Growing demand for international money transfer in UK

As the world becomes smaller, many people find that their loved ones are overseas – but the connections between them are as strong as ever. In fact, visits abroad to see friends and family are steadily increasing, and as a result, so is demand for international money transfer

The rise of cross-border trips – and money transfer

Figures from the ONS show that the number of visits abroad to see friends and family grew by 7.8% last year, while visits to the UK for the same reason were up 4.8%. In fact, around 323,000 Brits left the country last year to start a new life abroad, which means that international money transfer is now becoming routine for many.

However, this doesn't mean that banks are the sole providers of such services. The currency exchange sector is thriving in its own right, and many of the biggest players are individual companies, and are often chosen by consumers who are unwilling to tolerate the high fees that are often levied by banks: banks typically charge between 5-8% in remittance fees which can seriously add up, and as a result, many travellers and expats are looking elsewhere.

Reasons to transfer cash

Research from global transfer firm Xpress Money shows that thousands of UK consumers have transferred funds overseas, with some of the top reasons for doing so (and associated points to consider) being:

• Transfers to family and friends, typically for emergencies, one-off gifts or regular financial support.
• Property. Buying or selling property abroad can be an expensive business, which means fees and exchange rates are a serious consideration, and is why shopping around for a competitive money transfer service is so important.
• Paying bills. Whether you've got a property abroad that requires mortgage payments and regular upkeep, or you're travelling and need to make sure your bills at home are taken care of, fixing the exchange rate and setting up a scheduled payment can be an easy way to ensure that all bills are paid on time while you're abroad.
• Salary transfers, where you'll need a simple way to send money home if you work overseas.
• Emigration. If you're looking to relocate overseas, ensuring your money travels with you is a priority, which is where the right money transfer service can come in.

Continued innovation

Demand for money transfer may be higher than ever, but so is the level of innovation in the sector, with data from Juniper Research estimating that the number of mobile money transfers is set to increase by 150% in 2015 to total more than 15 billion – and by all accounts, it could increase further in the years to come, with new mobile platforms constantly in development to offer more versatility and ease of transfer than ever before.

Source: Money Facts

Web: www.moneyfacts.co.uk

Date: 26/11/2015

Time: 20:45 GMT

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Rickshaw Pullers made Director to launder BLACK MONEY through “Bank of Baroda”

Startling facts in the money laundering scam in Bank of Baroda to the tune of Rs  6,172 crore, which was busted by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), are coming out as the investigation progresses. 

The hoarders have roped in people living in slum areas and doing petty businesses and even rickshaw-pullers to act as directors of fake companies only to be used for transferring huge amounts of money to foreign countries. The launderers paid them Rs 10,000 to 15,000 per month and opened accounts in Bank of Baroda in the name of the fake companies. 

The modus operandi of these black money operators was to approach people and take their Voter ID card. With the help of their Voter ID details, they take PAN cards for them and open the bank account in Bank of Baroda and in Hong Kong. They did the same process for 59 fake companies. 

Few businessmen with the help of Bank of Baroda Ashok Vihar branch Assistant General Manager SK Garg and Head of Foreign Exchange Division Jainish Dubey operated the black money transfer in May, 2015. 

Once the accounts were open, the transfer of money through the fake companies belonging to either exporters or importers would take place. To do big transactions, they overvalued the goods.

Enforcement Directorate in its release said that, "For such overvaluation, such exporters require foreign exchange in the foreign country equivalent to overvaluation. While importing the goods, the importers undervalued the imports to save the custom duty, they require availability of foreign exchange in the foreign country to pay the differences."

Source: Sakshipost

Date: 23/11/2015

Time: 16:24 GMT

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Mobile Money Transfer Taking Over Banks Services

Internet Banking is changing the banking industry, having the major effects on banking relationships. Banking is now no longer confined to the branches where one has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts.

In true Internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time.

Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus, now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services.

In Ghana the fastest growing electronic banking is the mobile money transfer within the various telecommunications companies in the country.

With close observations on the market, schools and businesses in the country, mobile money has been growing very rapidly due to the demand of customers who transact business using that channel.

In an interview with the managing director of Cal Bank limited, Frank Adu Jnr. explained that the impact of e-banking is gradually taking over the services of banks in the country.

