| The Remittances Explainer
In this report, we explain how remittances work, the countries on both the send and receive side that dominate remittance volume, and how remittances differ depending on payment mechanisms. We also look at the top challenges faced by remittance companies and what factors digital-first remittance startups are capitalizing on to disrupt the traditional remittance model.
Here are a few of the key takeaways from the report: - Remittances — primarily payments sent by foreign workers to their relatives back home — is a massive global industry that digital players are just beginning to disrupt. $583 billion was remitted globally in 2014, according to estimates from the World Bank.
- The remittances industry is a highly imbalanced one, with certain countries dominating send volumes and others dominating receive volumes. The US sent 22% of global remittance volume last year, and India received 12% of global remittance volume.
- Different types of companies offer remittances, but it is money-transfer operators (MTOs) that primarily focus on these cross-border transfers. Banks actually dominate the remittance market, while MTOs, including Western Union and MoneyGram, have about half as much market share as financial institutions.
- Digital players are finding an opportunity to update the remittance model and gain a foothold in this industry by lowering overhead costs and passing savings on through lower fees. Digital-first MTOs use mobile and online channels to send money, bypassing costly agent-send networks. They also use more efficient and cost-effective computer modeling to meet compliance standards.
In full, this extensive report: - Sizes the remittance market and assesses total revenues earned through facilitating cross-border transfers.
- Examines which markets and regions are the top for sending and receiving of remittances.
- Lays out the different types of companies offering remittances and why certain players dominate the industry.
- Unpacks the challenges to facilitating remittance, including sociopolitical instability and major compliance burdens.
- Considers ways digital-first startups have begun to disrupt remittance companies and bring down fees.
| |
| The Digital Remittance Report
In this report, we size the total remittance market, company-specific market share, digital's market share, and digital's growth at major remittance firms. We also assess how disruptive digital startups have been by comparing their fees with market leaders, and by juxtaposing their business models with those of legacy companies.
Here are a few of the key takeaways from the report: - Digital's share of the global remittance industry is still fairly small at 6% — but growth is extremely fast at digital-first startups and legacy companies.
- Fourteen year-old Xoom makes more revenue from electronic channels than 75 year-old MoneyGram, the second-largest remittance company in the world.
- Startups are undercutting incumbents' fees in certain corridors; however, legacy firms have matched prices in many major corridors.
- Legacy firms' businesses are already responding to the threats posed by digital by lowering fees and adjusting business strategies. However, they face lower margins if they continue to compete with startups on pricing.
In full, this extensive report: - Sizes the remittance market and calculates major remittance companies' market share.
- Estimates digital's share of the market vs. cash.
- Quantifies digital's impact at remittance startups and legacy firms.
- Breaks down the business models employed by each type of remittance company, and determines which ones are in a better position for growth.
- Compares transfer fees in various corridors to assess the competitiveness of each firm.
- Explores other platforms that could completely upend the industry from the outside.
- Determines how legacy remittance companies will fare in the digital age – the answer may surprise you.
By bundling these two pieces of extensive research together you save an immediate $495. Don't hesitate any longer…
| |
Tidak ada komentar:
Posting Komentar