Finance Tips

Remittances contribute to economic growth and to the financial and social inclusion of needy people worldwide. Recent studies have shown that remittances not only play an important part in many people’s daily lives but are particularly important for people during financial crises.

In Latin America and the Caribbean, remittances play an important role in the economy of the region, totalling over $66.5 billion in 2007, with about 75% originating in the United States. This total represents more than the sum of foreign direct investment (FDI) and official development aid (ODA) combined. In 7 Latin American and Caribbean countries remittances account for more than 10% of GDP and exceed the dollar flows of the largest export product in almost every country in the region.

A majority of the remittances from the US have been directed to Asian countries such as India, the Philippines and China. Most of the remittances happen by conventional channel of agents, however online money transfer has gained substantial momentum over the years. Continue reading ‘Top Countries Receiving Remittance Money’ »

There are 2 kinds of remittances-family and community. Family remittances are money sent by individual immigrants to family and friends back home. These remittances are often used to meet their most basic needs.

Community remittances are money sent by immigrants and by hometown associations to communities in their home country. This money is traditionally used for infrastructure like roads, schools, parks and churches.

Remittances are now more than double the size of net official flows and are second only to foreign direct investment as a source of external finance of developing countries. In 36 out of 153 developing countries, remittances are larger than all capital flows, public and private.

Also, remittances are stable and may even be counter-cyclical in times of economic hardship. Moreover, remittances are person-to-person flows, targeted to the needs of the recipients who are often poor. Continue reading ‘Understanding the Importance of Remittance’ »

This corridor is now characterized by more competition offering reliable, fast and formal remitting options at lower costs to a growing population of Mexican immigrants in the United States.

Remittance flows parallel long-established migration patterns between Mexico and the United States. Funds transferred to home communities reflect a continuing bond between migrants and their homes. In the U.S.-Mexico corridor cultural familiarity and reliability are key factors along with cost in choosing a funds transfer system.

Given the social context of remittances, cost is not the only determining factor for choosing a funds transfer system among Mexican migrants. Many migrants are as concerned with the perceived reliability of a channel as with the price and continue to prefer channels that are culturally familiar or operated through personal contacts, even if they are more expensive. Continue reading ‘Remittance to Mexico’ »

If the recipient of the funds has an account with one of these banks, it might be a good idea to open an account locally with the same bank, as money being sent between accounts within the same bank is often processed quickly and at little or no cost.

Bank transfers between two different banks are also relatively easy, although moving money from one bank to another can entail a waiting period of up to 5 business days with substantially higher costs.

Through banks, you can also initiate wire transfers to Brazil. A wire transfer gets the money to its destination quickly, but there needs to be a corresponding bank to receive the wire transfer. Fees can be very high for international wire transfers, but if the money needs to arrive quickly, this is a viable option.

Another way to send money to Brazil is through either an ATM card or a pre-paid debit card. In an emergency this may not be the best fastest method, since it takes time for the card to be sent to the person receiving the funds, but for people who send money regularly to family in Brazil, the pre-paid debit card or ATM card is a great option. Continue reading ‘Tips on Sending Money to Brazil’ »

Many of the world’s leading money transfer services are gaining market share, despite the global economy. Several money transfer companies are striking deals with many of the world’s leading banks and financial institutions to allow their users the ability and convenience of using their service right from their local banks. All of this means that as other markets are opening up, traditional money transfer services are looking to banks to capture more market share by offering their services right alongside bank account-to-bank account services that banks already offer.

How the pre-paid credit card market and Internet based money transfer services will change in the coming years is still unclear. But with the growth of pre-paid credit cards and the fact that more consumers are using pre-paid mobile phones, it is expected that these service will begin to play a larger role in the years to come.

The push to open technologies that will allow transfer services through cell phones is already being felt by some banks. The iPhone is so far the only phone that has the ability to store credit card information for purchases in a pay-as-you-go style, but it is expected to expand into other phones with new technologies. Continue reading ‘New Money Transfer Services and Evolving Transfer Options’ »

Currently there are several ways to send money to Brazil. One is through the wire transfer system at any bank. For international service, most wire transfers involving banks use what is known as the SWIFT system. The SWIFT system has been around since the mid-seventies, when seven international banks created a global system to send monies to other countries. The biggest drawback for some is that both parties need to have bank accounts. The sending party needs a bank account in the country they are sending money from and the receiver need an account in the country the money is being received in. If the sender or receiver is not in their home country, it can be difficult to send them money when they do not have a bank account in the country they are sending the money from.

Then there are other systems that allow one party to send money in the name of the other and gives the receiver a security code with which to collect the money. In most cases, both parties usually need to present identification to send money this way. This system has been tightened in the last few years since September 11, because it was the primary way that criminals sent money internationally.

Today wiith the increase of cell phone use in just about every country of the world the way in which money is transferred may soon change. Many global mobile phone service providers are putting together a system to send money from one person’s cell phone to another’s. The mobile money transfer system is expected to change the way people send money and improve the ease in which mney can be sent. Continue reading ‘Sending Money – Current Options and What's to Come’ »