According to Mr. Adu Jnr. after conducting a survey the bank realized that the underprivileged, semi- literate, illiterate people enjoy the e-banking more than the educated ones with the reason being that they receive an alert right after they have sent the money and that alone makes them enjoy the service more than any other banking services

He added that the banks are planning to collaborate with the mobile companies to service customers in the mobile money services because failure to do so will lead banks to lose their customers to the mobile companies.

In an interview with Emmanuel Ala, a student, he told the DAILY HERITAGE that he has been using the mobile money transfer for a year and half now to pay his fees because his parents believe it is the best way to send him money without they travelling over to his school to pay the fees.

According to him, mobile money though sometimes very annoying to use due to network failure but it is the fastest way of sending money to families and relatives because staying in a long queue at the bank can waste one’s precious time.

He said “Mobile money transaction is the best for me because it is the fastest way of getting money from relatives without wasting much time because the moment you receive an alert you can go to the mobile company for your money without any delay.”

Dr. Henry Kofi Wampah, governor of Bank of Ghana (BoG) at a press briefing said the central bank is putting in place systems and platform to monitor the activities of the mobile money business in order to put appropriate measures to make the system easy to deal with.

Also Janet Sackey, a business woman said she has diverted sending money through the banks for her business to mobile money because it has made her business move faster because when she needs goods from her clients she sends the money to them through the mobile money transfer system and within ten minutes she receives confirmation from the clients to expect the items needed.

Source: Peace FM Online

Date: 22/11/2015

Time: 13:42 GMT

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Top-10 Remittance Receiving Countries by Country Income Group

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UK banks hardest hit by non-bank money transfer firms

The FXcompared International Money Transfer Index (IMTI) incorporates data for mid-range transactions between £1000-£10,000 from all major banks in the UK, US, Canada and Australia. The top 20 non-bank money transfer providers based in the UK now account for over £40 billion of foreign exchange per year, saving customers over £900 million annually, according to data compiled by FXcompared.

The figures show the impact of increased competition from non-bank providers such as Transfer Wise and World First in the UK market and the dampening effect of competition on bank fees. While UK banks charge an average of 3.6% on a £10,000 transaction compared to an average of just 0.9% charged by non-bank providers, they still provide better value than their counterparts in other markets where licensing issues and regulatory hurdles have proved formidable barriers to entry.


UK customers save, for example, about 36% on a £10,000 transaction compared to sending the equivalent amount in Australia.


Nonetheless, for every £10,000 transferred internationally, UK customers are typically receiving just £9,640 worth of their foreign currency when using a bank, compared to £9,910 when using a non-bank provider.


FXcompared managing director, Daniel Webber, “The FXcompared IMTI will provide greater transparency for a fast-changing, growing industry that is experiencing big technology shifts as non-bank providers become more prominent. As the international money transfer market continues to change, this type of data will support the market’s development and help banks, non-bank providers and customers better understand the industry and make more informed decisions about moving money overseas.”

Source: Fin Extra

Date: 21/11/2015

Time: 09:25 GMT

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Zimbabwe migrants send home nearly $2 billion, easing misery of relatives facing economic ruin

When Nyarai Goredema lost her job as a manager with Harare-based Msasa Steel in June, she sold some of her possessions and put her home on the market. When no one offered to buy it, she turned to her son who works at a bank in neighbouring South Africa for support.

“It’s harsh on me and on him,” the 48-year-old widow, who lives on the $500 to $1,000 her son sends her each month, said by phone. “In all my life it has never been this tough.”

About 3 million of Zimbabwe’s 13 million people have left the country in the past 15 years as policies pursued by President Robert Mugabe’s government have driven much of the southern African nation to ruin. The money they send to those left behind is playing an ever-increasing role in shoring up an economy plagued by deflation and a jobless rate estimated at 95% by the National Association of Non-Governmental Organisations.

Zimbabweans living abroad are expected to send home $2 billion this year, up from $1.8 billion last year, central bank Governor John Mangudya said Aug. 29.

Remittances equated to about 13% of gross domestic product in 2014, outstripping all export income besides minerals, which the Chamber of Mines says earned the country $1.85 billion. An increased use of electronic money transfers is being driven by the proliferation of smartphones and Internet access.

”A substantial percentage of the population would be severely constrained without remittances,” John Robertson, an independent economist based in Harare, said by phone. “The irony is that people driven to greener pastures outside the country are the same people, to a significant extent, who keep ordinary Zimbabweans going within the country.”

