Interesting Facts About People Who Send Money to Colombia By Andrea Beilinson At Isnare.com Ezine Articles

Over 1.5 billion money transfers occur worldwide every year, and the people who send money to Colombia are gaining worldwide attention because of their strong presence in the global economies. Colombia is the third largest recipient in Latin American and the Caribbean with over $4.5 billion transferred from the US. Moreover, the Inter-American Development Bank reports as much as 19% of remittance unreported due to informal corridors.

The migrant workers who send money to Colombia tend to be the most highly educated out of their family. The family left behind is typically less skilled than the migrant worker is. Therefore, the compensation may be the largest part of the family's income. The largest part of this diaspora in Colombia comes from low to middle class families in urban household.

Over 68% of the remittances go to basic consumption needs, but this figure is relatively low when compared to other countries that depend on remittances. Especially with an extremely high poverty level (49.2% reported by the CIA in 2007). The World Bank estimated that 90% of the income from families who receive remittance comes from the migrant worker.

The typical transfer is about $300 per month 10-15 times a year and lasts over the course of several years. As a result, the poverty level greatly decreases. The poverty gap narrows due to higher levels of education, increases in savings and investments, and strengthening credit. As a result, a stronger economy emerges.

With the introduction of highly competitive online services, there has been an additional influx of money due to the lowered cost of transfer fees. In addition, the receiver spends less money retrieving the money in remote locations because ATM machines are more widely available over some of the financial institutions.

Most Colombians have relatives or know of someone who is working abroad. The United States accounts for over 75% of the money remitted to Colombia. Most of the senders come from working class and are generally under the age of 40.

The need to lower the cost of transfer fees is more pertinent than ever due to the downturn in the American economy. Emigrants are returning in droves due to lack of employment. The amount of money remitted decreased 7% this year.

This decline in remittance affects the living standards of the poverty-stricken families dramatically. Things like school attendance, health care, and diet are suffering as local consumption and expenditures become sluggish.

The trend of people who send money to Colombia has perked up the ears of economists. If the sending money online to Colombia becomes a common occurrence, banking institutions will be forced to decrease their exorbitant rates of transfer.

Online money transfers are expected to dominate any other form of sending money home on a regular basis because it's quick, affordable, and secure. All the sender has to do is get online or make a toll free phone call, put money on a card, and ship it out to their receiver. The receiver gets the card FedEx and goes to any ATM to pull out the money. The person who sends money to Colombia can recharge the card online within minutes.

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