Remittances are an important part of Colombias economy, making up 2% of the countrys GDP in 2019 and helping Colombians living abroad support communities back home.
It was forecast that 2020 would be a record year for international money transfer but everything changed with the arrival of the Covid-19 pandemic.
As reported by the Pew Research Centre, the impact of Covid-19 meant that year-on-year money transfer fell sharply in April and May. However, with those living overseas doing everything they could to support their friends and family, the period between June and September has actually seen an increase in money transfer to Colombia, compared to the equivalent months in 2019.
How do you send money home?
As well as this increase in remittance, another pattern we are seeing is the fall in sending money via banks. Banks are no longer the number one choice for ex-pat Colombians when it comes to sending money home, according to a report by Eastern Eye.
Instead, people wanting to transfer money are increasingly relying on fast, efficient and cost-effective remittance companies like Small World.
Lets take a closer look at why banks have been replaced as the most popular way to send money to Colombia? What can the alternative offer you?
Why are banks no longer first choice for money transfer to Colombia?
There are several reasons why banks are no longer the most popular choice for sending money to Colombia, these include:
1. Cheaper options available: In terms of both exchange rates and transfer fees, banks are often more expensive and provide less value for money than what is offered by money transfer platforms.
2. More efficient: More people than ever are choosing to send money to Colombia online and the fast and efficient services offered by companies like Small World makes us a preferred option to the banks. And, remember, with Small World your beneficiary can be unbanked when you send money.
3. Customer service: With local branches and agents, money transfer companies are able to provide additional support for your friends and family in Colombia if they have any questions.
What are the best ways to send money to Colombia?
Bank Deposit: Send Colombian Pesos directly into a bank account in minutes. Money can be transferred online, through the Small World app, via a branch or over the phone with one of our call centre operators.
Mobile Wallet: The digital equivalent of a physical wallet and able to receive digital payments including money transfer to Colombia. You can learn more about this way of sending and receiving money in this blog on the Small World website.
Cash Pick-Up: For those people who dont have a bank account or prefer to pick-up their money in person, cash can be collected in person at over 2,587 Small World locations in Colombia.
Why transfer money with Small World?
We offer better exchange rates than the banks and are constantly checking them against our competitors to make sure we are always providing our customers value for money.
Your first digital transfer with us is also transfer-fee free, saving you even more money (especially if that first transfer is for a large amount).
We are an experienced and regulated company and handle over 1m transactions every month, this is why our 15m customers trust us.
With remittance continuing to play an important role in the Colombian economy but with banks no longer the number one choice, Small World are here to make money transfer work for you.
The different ways to send money to Colombia:
1. Cash Pick-Up
2. Bank Deposit
3. Mobile Wallet
4. Airtime Top-up
Our main partners in Colombia are: Bancolombia; Davivienda; Pagos Internacionales; BBVA; Banco de Bogota and Banco Agrario de Colombia.