Saturday 14 July 2012

CONDUCTING A WIRE TRANSFER

Wire Transfer
Money transfer has become a very essential and prominent feature in banking, with the world becoming a global village. In the recent past, overseas business transactions have tremendously increased more than ever before. This is of course a result of advancement in technology, especially the internet and mobile telephony. This is also directly related to advancement in E-commerce and online banking. Business people are now singing to the same tune of easy, fast and revolutionary modes of conducting business transactions. Wire transfer (also known as bank wire) is basically a mode of transferring funds from one bank account to another electronically.
The easiest way to illustrate wire transfer is by drawing an analogy with mobile phone money transfers. In Kenya for example, we have mobile phone money transfer services like: M-pesa, Airtel Money, Yu Cash, Orange Money, Tangaza among others. They form a big analogy with wire transfers. The only difference is that mobile phone money transfers are done via mobile phones and are ran by mobile phone service providers, whereas wire transfers are conducted via the internet and are ran by wire transfer system operators.
If time is money, then wire transfers can help you save a bindle of cash, due to their speed and convinience. They are often used in businesses that require interbank transactions, as well as online bank accounts. Wire transfers is often the most expedient method of transferring funds between bank accounts. In case you have an online bank account and you are wondering how you can deposit or withdraw funds to or from it, relax because you are in the right place.

The process of wire transfers may vary from one bank to another, but generally the procedure is as follows:
  •       The person wishing to conduct a wire transfer will approach his bank, and order the bank to transfer a specific amount to a specific bank account (and gives the bank name and ABA number or other code of the receiving bank).
  •       The sending bank will then transfer a message via a secured system to the receiving bank requesting to effect payment as per the instructions.
  •       Upon the conclusion of the above formalities, wire transfer is effected as per the instructions.
  •       The actual transfer may take from as little as minutes to even a day to be completed.