Summary: Banks are; 1) Afraid of getting hit with fines because of the crack-down on transferring money to shut down terrorist financing. 2) When they do monitor transfer activity closely it makes it unprofitable to run low cost transfer services.

1) & 2) are hitting peoples ability (largely immigrants sending money home) to send money to many countries cheaply and getting occasional blockages.

IMO seems like a short term issue. Larger players are stepping back as the profits are not worth the risk/effort, so smaller players have the opportunity to step in. I recently put a small amount into the fund raising of a company doing just this as I see it as a great area for disruption. I don't want to be seen as commenting for a plug so won't mention the name.

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