Your bank vs. global money transfer apps: Which gives a better deal?

Choosing between your bank and a global money transfer app can mean you send more or less to your family on each $300 transfer. Even a small difference can add up if you regularly support loved ones abroad.

International money transfer apps aren't just about convenience. It's about ensuring more of your money reaches the people who depend on you. Let's uncover which option truly gives you the better deal when sending money across borders.

Reasons people compare traditional banks and apps

Money transfer apps often provide lower costs and favorable rates compared to many traditional banks. When you’re sending money regularly, these savings can really add up.

Banks often charge high wire transfer fees and use unfavorable exchange rates. Many money transfer apps focus on making transfers more affordable and convenient for people who send money regularly to loved ones.

5 key points to look at

1. Fees and exchange rates

Traditional banks typically charge wire transfer fees ranging from $15 to $50 per transaction. They also use exchange rates that are less favorable than market rates, which means less money reaches your recipient.

Cross-border money transfer apps usually offer low or no transfer fees in select countries, though currency exchange margins may still apply. Apps that excel at exchange rates can help more of your money reach family members who need it.

• Transfer fees: Banks charge fixed fees regardless of amount sent

• Exchange rate margins: Banks often add 3-4% markup on currency conversion

• Total cost: Apps typically cost significantly less for the same transfer

2. Transfer speed

Bank wire transfers often take 3-5 business days to reach international destinations. This delay can be stressful when your family needs emergency funds or has time-sensitive expenses.

Transfer money apps can process most transfers much faster, with many completing within minutes or hours depending on the destination country. Speed matters when you're sending money for school fees, medical bills, or daily expenses.

3. Accessibility and simplicity

Banks require you to visit a branch, fill out paperwork and wait in line during business hours.

This can be tough if you work during bank hours or can't easily get to a branch.

4. Security and regulation

Both banks and licensed money transfer apps operate under strict financial regulations. Banks have longer track records, but reputable money transfer app options employ robust encryption, identity verification and fraud protection systems.

Licensed services are authorized to transmit money across multiple countries and provide security measures you'd expect from traditional financial institutions. Look for apps, like Sendwave, that are properly regulated in your country and destination countries.

5. Transfer limits and specialized needs

Banks often have higher daily and monthly transfer limits, making them suitable for very large transactions. However, most people sending money to family don't need these high limits.

A bank transfer app usually has lower limits, but these work well for the regular, smaller amounts that people often send to family.

A side-by-side comparison of costs

A typical bank wire transfer to send $300 internationally might cost you $25 in fees plus an unfavorable exchange rate. The same transfer through a reliable money transfer app could cost just a few dollars with a more competitive rate.

Keep in mind that exact fees vary by destination country and transfer corridor. Some apps offer low or no transfer fees depending on where you're sending money.

Picking the right method for your situation

For smaller, frequent transfers to support family with monthly expenses, money transfer apps often offer a more cost-effective solution.

Consider these scenarios when choosing your transfer method:

• Monthly family support: Apps typically cost less for regular $100-500 transfers

• Emergency funds: Apps process transfers faster when family needs help quickly

• Large one-time transfers: Banks might be necessary for amounts over app limits

• Business payments: Banks may offer better documentation for tax purposes

More than a transaction - why support matters

A good money transfer app understands that international transfers aren't just financial transactions.

Some recognize that diaspora communities need more than just low fees. They need reliable service, helpful customer support and platforms designed specifically for cross-border lifestyles.

Services like Sendwave focus on making your experience smooth with features like digital wallets for added security and 24/7 support when you need help. This approach puts people first, not just transactions.

Where you go from here

Consider your specific needs when choosing between banks and money transfer apps for sending money internationally. Compare total costs including fees and exchange rates, think about transfer frequency, and evaluate convenience factors.

For most people sending money regularly to family abroad, a specialized money transfer app offers better value than traditional banks. A wire transfer app designed for diaspora communities can save you time and money while keeping you connected to loved ones.

Download the app to start sending money to your loved ones and experience the difference of a service built specifically for cross-border communities.