Business is all about making money, and that includes the business of transferring money. Money transfer companies (MTCs) or international remittances companies provide multiple options for customers (individuals and companies) to remit income and other expenses nationally and internationally.
MTCs provide online and offline payment solutions. Offline solutions refer to physical stores located across cities internationally. Using these stores, customers can provide physical cash and request their delivery in another currency to a store closest to the recipient. Offline stores are the most traditional options for overseas money transfer. Such stores are generally located in most cities across the world, especially in airports. Online payment solutions include online money transfer options such as bank transfer, credit/debit card, sofort, ACH direct debit, etc. This is an easier and more convenient alternative for customers who are savvy with internet banking options.
So, how do such businesses make their money?
Foreign exchange companies make their money from the charges levied on each transaction. Transfer fees represent a bulk of a money transfer company’s profits, and charging such fees allows them to increase their bottom line.
The transfer fees are determined based on several important money transfer parameters, the primary ones being transfer amount, transfer speed, and transfer rate.
- Transfer account – The amount of money transferred in a single transaction
- Transfer speed – The time taken in seconds, hours, or days, for the money to reach the recipient.
- Transfer rate – The exchange rate for the selected send and receive currencies
Competitors across the money transfer space function within the same parameters, thus making it tricky to stand out. Some businesses are focusing more on offline stores while some others are directing their efforts into advanced online payment solutions. Irrespective of such business plans, every money transfer company can utilize competitor intelligence to optimize its parameters and increase revenue.
Competitor Intelligence and its advantages
Investopedia defines competitor intelligence as the ability to gather, analyze, and use information collected on competitors, customers, and other market factors that contribute to a business’s competitive advantage.
In the money transfer space, access to competitor intelligence such as their transfer fees levied for selected send amounts, payment options, and delivery speed can be analyzed to understand where such businesses are profiting. Using such numbers, you can optimize your offerings, thus improving customer satisfaction and increasing your bottom line.
Competitor intelligence in the form of pricing datasets allows you to track your competition, study competitor reaction to pricing changes, and explore untapped markets. It also helps you understand which aspect of your business operations needs to be improved to stay on top of the foreign exchange game!
Uses of competitor intelligence
Some of the popular use cases include:
- Identifying competitors that offer the best deals to their customers
- Fees charged by competitors across all currency corridors
- The total premium charged by each competitor on all currency pairs
- Time to disbursement vs premium charged
Bridged offers competitor intelligence solutions to money transfer companies looking to conquer the forex market. Click here to access our free pricing datasets, and let’s figure out a solution that gets you to the top!