Money transfers are almost becoming daily, whether from one account to another by the same user or from one user to another. There are several methods to move money across accounts. Each way is unique in its benefits and challenges. So, what is the most efficient way to transfer money from one account to another? Let’s consider the available options and see which one is the most efficient.
1. Mobile app
The advent of the app in the banking industry has revolutionized the whole banking experience. You can send and receive money from the comfort of your home or car without setting foot in the banking hall.
The bank might need you to physically present yourself in the facility during the initial stages of app registration. This in-person is for verification and security procedure. But once you have done the verification of identity, everything else is done online through the app.
The app gives the user limitless possibilities far beyond transactional needs. For example, it provides tools to monitor expenditure, updates on forex exchange and market, among other things; besides, the transaction is fast and secure and is recorded digitally should anything go wrong.
The user needs to enter the account number, including the transactional fee, and a pin or code to allow the transfer. This process is fast and can be done in a matter of seconds or minutes.
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2. Wire transfer
The wire transfer works on the same principle as the app transfer above. The slight difference is that wire transfer is web-based. So, for example, one can transfer money from one bank to another online.
The most outstanding future that sets wire transfer apart from a mobile app is the scope of coverage. You can wire the money globally, unlike apps that are limited to a location. Yet, the need for verification is similar to the one above. for international transactions, and you will need a swift code and Identification card or number.
The turnaround time is not as fast as for the app. The cash sent might take hours or even days to be approved.
Although this method is not very popular, it is still preferred by some individuals and institutions. The user needs to fill a Cheque leaf and drop it in a bank. However, the invention of mobile cheque accounts has reduced the need for a physical drop to the bank. The mobile cheque works on the basic principle of the app and wire transfer.
It is worth noting that this might not be a great option for emergency transfer as cheques can take days or even weeks in some cases to process.
You can manually withdraw cash from ATM and deposit it into the required account. However, this process requires physical presence in the banking facility. The other option is giving cash to a teller and the account details for the receiver, and the teller will deposit it on your behalf. However, cash deposits and withdrawals are cumbersome and time-consuming. There is also the risk of losing the cash, error in counting, or extreme cases, being robbed.
Which then is the most efficient way of transfer?
The answer to this will depend on your preference and the nature of the transfer. For example, wire transfer is ideal for international transactions than app cause of the scope. The app can be integrated with third-party services https://djangostars.com/industries/fintech/digital-banking-solutions/ that facilitate international transfer as well.
The is costs involved in almost all the methods above. But the cash option seems cheapest as most banks do not charge for depositing. Yet, this is the riskiest option in terms of security.
The mobile app is the most efficient way to sending money across accounts. The app is because it is secure and convenient as you might not need internet access to undertake the transfer. Besides, the app can be integrated with third-party services such as PayPal to cover the international transfer. In addition to that, the app transfer is instant, and almost everybody in the world has their mobile phones and will get a quick notification, unlike wire transfer that might need email and internet to get notified. Therefore, the app is best in terms of turnaround time, security and efficiency.