International money transfers have a long and illustrious history of evolution. From the Biblical times to the current globalized Fintech era, it has passed through many phases of transformation. This article takes you through the evolution of money transfer, the technologies responsible for its Fintech transformation, and the remittance options available to Non-Resident Indians ("NRIs") today.
Western Union was the first company to begin telegraphic transfers in 1872. The process was cumbersome, time-consuming and expensive. The twentieth century witnessed the onset of the SWIFT era.
The SWIFT Era
The Society for Worldwide Interbank Financial Telecommunication or SWIFT established the primary benchmark for international money transfer activity in the 20th century. Today, you can send money to India "swiftly", mainly due to the world-wide SWIFT network of 10,000 member financial institutions in 212 countries. SWIFT is not a money transfer facilitator but a money transfer messaging service. Its messages carry a unique SWIFT code and ensure secure money transfers across the world.
Today, the international money transfer revolution is being revolutionized by the Fintech sector. Wire Transfers use the SWIFT framework. International wire transfers provide another way of transferring money from one country to another with almost every financial institution offering this service with their local bank accounts. However, in most instances this service might cost more as compared to a pure money transfer service. ICICI Bank's Money2India is one such money transfer service, which helps transfer money from any bank account in the USA to any bank account in India.
Financial technology, also known as Fintech, is an economic industry composed of companies that use technology to make financial services more efficient. Some major Fintech technologies that have transformed the remittance market are:
Blockchain has impacted remittances as no other technology has. This colossal digital ledger stored on the cloud maintains billions of industry-specific accounts centrally. This benefits the remitter, the receiver and the remittance agencies. The main advantages of this are:
Cryptocurrency is a gift of blockchain technology
The primary options available to remitters today are:
India is the world's largest remittance destination. In 2018, it received approximately USD 79 billion in international remittances. Over 30 million NRIs send money to India regularly from various countries. With a blend of established and emerging money transfer options, NRIs can now remit money to India with the assurance of safety, security and speed.
Choosing the right money transfer service can help you save both time and money when you wish to make remittances to friends and family anywhere in the world. ICICI Bank's Money2India is a low cost and trustworthy international money transfer service that lets you transfer money to India from around the world (including from the United States of America) in just a few clicks. If you are a first-time user, you need to register and submit the KYC information. Then, add the beneficiary details (friends or family in India), select the bank account you want to pay from, click confirm and off it goes - simple and effortless.
And with the Money2India Loyalty programme, you can win rewards and benefits.
Keep the above tips in mind the next time you need to do an international money transfer and choose ICICI Bank to stay worry-free.