When there is a need to send money quickly to a recipient, whether a family member or a close friend or to send payment for a purchase in another location or any other emergency money dealing, a bank wire transfer is the best option. There are many reasons why it is popular – quick, reliable and extremely safe.
In the US for instance, it is virtually impossible for someone to make a wire transfer without having a bank account. The sender and receiver should both have bank accounts which can only be opened after thorough verification of documents to establish identities.
Financial irregularities involving bank wire transfers are extremely rare if the sender and receiver are known to each other or have some prior interaction before the transaction is carried out. However, every request for wire transfer of funds especially for purchase of goods or payment for a service has to be verified thoroughly; if it indeed is some kind of scam, the money sent can almost never be recovered. It is almost impossible for the sender to pull the funds back after the transaction has been set in motion.
Wire transfers through banks are fast. Because of the pre-set factors established in wire transferring funds, the funds can be cleared immediately on receipt, which is to say that the recipient can avail the funds within the space of one business day.
The system of bank wire transfer is extremely reliable as it is used for large monetary transactions; as such, there are several checks in place to ensure that disasters are kept at bay.
It is estimated that nearly 2.5 billion around the world do not possess a bank account. But interestingly most own a mobile phone. This aspect is fuelling a global action to turn these mobile phones into bank account books for those without accounts to help store cash, send and receive money, make online purchases, manage their personal accounts etc; the term that is being used to denote this trend is referred to as ‘financial inclusion’.
The association of mobile phone companies estimates that mobile money is seeing voluminous growth at an astonishing rate. In sub-Saharan Africa alone fees generated through mobile money transfers could touch $1.5 billion by the end of this decade. However, banks and financial consultants are reacting and treading cautiously to the news as they opine that most people with mobile money accounts rarely use them actively. While the volume of money flowing from operating these mobiles through phone networks is cause to feel positive, average transactions through mobile bank accounts amount to a few dollars at most.