3 Pains When Using Remittance Services
Remittances are more than just a way to send money abroad. They are also about building and maintaining relationships with family members who may not have access to other financial resources. However, using traditional remittance services can be time-consuming and complicated. This can create a number of pains and needs for both senders and receivers. Here are three common challenges that we have observed in our personal experiences with international remittances.
Unplanned requests and sender’s forgetfulness
Life can be unpredictable. It is not uncommon for both senders and receivers to forget about sending or receiving money until the last minute. This can create a sense of urgency and stress. Especially if the remittance money is needed for an important expense such as a medical bill or utility payment. In addition, financial organization can be a struggle for some families. Particularly if they do not have easy access to savings accounts or other financial resources.
Example
Karl’s younger sibling asked him to pay $20 for a gift for their father’s birthday. However, Karl thought he had already given them enough money and forgot about the request. With his busy schedule at work and other things on his mind, the task completely slipped his mind.
Remittance services prevent sending over $1,000
Many remittance services have limits on the amount of money that can be sent at one time. It is often capping it at $1,000 or less. This can be problematic if a family member needs to send a larger amount of money. It can be needed for a hospital bill, home renovation, or other significant expense. In these cases, the sender may be required to go through additional verification steps. Indeed, they can take time and add to the overall complexity of the process.
Example
Monica wanted to send her mom $1,200 to help pay for medical fees. However, due to ID verification requirements, she had to make two separate payments. Monica’s mom was unable to withdraw the funds herself, and in the case of this emergency, the process was inconvenient.
Money isn’t used for intended purposes
Sometimes, families will request a specific amount of money for a particular purpose. For instance, paying for an electricity bill or buying groceries. However, the money may not always be used for its intended purpose, leading to misunderstandings and strained relationships. For example, a family member may request money for a utility payment. Yet, they then use it for something else, leading to further requests for money down the road.
Example
Aisha sent her brother $40 to help with grocery shopping for their nana. Even so, instead of using the money for its intended purpose, he used it to buy video games. Aisha was disappointed and frustrated when she found out, as she had trusted her brother to use the money responsibly. She had to send him more money to cover the cost of the groceries. She made it clear that he needed to be more reliable and considerate in the future.
Finnt
To address remittance pains and needs, Finnt is building a banking app specifically designed for families around the world. The app will include features such as a chat function to keep in touch with family members and a view of account balances to ensure that loved ones never run out of money. With thorough authentication processes in place, users will also be able to send larger amounts of money without the need for additional verification. Finally, the app’s spending dashboard will allow senders to help manage their family members’ finances and keep track of expenses.
In conclusion, international remittances can be a valuable way for families to support one another, but they can also present a number of challenges. By addressing these pains and needs, Finnt is working to make the process of sending and receiving money easier and more efficient for families worldwide.
