Money transfers is a huge industry, with millions of us in the UK alone sending money overseas every year. Convenience, exchange rates and hidden fees are all part of the consideration when deciding who to send with. But according to our latest study, over 17 million Brits have little choice in what provider they use.
In other words? That’s 41.5% of those who do send money overseas choosing their provider based on what’s best for the person receiving it.
What are these considerations?
- Branches that offer cash pickup
- The ability to transfer directly into their bank account
- The fastest method
- The access to customer support
- Hours of operation
Let’s go deeper
The remaining 58.5% of those using money transfer services choose their provider based on suiting themselves. This could be for the most cost effective method or the ease of use. Men are more likely to send money overseas at 41.2%, compared to only 29.3% of women. They also tend to be more considerate, with 42.9% of men choosing the provider based on the needs of the sender (with women at 39.5%).
Millennials are also most likely to be transferring money overseas, with 58.8% of all millennials saying they do. This is followed by 37.2% of Gen X and only 22.6% of Baby Boomers.
Those living in the East Midlands are the most selfless senders, with more than half (58.3%) choosing a provider based on what’s best for the person receiving the funds. Londoners followed (51.8%), followed by those residing in the North West (44.0%).
Why do we send money overseas?
The most common reason why people send money overseas is to support their family (41.2%). This was followed by sending money as a gift (37.8%), for a holiday (23.7%), an emergency (20.3%), transferring funds to their own foreign accounts (16.9%), business (13.5%) and for a wedding (9.5%). Check out here where the UK sends the most money in the form of remittances.
By the demographics
Women are more likely to transfer money overseas to their families than men (42.2% compared to 40.5%). Twice as many men (17.6%) are sending money overseas for business than women (7.8%).
Millennials are the most likely to be sending money to their families by a wide margin, at 50.7%. Gen X followed at 37.8%, then Baby Boomers (35.3%). Gen X are the most likely to be sending money not only for gifts (41.8%), but for business as well (15.1%).
The remittance industry is unique due to its multi-market nature – for the over one in three Brits using international money transfers, choices are endless. However, if you’re one of the 41.5% sending on the needs of the recipient, options start to become more limited.
Improvements need to be made at both ends to improve the range of options for Brits. There’s no point in money transfer providers improving their options and services within the UK when the receiver of the transfer is limited to how they accept the funds.