While the central bank recorded remittances of $3.5 billion entering Zimbabwe between 2009 and 2014, its data excludes undeclared payouts brought in by so-called runners—minibus taxi drivers who ply routes between South Africa and Zimbabwe. Based on a trust system, Zimbabwean migrants hand over cash to be delivered to relatives back home.

The runners, who also ferry groceries, kitchen appliances and other goods, charge fees of between one percent and 10%, and haggling is standard practice, Nixon Moyo, who operates the route between Johannesburg and Harare, said in an interview.

While the money-transfer market has long been dominated by Englewood, Colorado-based Western Union Co., Dallas, Texas-based MoneyGram International Inc. and London- based Mukuru.com, the market is opening up.

New entrants include Econet Wireless Zimbabwe Ltd., the nation’s largest mobile-phone operator, which in partnership with U.K.-based transfer service WorldRemit Ltd., is offering a service that enables Zimbabweans living abroad to send money home through Econet’s 13,000 agents.

Mama Money, a Cape Town-based money transfer company has about 10,000 regular customers who send money to Zimbabwe. It charges 5% commission, with all transactions taking place online or by mobile phone.

“New technology shouldn’t just make it easier, it should also make it much cheaper” to transfer cash, Mama Money spokesman Matt Coquillon said by phone. “The aim should be to bring down commission rates to as near zero as possible and we don’t see why that can’t happen.”

Sub-Saharan Africa is the world’s most expensive region to send money home, with average commission rates of 9.8% comparing with a global norm of 7.5%, according to the World Bank.

The increase in competition, falling costs and new technology are a boon for Goredema. 

”It’s much easier now because my son can send money by phone,” she said. “He doesn’t even need to go into a bank or post office like in the old days and I can get my money on my phone which also makes life easier.”

Source: Mail and Guardian Africa

Time: 18:00 GMT

Date: 19/11/2015

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Banks charges over 7 percent to transfer money internationally

The report by FXCompared.com begins a regular monthly index measuring the effective cost of shifting money through both banks and the money transfer companies that have begun to put pressure on a business previously regarded as a big cash cow for lenders.

The index measures the cost - including fees and the spread to the central market rate at which banks trade currencies with each other - for a range of transaction values and currencies. Those are gathered by shopping expeditions at dozens of Canadian, U.S., Australian and UK banks and brokers.

The new generation of web-based transfer firms have poured cash into advertising highlighting the profit banks take when moving money between accounts in different jurisdictions or currencies.

The results of the study show banks charge three or four times more than such providers for transactions worth the equivalent of 1,000 pounds sterling. The charge drops to less than three times for transactions over 10,000 pounds.

Costs in Canada are noticeably lower than in the United States, where capital and regulatory barriers have made it harder for broker-style operations like Transfer wise or World First to break through.

In the summer holiday months, costs at UK banks were also a quarter less than the U.S. equivalents.

"With all of these fintech-style operations out there, there has been pressure coming to bear on the banks," said FXCompared Chief Executive Daniel Webber. "The UK is the place where the banks have taken the biggest bashing on this issue.

"But we would also stress that the difference does come down the further out the curve one goes on transaction values."

Source : The Fiscal Times

Time: 17:42 GMT

Date: 19/11/2015

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Annual remittances for studies abroad near $500m mark

Over $300 million was sent as outward remittance in just five months (April-August 2015)

India, the world's largest remittance recipient, is also witnessing a sharp rise in outward flows linked to ‘studies abroad’ at a time the foreign education fad has picked up pace.

This is evident from that fact that over $300 million was sent as outward remittance in just five months (April-August 2015) for this purpose compared to $277 million that was sent in the full financial year (12 months) ended March 2015.

A slightly longer-term analysis of data provided by RBI shows that outward remittances for ‘studies abroad’ have actually gone up sharply. For a 12-month period starting September 2014 and ending August 2015, such outward remittances amounted to $492.5 million.

In the same period a year before, outward remittances stood at a paltry $180.7 million. This represents a 172 per cent massive jump in such outflows.

Beside other factors, the penchant for American education is also boosting outward remittances for studies abroad. "Indian student enrollment in US institutes spiked by a massive 30 per cent over previous year leading to sudden increase in outward remittances for studies abroad. Despite this increase, outward remittance under studies abroad will not have any measurable impact on the rupee as it accounts for a small fraction of our balance of payments," said Abhishek Goenka, MD & CEO of forex advisor IFA GLOBAL.

