How every bank can achieve international remittance success

International remittances are a very important service in our global world. With more people living and working abroad, the need for quick, cost-effective international money transfers is increasing day by day.

The World Bank reports that about 200 million migrants send money to their families regularly. This helps families and also helps the economies in developing countries.

A study by Juniper Research says that digital cross-border remittance system are expected to grow from $295 billion in 2021 to $428 billion by 2025. This growth presents a huge opportunity for banks.

Banks that offer effective international remittance services can boost customer satisfaction, engagement, and profits. Banks have a great opportunity to succeed in this growing market.

In this article, we will look at the key features your bank needs to offer successful international remittance services.

Key Features for Successful International Remittance Services

1. Security and Compliance

Security is very important for international money transfers to prevent financial losses, reputational damage, and regulatory penalties.

Your bank must have robust security measures to keep customer data safe and prevent fraud. They also need to follow international regulations and standards, such as:

• Anti-money laundering (AML)
• Know your customer (KYC)
• PCI DSS, GDPR, and DSP2 compliance
• Strong authentication methods
• Regular web penetration testing
• Anomaly detection and prevention
• Advanced encryption algorithms
• Periodic security scans (SAST, DAST, SCA)
• Clear authorization rules
  

Following compliance not only protects the your bank but also makes customers trust the service more.

2. Competitive Pricing and Exchange Rates

One of the most important things for success in international remittances is offering competitive fees and attractive exchange rates. In the past, it was very expensive to send money abroad due to many intermediaries and hidden fees.

But now, competition and pressure from international bodies like the UN have made these costs go down a lot. For example, in 2017, the average cost to send money was 7.21%, and the goal is to lower it to 5%.

Your bank should join this trend by minimising transfer fees and providing transparent pricing. They should monitor daily fluctuations and offer competitive rates to attract customers. Your banks can do this by:

• Partnering with currency exchange platforms to provide real-time exchange rates
• Clearly communicating fee structures and FX rates to ensure transparency

3. Invest in Technology and Infrastructure

A robust technological infrastructure is essential for smooth and secure transactions. Your bank should invest in:

• User-friendly apps or websites
• Secure payment gateways
• Partnerships with financial institutions for seamless transactions

Advanced fintech solutions can speed up the development process and ensure reliability

4. Choose the Right Transfer Methods

You can offer various transfer methods, including:

• Wire Transfers: They are reliable and widely accepted but can be slower and more expensive.
• Online Transfers: Convenient and faster, often with lower fees.
• Mobile Transfers: Increasingly popular, especially where lots of people use mobile phones Choosing the right mix of transfer methods based on customer needs and preferences can enhance your remittance services.

5. Enhanced User Experience

Providing a user-friendly cross-border payment platform is super important for attracting and retaining customers. Your bank should ensure that their remittance services are easy to use, with clear instructions and support available. Your bank should offer features like:

• Multiple payment channels
• Supported currency corridors
• Real-time transaction tracking
• Instant notifications
• Providing multi-language support
• 24/7 customer service

6. Strategic Partnerships and Collaborations

When your bank team up with fintech companies and money transfer operators (MTOs), they get access to advanced technologies, innovative payment solutions, and extensive agent networks. These partnerships help your bank reach new markets, advanced technologies, and specialized expertise.

7. Offering Value-Added Services

Your bank can stand out from their competitors by offering value-added services such as prepaid debit cards, payroll services for businesses, and financial advisory for people living in another country. These services give additional benefits to customers which makes the your remittance offerings more attractive.

8. Monitoring Market Trends and Adapting

The international remittance market is dynamic, with new trends and technologies emerging regularly. You should continuously monitor these trends and adapt their strategies accordingly. Staying ahead of the curve can help you maintain a competitive edge and meet the evolving needs of your customers.

Conclusion

By implementing the above-mentioned advanced features, you can effectively tap into the growing international remittance market. The potential for growth in this sector is immense, and banks that effectively address these areas will be well-positioned to capitalize on this opportunity.

DigiPay.Guru is a globally recognized fintech solution provider that offers advanced digital payment solutions to banks, fintechs, financial institutions, NBFCs, and businesses. Our comprehensive suite called DG Bank provides products and services such as Mobile Money, Agency Banking, International Remittance, eKYC, Prepaid Cards, Merchant Acquiring, and Scan & Thru