26 Sep 2022
Do you know why expatriates still use banks as a medium to transfer funds and what are the different types of transfers? Before the advent of service providers in the international remittances industry, banks monopolised online money transfers around the globe. Undoubtedly, several people from every low-to-middle income country move to foreign lands seeking better earning opportunities.
They primarily used banks to send money home from abroad before the industry flooded with remittance transfer companies. For instance, over 90,000 Gambians, roughly 4.3% of the country’s total population, live and work abroad. These expats essentially send money to Gambia to help their families manage households and other needs.
Since the people of Gambia have been confronting back-breaking poverty for a long, they travel to other countries, preferably the West, to get better job opportunities. Despite the availability of some advanced and reliable remittance companies, still, a massive number of people trust banks for cross-border transactions. In this article, all those relying on bank transfers can find helpful information on various types of money transfers via banks.
First, It is better to look at the Gambian economy to put their travelling abroad into perspective.
Taking a look at these figures will reveal how weak the Gambian economy is and how its population suffers from growing poverty and travels outside to drop their anchors in unknown waters!
Since transferring money for different purposes is common these days, you need to know various methods you can use to transfer funds in banks.
Let’s take a look at all of these methods.
Although many ways are available to transfer funds internationally, most people prefer banks because of the trust these institutions have gained over the years, particularly concerning safety. Online money transfer companies, besides banks, primarily provide these methods.
Also, not all the methods banks offer to transfer money are fit for international money transfers. However, the study of all for making an informed decision is essential.
If you have an account in the same bank in which the recipient holds an account, it’s easy for you to send money to the other person. It will be fast and relatively economical. Even if the bank is internationally networked, a transaction between two accounts of the same bank will offer speed, efficiency and low cost compared to a transfer between two accounts of different banks. So, you can consider a money transfer to Gambia using the same bank as your beneficiaries have back home.
Banks also give the option to transfer funds from one bank’s account to another’s. These transfers are typically called ‘external transfers’. It has been made easy and convenient for banking customers due to the increasing networking and connectivity of different banks worldwide. In this transaction, you will need to have the routing number and the recipient's bank account number to transfer funds into their account. But, this method will take a long time and be cost-ineffective.
A wire transfer is one of the banks' basic methods to move money through. A wire transfer is initiated for a reasonably large amount of money, given that it moves faster and securely. But, despite the speed that is attributed to wire transfers, these take between three to five business days. Besides, wire transfers are cost-ineffective, and the fee involved depends on the banks and whether you are wiring money internationally or domestically.
It is an old and classic method to transfer money to a bank account. But it is still in vogue in many countries, particularly the developing ones. You authorise your bank to transfer money into another account or make payment to the bearer of the cheque when you write one. With new technology taking the lead, this method is taking the back seat as the movement of funds is sluggish and slow compared to other methods.
Based on Artificial Intelligence (AI), this method is quickly taking precedence over all other techniques. Many online money transfer companies, including ACE Money Transfer, have launched smartphone apps that allow users to transfer funds into their bank accounts. Even these apps help customers transfer funds to the recipient directly using the same app. These apps are primarily available both for the Android and iOS operating systems. They are easy to set up and user-friendly.
These apps allow you to initiate a transaction regardless of your location and whether you are static or on the move, so long as you have the app installed on your phone and access to a secure internet connection.
Peer-to-Peer Transfers, or (P2P) transfers as they are popularly known, are based on certain apps designed for the same purpose. Their famous examples include Venmo, PayPal and CashApp, etc. Remember that these apps have different and varying fee structures. Besides, transfers through these apps take separate time; there are limits on the amounts you can transfer into the bank accounts.
By now, you can transfer money into bank accounts using the different methods offered by the banks. Within these methods, you must see what way corresponds to your online money transfer needs in terms of fee, time and convenience before deciding. Most Gambian diasporas trust ACE Money Transfer whenever they need to make an instant online money transfer to Gambia with the lowest transfer fee, the best exchange rates, and the most secure transactions.