With a large number of students opting for non-American education as well as rising living expenses, remittance firms are also handling large outflows.

For instance, in the first half of the financial year 2015, UAE Exchange handled outward remittances from India to the tune of Rs 544.53 crore for FCDD (foreign currency demand drafts) and Rs 563.91 crore for maintenance expenses of close relatives. This was 62 per cent more than what the organisation had handled as transfers during the same period in 2014.

Said Promoth Manghat, CEO, UAE Exchange "This hints at the renewed vigour of Indians to send money beyond the borders, which is triggered primarily by foreign education in UK, Australia, USA, New Zealand, Russia and the Philippines. Along with the growing tuition fees, the living expenses of these countries are also spiraling, impacting remittances."

A senior official at one of the top private sector banks said: “We have been seeing normal growth in outward remittance business. About 20-25 per cent growth is what we have witnessed. We haven’t seen any sharp jump although there is a spike just ahead of the academic calendar year abroad. Rupee depreciation can also be one of the factors for the jump. From 62 levels against dollar in April, the local currency had moved to about 66 at August end. This means you had to pay 6-7 per cent more in rupees for every dollar sent abroad at the end of August.”

The World Bank in a recent report has mentioned that the Indian government raised the permissible limit on outward remittances from $125,000 to $250,000 (with further allowances for education and medical expenses).

The limit under liberalised remittance scheme (LRS) for resident individuals was reduced to $75,000 from $200,000 in 2013 as a measure to curtail foreign exchange outflow and support the rupee. This limit was later hiked to $125,000.

Source: mydigitalfc

Web:    http://www.mydigitalfc.com/

Date:    17/11/2015

Time:   12:18 (GMT)

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Foreign money switch: the last word information to shifting cash overseas

Demand for services has exploded in the past few decades as Britons have an increasing number of reasons to exchange large sums of pounds into, mostly, dollars or euros.

This is because more people are buying and selling property abroad and need to move the deposit, or the proceeds. There’s also a need for regular sums to be transferred, which could be from a pension or savings moved to help pay bills or an overseas mortgage.

Because of increasing migration, be it from the UK to Australia or Florida or Poland to Britain, there’s also increased demand for smaller payments be made to families.

Here’s the catch. Transferring money between banks accounts in one country is easy, with payments made using a wide array of platforms – over the phone, from a desktop computer or on a smartphone. However, it is not quite as simple when it comes to transferring money overseas.

The alternative is an array of specialist brokers, which makes up the other 20pc of the market, Currencies Direct, Moneycorp, the Post Office, Hifx and the newer, no-frills operations such as Transferwise.

There are several factors involved that are worth thinking about before making the transfer. Fees and exchange rates need to be considered which are significantly different depending on what provider you choose to make your payment. Other things to consider are how much you need to transfer, how quickly you need the money to arrive and whether it is a one off payment or needs to be carried out regularly – all of these carry different costs and will affect how you decide to pay.

What do I need to make the transfer?

To make an overseas payment, you will need:

1.    Your bank details

2.    Recipient’s details – name, address, name and address of bank, country they hold the account in. You will also need their International Bank Account Number (IBAN) and Bank Identifier Code (BIC)

What fees are involved with the banks?

Typically, providers can charge a fee which is made clear. The fees differ depending on what country the payment is being made to (it can be more expensive outside Europe), how much money is being sent and how fast it needs to be received.

Bank 
Fee for European transfers 
Fee for rest of world transfers 
Natwest 
£10 
£22 
Halifax 
£9.50 
£9.50 
Barclays 
£25 
£40 
Nationwide 
£20 
£20 
HSBC 
£0 (if both sender and recipient have HSBC account), £4 if not* 
£0 (if both sender and recipient have HSBC account), £4 if not* 
Santander 
£25 
£25 
RBS 
£10 
£22 (£30 for express payments)

High street bank overseas payments charges

* Online payments

There’s also differences if you make payments online or in branch. For example, Lloyds charges £10 for payments of less than £5,000 and £17.50 on amounts above this if the transaction is made online. However, transfers made in branch or on the phone cost more – a £20 fee for payments below £5,000 and £35 on higher transfers.

In the same way, HSBC customers who make payments into an oversea HSBC account in branch must pay a £20 fee. To any other bank it costs £9 to countries in the EEA (European Economic Area – the EU plus a few other countries) and £30 to those outside.

