How Money Transfer Business is Affected by COVID-19
The COVID-19 pandemic has caused huge economic losses that left many businesses, including money transfer, in danger. In this article, we will talk about the most notable negative effects/impacts of Coronavirus pandemic and how to overcome them.
That has threatened many companies, including money transfer, banks, tourism, etc.
How Money Transfer Business is Operated
The stability of the market directly affects the movement of money transfers and exchange rates both locally and internationally. Money transfer businesses depend on the stability of the exchange rate, allowing customers a greater amount of transfer options. Hence, exchange companies compete with each other to offer more advantages to customers from competitive exchange rates to various financial services.
There are ‘three pillars’ that are of high importance to every client and exchange company: safety, speed and fees. Exchange companies provide their clients with safe money transfers in minutes with the most convenient fees for clients.
This means that cross-border financial transactions have become available to small companies and investors, and with the multiplicity of money transfer options, it has become more common to resort to exchange houses.
COVID-19 Impact on Customers & Business
After the spread of Coronavirus pandemic worldwide, a great part of the money transfer business has been affected. This pandemic has caused an increase in the demand for financial, digital solutions, meaning that money transfer companies may get an opportunity to increase the base of their customers. But at the same time, it witnessed an unprecedented decline in the volume of its transactions due to the lockdown that some countries have applied and the partial closure of borders and the disruption in international travel.
Exchange institutions contribute to taking measures that aim at providing various facilities for customers allowing them to transfer money faster, and with more options such as the feature of immediate receipt, or receiving transfers online from companies or banks.
On the other hand, one of the challenges of COVID 19 pandemic is to digitize services offered by institutions. Many businesses worked around the clock to accelerate the transition of services from face-to-face to digital. While some companies succeeded at that, others are in the process of digitizing and offering quick services for customers. The pandemic has given companies the opportunity to think out of the box and become innovative in their business solutions.
Ways to Reduce the Damage
Many entrepreneurs and CEOs are taking several measures to reduce the effect of the pandemic on their business, including minimizing unnecessary costs, cancelling unnecessary events or additional expenses, and creating new business policies that rely on the distancing of workers and employees in the workplace to avoid the spread of the infection.
Some measurements can be taken to prevent the collapse of an enterprise or a commercial company; however, there is no single solution that suits all organizations. The following are important strategies for commercial and economic entities to avoid the negative effects of the coronavirus pandemic.
Reviewing Financial Policies
The success of a company in overcoming the effects of the coronavirus depends on its ability to address any current financial troubles with careful study of the market and setting monthly expectations to assess possible risks in order to take decisions to reduce expenditures and set priorities without harming the business interest.
Many small and medium-sized companies can resort to borrowing with low interest, and they can sometimes repay loans over long periods. Many countries have launched initiatives to finance those loans to companies.
Consulting Professional Experts
The global financial crisis in 2008 resulted in a strong focus on the field of financial consultancy in the science and art of managing giant financial crises - which created a new generation of experts who experienced a crisis similar to the current one. Hence, financial specialists should be consulted to help manage financial risks and reach the lowest possible rate of losses.