Millions of consumers around the world transfer money to their friends and relatives abroad. The World Bank estimates that a total of USD483 billion was sent in 2011.
Many communities in developing countries rely on remittances sent home by migrant workers to meet basic needs. But average charges for this relatively simple transaction are unreasonably high, often 10 or 20%.
CI’s new report, The Remittances Game of Chance: playing with loaded dice? explores the background to these issues and set outs the case for bringing down costs through promoting effective competition in money-transfer markets.
Read and/or download the full report.
Read and/or download the executive summary.
Consumers face three key obstacles in relation to global money transfers: a lack of real choice, opaque pricing and a lack of accessible information. Our report has indentified a number of specific policy solutions to address these issues, focussed around the following areas:
- Transparent pricing to enable consumers shop around for the best deal
- Promoting competition in the market to ensure real choice for consumers
- Empowering consumers with the skills and information to make informed choices
- Supporting financial inclusion for consumers who send or receive remittances.
On 15 March 2012, consumer organisations around the world will highlight World Consumer Rights Day by calling for real choice in financial services. Money-transfer markets are a prime example of how a lack of competition can have serious impact on consumers.
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