A less visible “fee” will also apply which is connected to the exchange rate. Not every service offers the same exchange rate, which changes by the second. This marked-up rate often goes unpublished which means it is often referred to as a “hidden fee”.

Your bank should tell you the exchange rate when it is asked, but unless customers ring up every provider for a quote, it is difficult to compare which one is offering the best rate.

Andrew Hagger of MoneyComms says customers tend to look to their bank first as they assume all charge similar amounts. However, this is not the case and Hagger suggests the system is akin to that of an overdraft in that “the tariffs are all different and the customer is bamboozled with rate and fee combinations and doesn’t know which service to choose”.

Hagger added: “I think the key message is to use a specialist foreign currency specialist and avoid the high street banks – it’s just one of many services that banks offer but it’s not their bread and butter and hence their prices are not competitive.”

There may also be a charge to receive the payment – the beneficiary will pay this unless you choose the “sender to pay all costs” option.

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How safe is currency exchange?

Deposits held in a bank or building society are protected under European law. They are bound to insure funds up to €100,000.

With other money transfer services, the rules are slightly different. They are not committed to hold deposits in the same way as banks – they are just transferring money which means they are not covered by EU regulation.

The companies may be “authorised” or “registered” by the Financial Conduct Authority (FCA), which are very different things.

An FCA “authorised” service means your funds cannot be “co-mingled” – they must be kept separate from the company’s money for two working days. At the end of this time, the cash must be safeguarded and held in a different bank account. This means that if the company goes bust, your money would be easy to untangle and you should get it back.

Companies that are FCA “registered” do not offer any protection.

You can check which companies are regulated on the FCA .

The list of major currency exchange services that ARE authorised includes: Moneycorp, Western Union, Transferwise, HiFX, Caxton FX, Halo, Currencies Direct and Moneygram.

Who provides an overseas money exchange transfer service

Whether you are wanting to transfer money abroad to a friend, or buy an overseas property, there are several companies who offer the service and it is worth speaking to a few before committing to the payment.

1.    Your bank – safe but uncompetitive rates
While it might be easiest option to use your bank to make the overseas payment, it may not be the best. The Money Advice Service suggests it is good for small, regular payments, however there are fees involved which could stack up.
One way to cut costs is to find out if your bank has an overseas branch, like HSBC.

2.    Specialist brokers – best for transfers over £5,000 but shop around 
For those planning on transferring large amounts – moving savings abroad or buying a property – it is worth tracking down the best exchange rate from a specialist broker. Exchange rates change daily, but with FX companies they are easy to compare. It is worth shopping around as even the smallest mark-up could make a large difference. Some of these firms, arguably, offer a more personal service. Customers sometimes get a personal account manager, for instance.

With large sums at stake, be sure you are dealing with an FCA authorised company. A firm that is simply registered will offer no protection. For those who are nervous, find out what your bank is offering and compare. However, Jason Porter, director of expat wealth planner Blevin Franks, says you’re unlikely to get a good rate as banks do not generate sufficient profit from large, one off payments.

3.    Online services – attractive rates but no face to face service
Low-cost, online services are less well known but can charge more competitive prices thanks to lower overheads. This is where you’re more likely to find companies that are only registered and not authorised.

Firms are likely to have transfer limits. For example, Transferwise allows transactions up to £1m whereas FairFx has a limit of £250,000. Regardless of the amount, make sure you establish if the service has the funds you need to transfer before going ahead.

Exchange rate contracts, orders and plans

A forward exchange contract (FEC) or simply, a “forward’ is designed to protect customers against fluctuating exchange rates. This could prove useful when making future payments, such as purchasing a new-build which could require stage payments for 12-18 months while the property is being finished.

The price paid for the currency is agreed on the day and then remains valid for up to two years.

To illustrate why customers might be wise to consider a forward exchange contract, the Financial Ombudsman had this to say: “We recently saw a case where a consumer had sent money in sterling for a house purchase in Australia.

“They didn’t opt to convert the money in advance and were subsequently horrified to find themselves £20,000 short when the money was converted. We didn’t uphold the complaint as the bank hadn’t made an error and had highlighted the options.”

For overseas transfers of more than £5,000 consider a specialist broker for better exchange rates than your bank can offer  Photo: (c) Vasiliki Varvaki

Blevin Franks’ Mr Porter also recommends looking at other options, depending on what you need to make the transfer for.

