Articles/Columns
The Remittance Business in Japan is a High-Margin Service Stuck in a Paper World
As reported by The Economist last week, Japan is the most expensive place to remit money to India or China. By comparison, sending money to India or China from the U.S. or the UK is much cheaper. For Japanese MNCs (multinational corporations) with operations in the U.S. or the UK, transferring some of the profit margins as remittances to India or China from these overseas offices may be more cost-effective than remitting from their headquarters in Japan. Nevertheless, the advent of internet banking and global connectedness will support new paper-free service capabilities from emerging players that will offer quicker and cheaper remittance services, which will over time become more mainstream practices, especially if there is money to be saved. Hence, the main financial institutions that currently handle the bulk of remittance services on behalf of their Japanese clients will need to adjust to shifting market trends or develop partnerships with globally-capable service companies to continue providing remittance services to their clients, albeit at cheaper rates. Otherwise, their game is up, and smarter companies, especially those operating in a shrinking market, will have no choice but to use more cost-effective remittance services to support their operations in overseas markets.
Cost Comparison of Remitting $200 to India and China
Source: The Economist
（2011/12/16 掲載）