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3 Tips to Transfer Money Across Borders Effectively & Efficiently

Updated 06 Sep 2021 – By Team Loanstreet


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As Malaysia undergoes its National Recovery Plan (NRP) with the relaxing of Standard Operating Procedures (SOP) for businesses and individuals who have completed 2 doses of vaccine, many may still be hesitant about face to face interactions. This includes conducting banking activities at physical branches. 

For a lot of people, it is increasingly important to have the ability to send money abroad quickly, cheaply and conveniently no matter where they are. In a survey conducted this year, Wise (formerly TransferWise) found that high costs and long wait times continue to be the top challenges faced by Malaysians when it comes to sending remittances. In fact, an independent report revealed that more than £150 billion  (RM 865 billion) are lost globally every year in hidden fees, which calls for an alternative way to move money across borders. 

To ensure that overseas money transfers can be fast, transparent, low-cost, convenient, and conducted safely, using technology-based services would be a good alternative. Here are some things you should pay attention to when sending money abroad.
 

1. Pay attention to costs and hidden fees



A whopping 50% of Malaysians find the high costs associated with remittances to be a challenge, pointing to a crucial need for cheaper, more transparent options. The conventional way of sending money abroad through traditional financial institutions typically involves high charges and hidden fees, and most people are unaware of the costs until after the transaction is completed due to a lack of transparency around fee structures. 

This is a problem that fintech companies like Wise are solving. By clearly displaying the total cost upfront, the fair, the mid-market exchange rate used and how much the recipient will receive there will be no nasty surprises and hidden fees. 

 

2. Look for services offering the mid-market exchange rate

When sending money in different currencies, most people are not aware that banks and other providers set their own unfriendly, marked-up exchange rates instead of using the fair, mid-market rate as seen on Google and Reuters. This means customers pay more than they should every time they send money abroad. 

One way to avoid this is to check the mid-market rate on Google and compare them with the service you’re using. To prevent losing money to unfavourable rates, choose the provider that offers the real rate. 

 

3. Speed of transfers



The speed of transfers is a key consideration for many consumers, with 61% of Malaysians saying it was an important factor when choosing an online remittance service. A good remittance service should be able to show how long it will take for the money to reach the recipient. Some remittances can take days for the money to arrive in the destination country, some can make sure the money arrives in minutes.

For example, with Wise’s money transfer service, over 38% of all transfers globally arrive instantly (within 20 seconds), thanks to the unique global banking network which allows Wise to send money around the world cheaper, faster and more conveniently. 

Lim Paik Wan, Country Manager of Wise Malaysia, said: “With Malaysians gradually resuming economic activities in an increased capacity, the need to send money abroad, whether it’s to help loved ones or to pay bills overseas, continues to be important. At Wise, we want to offer customers a service that is low-cost, instant, convenient and transparent to facilitate transactions while still staying safe amidst the country’s gradual economic recovery.” 


*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.


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