Money transfer to Nepal from Singapore: current state and key trends

Money transfer to Nepal from Singapore: current state and key trends

The use of online money remittance services and industry has witnessed an increasing trend from last 20 years. There are lots of changes witnessed in the technology for money remittance industry. One of the key reasons of a fast-growing international remittance industry is globalization which led to increase the number of the migrants from developing countries to developed countries, increasing international trade and educational migrations.

There are many Asian countries from where people migrate to other Asian and European countries. One of the Asian countries from where people migrate to other countries is Nepal. People moves to other countries from Nepal such as India, Indonesia, Singapore and many other. Out which Singapore has been the leading country to which most of the people from Nepal migrates on a regular basis. People regularly send money from Singapore to Nepal.

In the light of the higher rate of migrants from Nepal to other countries, the size of the remittance industry is huge and with the advancement of the technologies and regulation the size of the industry is increasing day by day.

Here are some key trends and current states of remittance industry in Nepal and other Asian countries

Transformation of old to new remittance business model

In the year 2016, the shift of the industry has been addressed from agent based services to receive cash transaction through agent or representative of the remittance companies to total digital remittance service system. People prefer more to the digital system of money remittance in the recent years. By the year 2016, total 47% percent of the total remittance was done through traditional agent based money remittance service providers and rest was done through fully digital channel. In next five years, this percentage also seems to increase from traditional to digital system.

Considerable decrease in remittance fees and charges

This is again a very important change in the money remittance industry. With fully digital channel of money remittance, the involvement of people has been minimized which led to decrease the charge of money transition from one place to another place. the money, with digital channel transits electronically, which make the process less time and money consuming.  With traditional method of sending money internationally was supposed to cost around 8.93% which has come down to 7.52% with increasing use of digital channel of money transfer. The cheapest rates of money remittance all around the world are as lower as 5.32%. We can say that the remittance charges has been reduced by 40% in comparison with the traditional way of sending money internationally.

Transformation of old model of sending money into new and advanced model

With the increasing utilization of the advanced online mode of money transition, the use of old system is getting decreased day by day. In almost every country, with the increasing use of internet, people are shifting from the agent based money remittance system to fully digital money transfer system. The new system is more preferable by the people all around the world because of the lower fee charges of money transfer, safety of money, secure channel, and minimum time of money transition, higher value of the money sent, proper and information on transaction, instant notification of the transaction.

More number of global players available in the market

This is again a very positive and result oriented change in money remittance industry over the past few years. With the increasing use of the digital channel and build trust on it, has made the world to invest in the digital remittance industry to make the industry more fruitful. Today, there are higher numbers of global players available in the markets that are providing world class money remittance services to the world.

 

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