Shinhan introduces remittance services for migrant workers
A model promotes Shinhan Bank’s foreign currency remittance system in this promotional image. / Courtesy of Shinhan Bank
By Nam Hyun-woo
Shinhan Bank has almost finished developing its foreign currency remittance service tailored for migrant workers, the bank said Monday, pledging the service will be available for more currencies later.
According to the bank, the service allows migrant workers to send money home in their own currencies. After adding India’s rupee in January, the service is also available for the Philippines’ peso and Indonesia’s rupiah so far.
Since many Asian currencies have limits in offshore trading, there have been inconveniences for migrant workers here, many of whom have had to transfer money through the U.S. dollar.
In recent years, some banks have started offering home currency transfer services through affiliations with foreign banks, but the services were unpopular because of unfavorable currency rates between the U.S. dollar and the home currencies of the senders. Also, a significant amount of time was required for a single transfer, inconveniencing the workers, the bank said.
Shinhan Bank said that its currency remittance service reflects the currency rate of a sender’s home country in real time so that it can apply a rate favorable to the remitter. Also, the service runs through Shinhan Bank’s overseas network so that receivers get the money more quickly.
To expand and improve the service, broadening Shinhan’s overseas network is crucial, said a Shinhan Bank official.
The bank is seeking to increase its overseas network in Southeast Asia. Since Shinhan CEO Cho Yong-byoung has been at the helm, the bank has been expanding its service to the region.
The bank said Cho’s globalization initiatives have driven the bank to expand its network to 145 units in 20 countries.
“The bank seeks expenditure of its overseas network under CEO Cho’s directive of seeking globalization through international networking,” said a bank official.