News
Exposed: why consumers are losing out in the $483 billion money transfer market
11 Jan 2012
A new report by Consumers International aims to shed light on
the complex issue of international remittances - a system that is
costing consumers up to 20% of the money they send in charges.
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.
Consumers face three key obstacles in relation to
global money transfers: a lack of real choice, opaque pricing
and a lack of accessible information. The report has indentified a
number of specific policy solutions to address these issues,
focussed around the following areas:
- Transparent pricing to enable consumers to
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, consumer organisations around the world will
highlight World Consumer Rights
Day 2012 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.
The global consumer movement promotes consumer rights on 15 March every year. See the action near you.
Go to WCRD 2012