1.    Spot contract. This allows you to buy or sell currency ‘on-the-spot’ to be paid immediately or on the ‘spot date’, which is usually two business days later. It’s ideal for people who need to transfer money quickly, and enable you to buy foreign currency immediately.

2.    Stop loss order. This type of order allows you to protect your losses if the exchange rate works against you. Customers can set a limit of the minimum and maximum rate they require to make the transaction, which is useful for those who want to make a large transfer but with no time constraints.

3.    Regular payment plan. This plan is suitable for those making regular transfers, like paying an overseas mortgage or moving UK pension payments abroad. The exchange rate can be fixed for two years and is usually offered at a competitive rate. However, once you’ve agreed to the plan, you are locked in. Mr Porter suggests considering anything that might affect your monthly transactions, like mortgage payments.

Marianne Gilmore, director of Moneycorp, said: “There are more flexible alternatives available to expats who expect to see more advantageous rates in the near future, such as a ‘market watch’, ‘limit order’ or a ‘stop loss’, which allow you to exchange once rates reach a previously agreed level.

“However, it is worth noting that a market watch is not a firm order to buy or sell a currency. If the rate you have asked to be watched is reached outside trading hours, you may in fact miss the target rate you are looking out for, unless it is still available once normal next working day office hours resume.

“Limit orders and stop losses are firm orders and can form part of a strategy to target a best-case scenario rate of exchange (limit order), or worst case (stop loss) where you cannot afford for the rate to move any further away from a certain exchange rate. Both are excellent tools and are worthy of serious consideration; a) to potentially achieve an advantageous target rate that is not currently available; and b) to limit downside risk if the rates move adversely against a client. “

Source: The Standard Times

Website: http://www.salemstandard.com/

Date: 16/11/2015

Time: 18:15 GMT 

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How social media is reshaping global money transfer

Social media: Great for sharing pictures, messaging friends and following celebrities, plus, according to one fintech start-up, sending cash around the world.

Singapore-based Fastacash believes social media is the key to making international money transfers faster and cheaper.

The three-year-old start-up has launched a remittance app called XOPO, which allows users to make cross-border payments via social networking websites including Facebook, Twitter and WeChat.

Fastacash claims its app is the first to allow users to send and receive money around the world via more than one social network.

"Everyone talks about the sharing economy but what people are not doing via these networks is sharing economics. They share videos and photos, but they are not sharing real economics such as money," Vince Tallent, chairman and chief executive of Fastacash, told CNBC in a phone interview.

"So we want to bring transaction capabilities to these communication networks. By making international transfers a social activity, not only are we disrupting how billions of dollars are moved across borders, for the first time people will be able to transact in the same way as they communicate, with no barriers and boundaries," he said.

At the moment, social media giant Facebook allows peer-to-peer (P2P) payments via its Messenger app for free, while China's dominant messaging app, WeChat, charges a fee of 0.1 percent for spending and transfers over 20,000 yuan ($3,141) per month between its users. However, both networking sites only allow payments to be made between users based in the same country.

In the case of XOPO, senders will need a debit card and a smart device. Once the app is downloaded onto the device, the sender can select a recipient to make payment to via any of the social media channels they are connected by. XOPO charges a flat fee of $4.52, regardless of the transaction size.

Recipients can receive money in their bank accounts or choose to collect them from the offices of Xpress Money, a global money transfer company which has partnered with Fastacash to provide the new service.

According to World Bank estimates, more than 90 percent of fund transfers are sent to family members, who are usually connected on social networking websites. This connection between senders and recipients gives social media with a huge potential to disrupt the remittances market, analysts say.

"In the U.S., social networks and messaging apps such as Snapchat and Facebook Messenger have been rolling out P2P payments but so far these have been limited to payments within the same country," Jack Kent, mobile director for IHS Technology, told CNBC via an e-mail interview.

"Given the scale of the international remittances market and the reach that social networks and messaging apps have, it makes sense for remittance companies to try to take advantage of such apps."

But the issue of security stood out as a major concern among consumers who spoke to CNBC.

"I use social media such as Facebook very often so the concept [sounds] convenient but I am not sure if I want to try because I am worried if my money can reach my family safely," said J.M. Caspillo, a healthcare worker from the Philippines who moved to Singapore three years ago. Caspillo sends home about 20,000 pesos ($425.31) a month via a remittance center.

