Remittance

Global Remittance

 

Global Remittance

 

Article
Finance
Corporate World / Global Community

 

To keep the machinery of the world running, one of the essential elements is
money, which works as oil to keep it all going. Money facilitates billions of
transactions by giving goods and services in return. Among many type of
transactions, the subject of this article is remittance; an action of sending
money between two separate account holders. In simple words, remittance
is a transfer of money from one bank account to another either domestically
or internationally.

 

Contents

1. Remittance
2. Transaction Monitoring by Government
3. Types of Remittances
4. Remittance Impact on Developing Countries
5. World’s Top Remittance Sending Countries
6. World’s Top Remittance Recipients
7. International Remittance Life Cycle
8. Digitalize Money Transfer
9. Money Transfer Software

 

1. Remittance

Remittance is not a new phenomenon in the world, one way or another it has
always been a part of human history. Several European countries, for
example Spain, Italy and Ireland were heavily dependent on the received
remittances during the 19th and 20th centuries. All of those countries
created policies on remittances. For instance, Italy was the first country in
the world to enact a law to protect remittances in 1901, while Spain was the
first country to sign an international treaty (with Argentina in 1960) to lower
the cost of the remittances received. Since 2000, remittances around the
world have increased significantly and represent the largest source of
foreign income for many developing economies. Now, let’s understand the
importance of remittance and its impact on the global economy.

 

2. Transaction Monitoring by Government

A country’s government and central bank plays a key role in the circulation
of money. Government monitors money supply and keep the record of all of
its international credits and debits. A country’s balance of payment (BOP) is
a record of its international transactions. This record track transactions by
individuals, businesses and the government. Tracking these transactions
helps the government to keep a control and monitor how much money is
coming or leaving the country.

 

3. Types of Remittances

There are two types of remittances: Outward remittance and Inward
remittance. In simple words, sending money abroad is outward remittance
and receiving money is inward remittance. An outward remittance is a safe
way of doing international money transfer. You can use outward remittance
to cover business transactions, family support, cover the living expenses,
buy assets, and more. However, inward remittance heavily protects
underdeveloped countries against financial setbacks.
 

4. Remittance Impact on Developing Countries

Inward remittance matters a lot for underdeveloped countries. It improves
the financial status of family members left behind and thus accelerates
economic growth of receiving countries. For the developing countries inward
remittance boosts the gross domestic product (GDP); allowing the
government to tackle poverty and carry out productive development
strategies. Moreover, inward remittance helps to improve financial
autonomy of local governments.
 

5. World’s Top Remittance Sending Countries

Predominantly, migrants are the force to keep this wheel of remittance
moving; who send huge amounts of money back home to their loved ones.
As migrants have shuffled globally; they have family members back home
who they continue to support through cross-border remittances. The United
States has been the leading source of sending remittances. Moreover, Saudi
Arabia, United Arab Emirates, Germany, Canada, France, Russia and
Switzerland are the largest senders of remittances globally.
 

6. World’s Top Remittance Recipients

Inward remittances have a major impact on the economy of developing
countries. India, consecutively remains the top receiver of remittances in
2018. Other top recipients are China, Bangladesh, Philippines, Mexico,
Pakistan, Egypt, Vietnam, Ukraine and Nepal. These remittances work as a
lifeline for millions of people suffering from the financial crisis. Inward
remittance serves to protect the people of under developed countries
against poverty.
 
World Top Remittance Sending Countries
 

7. International Remittance Life Cycle

There are many different ways to transfer funds internationally. Payment
methods include cash, check, wire transfer, mobile money, bank draft and
online payment gateways; any way can be chosen to send money abroad.
After the transaction has been made, no matter the method chosen,
transaction take a basic route to complete the payment cycle and then the
funds will be transmitted to the recipient’s bank for processing. On the other
hand, the payout location or partner in the recipient country receives
instructions from the sending service to deliver the funds in the specific way
the sender has asked for. Briefly, this is how remittance life cycle works and
money transfers from sender to beneficiary.
 

8. Digitalize Money Transfer

Speaking of remittance technology and to serve money transfer business
globally, RemitAnywhere is here with years of expertise. We are based in the
United States. At the moment we are serving live in more than 50 countries
around the globe with robust reliable technology. With over 20 years of
combined experience in product development and software lifecycle,
RemitAnywhere offers an enterprise level software; a total solution that can
centrally manage and automate workflow of your money transfer
organization globally. As a technology service provider company, we offer
money transfer software that automates the full life cycle of a money service
business, bank, and money transfer operation from the point of initiation till
the fulfillment.
 

Digitalize Money Transfer

 

9. Money Transfer Software

Our solution is a collection of money transfer products and services that
work hand in hand to create a centralized cloud-based money transfer
system that is both user-friendly and compliant with the regulatory bodies
worldwide. We ensure that all of our client’s data is secured and kept safely
on our secured servers. We guarantee robust reliable technology for your
money service business. Whether you are a start-up or an established
business, you are welcome to contact RemitAnywhere.
 
For more information, advice and support you may contact us.
RemitAnywhere would be delighted to help grow your business.

Contact us at: sales@remitanywhere.com or call at: 646–722–9500
Thank you for reading!

 

Written by
H. A. Tepha

 

This publication is not intended to cover every aspect of the topics with which it deals. Seek professional advice if you need any financial assistance. This publication is provided for general information purposes only.

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