are taken good care of after they have retired from their jobs. For example, the healthcare services in Australia and New Zealand are far more economical than in many countries.
Political environment:- Many countries in the world often suffer from rough political patches, and this happens more often in underdeveloped countries than in the developed world. This political instability eventually leads to deteriorating law and order, which causes insecurity among the masses. In such a scenario, people prefer to reside in countries with more political and law and order stability.
After this, it is necessary to see the need for remittances for the expatriates.
The need for a remittance system:
The remittance system is in place globally to facilitate the expatriates to send their money to their families as soon as they earn and stay connected financially with their families. And in doing so, they help the economies of their countries where the recipients of remittances reside.
Let’s take a look at a few benefits the remittance system offers.
Time-saving:- The remittance system helps expatriates send money to their loved ones without wasting much of their time.
Speedy transfer: This system helps expatriates quickly transfer funds to their families.
Monetary regulation:- Since the concerned regulatory authorities regulate the formal remittance system in different countries, the expatriates have access to their financial records, which helps them manage their finances better.
Fit for emergencies:- The modern remittance system is appropriate to meet emergencies locally and on the national scale. The flow of remittances takes place through the modern remittance system in short distances. It helps boost the recipient country’s economy, enabling it to meet calamities and other sudden disasters of a considerable scale.
Let’s now see a few features that set the best online money transfer service provider apart from the others in the same industry.
Security:- If a company has tight security for the funds it transfers, such as ACE Money Transfer, you can confidently approach such a company to initiate a transaction.
Exchange rates:- A few companies like ACE offer the best exchange rates linked directly with the international market, given that exchange rates keep fluctuating round the clock.
No hidden fee:- The best company will never have hidden charges or fees. Their fee structure will always be transparent and open to customer scrutiny, which is precisely what ACE Money Transfer truly believes.
Mobile convenience:- A company that offers user-friendly smartphone apps for moving funds while you are on the go can be a suitable choice, but this should not be the only reason you look for. All of the reasons stated here need to be considered.
International remittances can be expensive and time-consuming, especially when transferring money to a foreign country. The transfer fees and the length of time it takes for the funds to be available in your account depending on several factors such as:
The location of the bank or financial institution, as well as their policies regarding international transfers, will be among these factors. TransferWise is a service that aims to make an international money transfer as easy as sending an email, and as transparent as possible.
The team behind the platform has been established in London since 2011 and more recently, they have also opened offices in New York City and Singapore among other locations around the world.
Low fee:- As few companies, such as ACE, charge their customers nominally so that the remitter ends up sending more to their families than paying to the service provider. And that is pretty much the case with many companies operating in the global remittance industry.
Conclusion:- This piece has adopted a holistic view of remittances for the convenience of the readers. It also highlighted the features that set the best company apart from the rest. You need to give due consideration to the features explained above while choosing a company, and your best bet, of course, can be ACE Money Transfer that offers all the features stated above to its valued customers.