Money transfers, especially international money transfers for migrants, are a worldwide growing market. Back in 2006, the amount of transfers realised in by migrants in the world reached 300 billion USD. And we estimate at 150 billion USD the amount of transfers we are not able to track.
Attracted by the potential of this growing market and the profit, many kind of companies are born and try to penetrate the market. Because it’s not hard to do it, there is not only banking institutions, but big telecommunication companies and startups too. Public authorities need to regulate the market.
This market is a huge opportunity for funds to make their activity bigger and grow their profits. They also want to scale their mission and services. They can do cross selling and up selling, following the growth of the money transfers world, because it does not exist a lot of offers.
Although, bad offers and services can impact in a bad way the global activity of funds. That’s why they need a better understanding of how money transfer services work. If not, they will know losses. The money transfer environment is very specific, complex and need to be known. The more we can see new actors enter on the market, the more it becomes hard to penetrate it.
Why? Because offering money transfer services implies significatives development, in every aspect of the activity: human resources, product, marketing, sales, IT development, customer support, reglementation, law, etc.
Deal a partnership with an already established entity is the best solution to do it, but it is also a risk: no relation can guarantee success.
Despite of all these difficulties, a lot of funds are going onto the market and try to make profit. That’s why you may have seen and you will see in the next months new actors. Today, according to the worldwide bank, 500+ companies are already offering money transfer services.