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Why are you still using banks to transfer your money abroad?

Why are you still using banks to transfer your money abroad?

International money transfers

There has always been a pressing need to transfer money abroad throughout history. For a long time, there was a need to transfer money overseas by migrant workers who needed to get money to their families and loved ones in their home country. The number of migrant workers who require money transfer options is constantly growing. Additionally, as our world becomes a more globalized place, other reasons for international money transfer have cropped up:

  • Business owners do work internationally and need to send and receive money abroad.
  • Many people live or work away from their home country for brief or extended periods and need to transfer money back and forth between their international accounts.
  • More people than ever retire or have a vacation home in a country that is not their home country. They may need to transfer money to purchase property, or rent a home.
  • The number of people who buy rental properties abroad as an investment is also growing. As a result, there is a growing need to transfer money abroad to run their rental business, or manage tenant finances.

Despite the growing number of people who rely on international money transfers to live, most people still think of banks as the primary method of transferring money overseas. This is an outdated method of international money transfer. In fact, it hasn’t truly been relevant since the 1990s. So why do people keep transferring their money this way? Because they haven’t been made aware that better options are available!

The Better Option

Banks charge a lot of hefty fees for international money transfers. They also don’t always guarantee the best exchange rate at the time of transfer – which isn’t good. That’s because their bricks-and-mortar locations cost them a lot of money. Instead of finding a better way to pay for those costs, they pass them along to money transfer customers through high fees. They also have an extensive process they must get through, which has traditionally been viewed as making their transfers safer. What it’s doing is slowing them down and making their customers wait while they jump through regulation and compliance hoops that are antiquated and no longer necessary. Why would anyone want to spend extra money to transfer their money abroad? Luckily, there are a wide range of online-only (or online-first) FX companies that solely focus on transferring money overseas.

These companies, like British Moneycorp, aren’t banks. They’re online platforms, that are completely secure, that allow you to transfer your money internationally with low or no fees and a guaranteed best exchange rate at the time of transfer. They usually offer a wide range of online tools, as well, such as a currency converting calculator, live rate graphs and reports, and more. Money transfers can often be performed in 24-48 hours, and they usually offer a wide range of currency options for transfer. The best part is the convenience they offer. By operating entirely online or on a mobile app, you can access your money transfers anywhere and anytime. For people where money transfers are a reality of their everyday life, this convenience easily overshadows the often-complicated process of bank transfers.

Why Are People Still Using Banks?

Even with amazing online-only money transfer companies existing, many people still use banks as their primary source for international money transfers. Why? There are several reasons:

  • Old habits die hard. It’s true. But it’s important to realize that an old habit is just that – old. Being flexible enough to try new methods of money transfers can save you time and money.
  • If you have a bank account at the bank from which you’re doing the transfer, it may seem more convenient to just use your bank. But remember – having an account won’t help you escape their higher-than-necessary fees.
  • Many people assume that there is a hefty risk involved when using online money transfer companies. The fact is that’s not an accurate assessment of the industry. Yes, there will always be scams out there. But it’s also possible for you to run into scams right at your local bank. Vet the companies you’re planning to use – reputable money transfer companies like WorldFirst are out there, just waiting for you to discover them.
  • Lack of awareness. There’s nothing wrong with not using a better option if you didn’t know the better option was available! Many people aren’t even aware that these online money transfer companies exist.

By sticking with what you know and continuing to use banks for international money transfer, you’re only hurting yourself. Don’t keep losing valuable time and money on your international money transfers – consider working with an FX company instead! There are many different options, and you can find the company whose fees and transfer structure works best for you and for the area that you live in.