Money Transferring Services Industry Trends (2017-2022) in the UK.

From 2017 to 2022, the UK's money transferring services industry saw a surge in digital transactions, driven by fintech innovations and increased online banking. This period marked a shift from traditional methods to mobile and app-based platforms, with a focus on speed, security, and accessibility, catering to a diverse, global customer base.

The Money Transferring Services in the UK experienced significant trends and transformations from 2017 to 2022, with notable changes continuing into 2024. These developments are crucial for understanding the industry’s trajectory and assessing investment opportunities.

  1. Global Remittance Growth: International money transfers have been crucial in the global economy, with remittances to low- and middle-income countries reaching $630 billion in 2022. Global inward remittances amounted to over $773 billion in 2021, with money sent home by migrant workers rising to $794 billion in 2022​​.
  2. Shift from Cash to Digital: There has been a notable shift from cash to digital and from informal to formal channels in money transfers. The pandemic accelerated this trend, with a significant portion of banking customers shifting from physical to digital platforms​​​​.
  3. Technological Innovations: The integration of technology like blockchain, artificial intelligence, and mobile money services has reshaped the industry. These technologies have made remittances more accessible, secure, efficient, and cost-effective​​​​.
  4. Open Banking Influence: Open Banking has been increasingly utilized, enhancing the customer experience by making transactions more seamless, transparent, and efficient​​.
  5. Diversification of Services: Companies in adjacent sectors, such as telecoms, are diversifying into money transfers, leading to new alliances and innovations in the industry​​.

Money Transferring Services Industry Trends (2017-2022) in the UK.

Performance Projection for 2024

Looking forward to 2024, the Money Transferring Services in the UK are expected to continue evolving, influenced by these trends:

  1. Continued Growth: The UK’s Remittance Market is projected to reach USD 66.5 billion by 2027, growing at a CAGR of 6.06%. This growth is driven by the continued shift from cash to digital, the rise in cross-border transactions, and technological innovations​​.
  2. Expansion of Digital and Mobile-based Services: The demand for mobile-based payment and internet banking channels is expected to increase, further reducing remittance costs and transfer times​​.
  3. Technological Advancements: Continued integration of blockchain and other digital technologies will likely enhance the efficiency and security of cross-border payments​​.
  4. Opportunities in External Financing: The remittance market’s growing significance as a source of external financing presents opportunities for market players​​.
  5. Evolution of Digital Wallets: Mobile wallets are expected to offer more diverse services, moving towards becoming universal mobile bank accounts​​.

Market Size of the Industry

The UK’s Remittance Market was valued at USD 49.55 billion in 2022 and is expected to grow significantly, reaching around USD 66.5 billion by 2027​​.

Analysis of Major Players

The major players in this industry are likely those who have adapted to digital trends and technological innovations, such as companies offering digital remittance platforms like TransferWise, Remitly, and Revolut.

Product and Service Trends

  • Digital Platforms: Emphasis on online services that offer lower transfer costs and faster transactions.
  • Mobile Money Services: Increased popularity, especially in areas with limited banking infrastructure.
  • Blockchain Technology: For more secure and efficient cross-border transfers.

Industry Outlook (2022-2027)

The industry is expected to continue growing, driven by technological advancements, the shift to digital and mobile platforms, and the expanding role of money transfers in global finance. The focus will likely be on enhancing customer experiences, reducing costs, and increasing the speed and security of transactions.