IHS's Kent agreed. "Security can be a concern for all mobile financial services and is a challenger for international remittance. Partnering with the necessary financial institutions is vital," the London-based analyst said.

But Fastacash believes that its partnerships with well-established financial institutions such as Singapore's biggest bank, DBS, will help instill confidence in consumers. The fintech company previously collaborated with the Singapore lender on the bank's "DBS Paylah!" app. DBS Paylah! is a mobile wallet that allows fund transfers using a mobile phone number.

"Security is of utmost importance to us and the way we address that is we ensure partnerships with tier-1 brands such as DBS, ICICI Bank and Xpress Money. These partners have been moving money around the world for years and they are regulated by regulatory bodies. Having trusted payment brands like these is critically important for us," Tallent said.

For now, the XOPO app is only available in the U.K., where users have had the ability to send funds to countries including India, Nigeria, Pakistan and the Philippines since October 28.

According to Fastacash, the U.K. is the world's fourth-largest source of remittances, behind the U.S., Saudi Arabia and the United Arab Emirates with annual cash outflows estimated at over $25 billion.

In addition, the U.K.'s status as "one of the leading fintech hubs in the world" makes it an important market, Tallent said.

Fastacash aims to make the remittance app available in countries including the U.S., Canada and Australia. While the start-up declined to reveal a timeline for Asia, Tallent said the roll-out of the service in this part of the world, in particular China, was just "a question of time."

 Source: CNBC

Author: See Kit Tang

Web: http://www.cnbc.com/

Date: 13/11/2013

Time: 17:02 GMT

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Western Union Appoints Elizabeth G. Chambers Chief Strategy and Product Officer

The Western Union Company WU, -2.54% a leader in global payment services, today announced the appointment of Elizabeth G. Chambers to the newly-created role of Chief Strategy and Product Officer. Chambers will play an integral role in positioning Western Union to accelerate the realization of its strategic growth plan.

 She will facilitate the alignment of investment priorities across the organization and drive cross-functional synergies, as the company pursues its omni-channel strategy to enhance and grow its consumer retail, digital and B2B businesses. “We are thrilled that Elizabeth will be assuming leadership of this important role within our organization,” said Western Union President and Chief Executive Officer Hikmet Ersek. “She brings an excellent track record of omni-channel development and brand transformation to the Western Union team. Her expertise in developing market-leading products and partnerships will be critical as we execute on our strategic vision.” Chambers will report to Ersek. Chambers has 30 years of business experience that spans financial and professional services, corporate strategy and marketing in a global, multi-business context, as well as start-ups and turnarounds.

 Most recently, she has been a board director and advisor to financial institutions, and served as Chief Marketing and Business Development Officer at Freshfields Bruckhaus Deringer, the international law firm. Prior to that position, she held a range of senior marketing roles at Barclays plc, including as Chief Marketing Officer of retail and commercial banking and Barclaycard. Her tenure at Barclays was marked by a string of market-leading product innovations and partnerships, as well as digital channel development and brand transformation. Before joining Barclays, Chambers held C-suite level strategy, marketing and new business development roles at Bank of America, the Reader’s Digest Association and Bingham McCutchen. Earlier in her career, Chambers was a Partner in the Financial Institutions and Organization practices at McKinsey & Company. While at McKinsey, Chambers co-authored the “War for Talent” study, published in Fast Company, the Harvard Business Review and several other publications, including the McKinsey Quarterly. “Western Union is well positioned to transform the money transfer and payments experience for its global consumers and business customers, and I am excited to help them advance their client focused-strategies,” said Chambers.

 “I am attracted to the Western Union brand because of its world-class infrastructure, geographic reach and risk management capabilities, and its commitment to innovative application of technology to deliver faster, more effective ways of moving money across borders. I am confident that Western Union’s outstanding brand, technical backbone, and customer understanding will be the keys to delivering industry-leading products and accelerating growth.”

 About Western Union The Western Union Company WU, -2.54% is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders. As of September 30, 2015, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of over 500,000 agent locations in 200 countries and territories and over 100,000 ATMs and kiosks, and included the capability to send money to hundreds of millions of accounts. In 2014, The Western Union Company completed 255 million consumer-to-consumer transactions worldwide, moving $85 billion of principal between consumers, and 484 million business payments.
 For more information, visit www.WesternUnion.com

Source: Market Watch
Web: http://www.marketwatch.com/
Date: 13/11/2015
Time: 09:19 GMT

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