CUT YOUR REMITTANCE COSTS TO BOOST SAVINGS THIS YEAR

Whether you're sending money home, paying overseas school fees, or receiving rent from property abroad, chances are you're using remittance services more than ever. But are you paying too much in the process?

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As the demand for faster and cheaper global money transfers rises, so do the options - particularly outside traditional banks. Yet many users, especially in the UAE, still rely on banks without realising how costly that can be.

“Banks remain the most expensive remittance providers globally,” said Matt Simeon, a UAE-based forex analyst. “The average cost of sending $200 (Dh735) via banks rose to nearly 14 per cent in 2024, up from 11.5 per cent a year earlier, according to the World Bank.”

By contrast, money exchange houses charge around 5.4 per cent, while mobile remittance apps are as low as 2.8 per cent — making digital channels significantly more affordable.

Yet despite the savings, mobile apps account for less than 1 per cent of global remittance volumes, mostly because users still trust banks more. But the trade-off is high transaction costs and often poor exchange rates.

WHY DIGITAL IS CHEAPER (AND GAINING GROUND)

The World Bank's latest data confirms what many already suspect: digital remittances are the future. On average, digital transfers cost 5 per cent, compared to 7.3 per cent for non-digital methods. While banks have made improvements, they remain well above the UN's 2030 target of 3 per cent.