Translation by Cem İnan Ünlü
With regard to international payments the most reliable
method is the SWIFT transfers through the correspondent bank. However, the wire
transfers conducted under the intermediary of correspondent bank are subject to
delays, even at times impeded by the operational control mechanisms of the
correspondent bank and sended back to the bank account. The most pressing point
of this matter is the high fees and their unpredictable nature. Due to the
processes that the money goes through in the correspondent bank’s control
mechanism, the money sender may incur additional costs expensed through the
wire transfer, leading to unforeseable costs unbeknownst to the sender. My
collegues handling these transactions especially working in customer
relationship management experienced such an instant at least once and struggled
through a transaction with a customer.
In addition to aforementioned issues, the lack of
transparency and accountability surrounding wire transfers erodes the quality
of customer experience. Likewise, the wire transfers conducted between two
countries take an intermediary by SWIFT and are priced more expensively than
EFTs. Considering my experiences while I was still actively pursuing banking
profession, such as valor losses of foreign currency time deposits during their
transference amongst banks, account summaries cumbersomely acquired from the
correspondent bank, the time deposit accounts that we tried open up after the
quitting time, I am one of the proponents of the conviction that this process
needs to become a simpler one.
Different Solutions, Alternatives
Fast processing, accessible and low cost adverseries with
international distribution channels such as Western Union, Paypal and Moneygram
serving individuals and local businesses challenge the banks and the SWIFT
system. Also, involving themselves solely through the digital platform, China’s
WeChat and the US’ Paypal Xoom services emerge in the market. Even more so,
declaring their partnership in 2015 Western Union and WeChat have been
bilaterally providing the services of money transfer to more than 200 countries
under the name of ‘’WU Connect’’.
For those who have not heard, WeChat initially came out in
China and expanded all around the world as instantenous messaging application.
As of June 2017, its membership number increased to 963 million monthly active
users, making a progress towards 1 billion users. WeChat, alongside its
messaging and voice calling attributes, also harbors the specialties such as
money exchanges between friends, money requests and low cost ‘’Red Envelope’’
atributes such as donations, gifts, treats and pocket money.
Where Are These Payments Going?
The main reasons for the increasing significance of international
payments are people’s migration to the developed countries, globalized work
force and rise in the number of refugees. According to World Bank’s statistics,
10% of 25 developed countries’ GDPs is transfered to the developing countries
by wire transfers. It is safe to say wire transfers taking place to a great
extent deliver funds to the family members and relatives.
Regarding refugees, the digital payment system called MONI
was developed in Finland to meet this community’s needs. Two years ago as a result
of Finnish government’s initiatives, according to the customer and document
diagnostic principles a digital payment platform was created for the refugees
who cannot open up bank account. MONI application, while it is based on
MasterCard’ prepayment card, it also harbors client’s financial and personal
information within Blockchain. Therefore, every refugee utilizing the digital
platform possesses a singular identity on the system. Hence, refugees not only
receive their salaries from their employeers and government but also pay their
bills and handle the money transfers amongst themselves.
Similar case exists for the Syrian refugees without
residency permit or declaration of a steady address, when they try to open up
bank accounts or engage in banking transactions. I hope that by extending
similar solutions all across the globe refugees’ transactions will also be
integrated into the financial system.
On the other hand, Blockchain solving every problem in the
system became the panacea of the financial system and I regard introduction of
a different solution as an overly positive development.
All aside, World Bank estimated that 90% of the relatives
exchanging funds has a social networking account. I also agree with this
estimation as I exchange money with my husband, mother and sister and we all
are very much acquainted with social networking sites; thus, this ratio is 100%
for my family.
Consumer Seeks For Confidence
According to BCG’s Global Payments 2015 report;
In 2014 global transactional banking revenues are reported
to be almost 1.1 trillion $ and this value is 27% of global banking revenues.
The value is estimated to rise to 2 trillion $ and revenues raised will be 34%
of global banking revenues.
In 2014 while the share of retail payments is 11% of global
payments, this year share of retail payments amongst the overall payments is
78%. Meaning that banks profitability margins for the retail payments are
overly high.
The document also reports a survey conducted within a pool
of 5500 consumers in France, Germany, England and the US. Despite a myriad of
changes taking place throughout the transition period towards digital payment
instruments, the reasons for people’s inclinations to stay on the traditional
are investigated. According to the research, the main causes turn out to be the
insufficiency of mechanism for the loyalty and reward system, reservations
regarding data privacy and security and limited acceptance area of digital
payment instruments.
Conclusion
As to international payments there are numerous methods,
applications, agencies, and intermediaries country-wide as well as globally.
The most exciting ones aforementioned are WeChat and MONI in
my opinion. WeChat appears to be an application on its way to serve a wide
customer base. As for MONI, it is a remarkable initiative that promises to
alleviate the refugee’s pressing financial problems and I am very certain that
it will be developed.
I may be regarded as a person holding obsolete ideas;
however, I believe conventional SWIFT
system through banks despite its disadvantages is still a reliable channel of
payment. I suppose having employed themselves with digital wire transfer and
payments by employment of fast fish Fintech, banks through their support and
cooperation will transmute the system into a securer and more reliable one. In
summary, nature will take its course.
Hiç yorum yok:
Yorum Gönder