When it comes to studies abroad, 2017 data reveals that more than 50 percent of Indian students study in North America. As per Government of India data, there are a total of 5.53 lakh Indian students studying across 86 countries.
Transferring money abroad for education is a billion-dollar market, because it is well known that for expenses related to education (studies abroad) are substantial. Total fee (study-related) outflow from India in 2017 stood at USD 2.045 billion, as per the data from the Reserve Bank of India (RBI).
Part of the problem on fee remittances for parents comes from a lack of transparency.
Here are the key reasons for the same:
1. Many universities do not want the cost of tuition to deter applicants, meaning this information can sometimes be overlooked or omitted until later in the application process.
2. Once admission is procured, parents rush to pay fees- and discover that traditional cross-border money transfers via banks and money transfer operators (MTOs) are plagued with high transfer fees, hidden charges, extended delays and lack of transparency. At this time, the parents are quite helpless and go through with it anyway.
3. Traditional money transfer service providers typically maintain brick-and-mortar set-ups, adding to their costs that are eventually passed on to students/parents. The money transfer providers, and other agents profit off the current system and decreasing the value of students' tuition payments.
4. Many banks and MTOs also impose a margin on the exchange rate of international fund transfers, with some global banks charging 5 percent, which means that a $10,000 transfer will entail a transfer fee of USD 500. Some non-bank money transfer service providers like Western Union are known have mark-up rates of up to 10 percent, which means losing US$1,000 on the transfer of USD 10,000.
Overall, the traditional way of paying for tuition fees overseas can leave families with a rude shock.
InstaReM now offers a new possibility-a unique Zero-Margin FX proposition, superior platform and exceptional customer service.
"InstaReM offers bank-to-bank money transfers at zero-margin FX rates using the rates sourced directly from Reuters. As a "digital-only" platform, we eliminate inefficiencies of the traditional money transfers and pass on savings to end-users. InstaReM also bypasses the SWIFT, which not only makes it more cost-effective but also speedier. It is focused on offering extremely competitive costs, transparency, speed and a great customer experience," added Prajit Nanu.
With its compelling value proposition, InstaReM looks to capture a substantial market share of outbound money transfers from India in this arena.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)