Article at a glance:
The largely informal business of transferring money from immigrants in North America and Europe to their home countries is mostly accomplished through small neighborhood agents. Yet many immigrants, according to McKinsey research, are dissatisfied with the unreliability and sluggishness of this informal remittance network—and with the exorbitant fees agents charge. This discontent creates opportunities for banks and other financial players whose more sophisticated business models would benefit hard-pressed customers.
The take-away
Banks with branch networks abroad are particularly well placed to make the most of scale advantages, to introduce value-added products tailored to immigrants' needs, and to develop money-laundering controls that could put these institutions in a strong position to serve this $60 billion market.