Do Non-Bank Financial Services Offer The Same Security?


In an effort to lower interest rates and boost transaction security, many business owners are looking to secure Non-Bank financial institutions (NFBIs) to fund their business operations. However, since many non-bank services do not carry the same well-known reputations as large lending institutions, many owners are skeptical about the security the offer. With multiple NFBI lending options available, there are certainly varying levels of safety and security. However, with adequate research and understanding of the various options available, you can certainly find a financial institution with sufficient transactional security. In order to access this level of security, many owners have looked to international money transfer companies (MTCs) for financial services. If you are wondering if non-bank financial services offer the same security to your industry, continue reading this post.

The Money Transfer Industry

If you are prioritizing security in your search for a non-bank financial service, you may want to consider the money transfer industry. Money transfer companies, or MTCs allow for safe, inexpensive, and simple electronic payments. Most transfer companies utilize encrypted or PIN-protected technology in order to process transactions safely. They even allow you to conduct overseas transactions within a number of minutes. To guarantee their security, the Financial Conduct Authority (FCA) passes a number of restrictions on transfer companies. Other alternative lending institutions impose a number of risks on NFBI users. Consider the safety and security the money transfer industry offers businesses worldwide.

Meeting Regulations

Companies must meet regulations on fair pricing, time requirements on completing orders, follow protocol, and detect crimes. These numerous regulations restrict money transfer providers from mixing the client’s funds with theirs and limit the capital they can handle. Questionably the most important regulation is that money transfer companies must insure any transaction over $60 to protect sent investments. Secure money transfer companies are compliant in many GEOs and hence complying with multiple regulations. In order to conduct financial services through a “safe” money transfer company, look for one that is compliant with FCA protocol. If you are searching for NFBIs that offer financial security to your business, consider a money transfer company.

Consider Dedicated Dealer Status

You should attempt to find an international MTC that offers a dedicated dealer for your online transfers. Dedicated dealers are simply personal traders who directly handle transfer requirements for their clients. These dealers greatly boost the security surrounding transactions you send. With a personal dealer, you have an identifiable party responsible for any issues that occur in sending. Some dedicated dealers can provide you with further assistance and leading expertise for making future transfers. Being matched with one person to handle transfers contributes to exclusivity, simplicity, and most importantly, security. In order to access a dealer, most companies require minimum transfer amounts, or limit services to members holding paid subscriptions. If you qualify, dedicated dealers often offer the easiest way to send money overseas. If you are looking for the most secure MTCs to process international business transactions, look for companies offering dedicated dealers.

Evaluate Reputation To Ensure Safety

When you choose an international MTC, one of the most important steps is to evaluate the company reputation to ensure your transfer security. MTCs with a small number of users and mixed reviews are probably not the best option to handle valuable businesses transfers. Many popular transfer platforms host over 250,000 monthly users. At the same time, these incredibly popular platforms may hold an extremely high customer-satisfaction rate. While these large-corporations cannot provide the same personal approach that smaller MTCs do, they can certainly prioritize your transaction security. For businesses looking for a “safe” money transfer company, you must consider those with a strong user base and a strong reputation.

Ask About Fees On Foreign Currency

When you are searching for an MTC for online transfers, you need to ask about foreign currency rates and fees. This is especially important if you process international transactions. If you are converting currencies, many transfer companies impose exchange rate markups. These often vary, with higher margins being charged to transactions of lower value. Some agencies even impose flat rates of .5% to .75% whenever a foreign currency is exchanged for another. Before you process business transactions, it is integral to understand the exchange fees you will encounter. It may even be helpful to research foreign exchange tips to save money on frequent future transfers. Throughout your search for an international MTC, you need to consider the imposed fees on foreign currency exchange.

In order to improve overseas payments and processing, many businesses have sought the help of international MTCs. Transfer companies offer much more security than traditional NFBI lending institutions. As you look for the best MTC for secure payments, ensure you compare traditional transfer fees, as well as those on foreign currency. You need to consider if transfer companies provide you with a dedicated dealer to conduct business. Look for a company with a strong reputation that contributes to their security, as well as one that advertises quick cash conversions. Following the above criteria will help you identify the best ways to send money transfers online. If you are wondering if non-bank financial services offer the same security to your industry, continue reading this post.