Remittances offer significant business opportunities for banks
- Income potential: Typically a bank can look forward to three levels of earnings through remittances: upfront fees/remittance charges, forex income, and float income
- Market share increase: Banks are able to offer lower costs, making them competitive with Money Transfer Operators. This enables banks to expand their market share in one or more regions
- New business and customer loyalty growth: Remittances are value-added services from the bank to its customers, as well as effective tools to attract new customers
Remittances, due to their low values, are relatively low risk. This, coupled with the benefits of fee revenue and new business potential, make it an attractive and high-margin opportunity for banks. Fundtech’s Transact Remit solution can bring the opportunities of this market to your institution.
