As the internet continues to take over the globe, the gap between countries is continuously abridged. The world is now closer than ever. Gone are the days when a message would take weeks or days before it reached the receiver, or an international phone call is an “expensive commodity”.

One of the biggest advantages of the consistent development of networks for connectivity is the ease of transferring money. Businesses and individuals can send and receive money almost instantly anywhere in the world. Now, two of the biggest channels for money transfer service transactions are banks and remittance centres. But which one is more suitable for you? Let us explore how these two are both different and alike in certain significant aspects to consider:

Requirements

Bank transactions usually require another bank to transfer funds. In order to open an account, it is prerequisite to provide a number of legal documents such as (but not limited to) recognised identification cards, passport, business permit (if necessary) and other relevant documents.

On the other hand, remittance centres only require a filled out form, and a valid ID card or two for the verification process. The lesser number of requirements is most likely the reason why money transfer service via remittance centres is seemingly more favored in third world countries.

Speed & Accessibility

Both banks and remittance centres are now accessible online. Most have websites and even mobile applications to offer painless transactions online. Through these, money can also be sent almost instantaneously to the receiver.

However, there are still certain types of transactions that may take hours or days to be delivered. For banks, there are clearing times and cut-offs, especially for cheque deposits and payments. On the other hand, securing cash sent from remittance centres may take a little longer if the mode to receive it is in-store pick up or delivery.

Exchange Rates

In terms of exchange rates, banks are usually lower in buying and higher in selling compared to most remittance centres. This can be due to the third-party transactions and lower overhead costs in remittance centres. 

However, most international enterprises still choose to transact through banks due to bank to bank convenience and security.

Security

Speaking of security, banks can guarantee superior security due to their investment in protection. Moreover, this is where the numerous requirements for opening an account, or any transaction come in. Only those who can present documents and verify their good standing will have the capability to make any operations in this institution.

Remittance centres are safeguarded facilities as well. But their security is more concentrated on moving the money from one point to another, from the sender until it reaches the receivers’ end. It is the responsibility of the sender to verify the identity of the receiver. So, it’s actually safer if you personally know the person whom you are sending your remittance to.

Banks can ensure the safekeeping of cash, while remittance centres can secure its way towards the receiver.

Both banks and remittance centres are important institutions in our world today. There are always pros and cons for each. But one thing is for sure – you can securely send and receive money anywhere in the world through both means. Just find out what is suitable for you.