Indices Methodology
A high-level overview of what TEER, RCI, and RVI measure and how to interpret them across corridors.
Full mathematical specifications (formulas, parameters, weighting, and blending logic) are proprietary and available to institutional clients under NDA. Contact sales.
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Synthetic Volume Weighting
We don't see provider transaction volume directly. Instead, we infer relative provider importance from observable quote-quality and availability signals. Those proprietary signals are used to create synthetic weights for aggregation.
What synthetic weighting does
- Approximates relative provider importance when true transaction volume is not observable.
- Uses proprietary signals derived from quoting behavior and quote quality to avoid easy gaming.
- Produces normalized weights that are applied consistently when aggregating corridor-level indices.
What we publish (and what we don't)
- We publish index values plus a confidence score (0-1) and suppression behavior when coverage is insufficient.
- We do not publish the underlying formulas or weighting parameters on this public page.
TEER — Total Effective Exchange Rate
TEER represents the net rate recipients effectively receive after fees and FX markup. It is calculated from the weighted cost ratio and the mid-market reference rate.
Definition (overview)
TEER is an effective exchange rate that reflects the all-in outcome after fees and FX costs, benchmarked against a mid-market reference rate. We aggregate eligible provider quotes using proprietary synthetic volume weights to publish a corridor-level rate.
Inputs
Eligible provider quotes (fees and quoted FX rate), rights-matrix eligibility filters, and the mid-market reference.
Output
A corridor-level effective exchange rate, plus confidence and suppression metadata for auditability.
Full mathematical specifications are available to institutional clients under NDA.
Interpretation
Higher TEER means a better effective rate for the recipient.
Lower TEER signals higher friction in the corridor.
Promotional rates are excluded to avoid teaser-rate distortion.
RCI — Remittance Cost Index
RCI is the weighted total cost of sending money as a percent of the send amount. It captures both explicit fees and hidden FX markup.
Definition (overview)
RCI represents total corridor cost as a share of the send amount, combining explicit fees and implied FX costs. We compute a corridor-level value by aggregating eligible provider quotes using proprietary synthetic volume weights.
Inputs
Eligible provider quotes (fees and quoted FX rate) and rights-matrix eligibility filters.
Output
A ratio that can be expressed as a percent, plus confidence and suppression metadata.
Full mathematical specifications are available to institutional clients under NDA.
Interpretation
Higher RCI means more friction (fees + spread).
Lower RCI means a more efficient corridor.
Reported as a ratio (0-1). API clients can express it in percent.
RVI — Remittance Volatility Index
RVI measures the weighted dispersion of effective rates across providers. We also publish RVI_bps for standardized comparison.
Definition (overview)
RVI captures how widely providers disagree on effective pricing in a corridor. We aggregate eligible provider quotes using proprietary synthetic volume weights and publish a dispersion value alongside a basis-points variant for standardized comparison.
Inputs
Eligible provider quotes (fees and quoted FX rate) and rights-matrix eligibility filters.
Output
A corridor-level dispersion metric plus a basis-points variant, with confidence and suppression metadata.
Full mathematical specifications are available to institutional clients under NDA.
Interpretation
Higher RVI means providers disagree more on pricing.
Lower RVI means tighter market consensus.
RVI_bps standardizes volatility relative to TEER.
Data Inputs & Controls
Every index point is governed by the same filtering rules. Providers must pass the rights matrix, promotional pricing is stripped, and minimum coverage thresholds apply.
Rights Matrix
- Each index has its own provider allowlist
- Only active, licensed providers are included
- Promotional rates are excluded
Mid-Market Reference
We use daily mid-market rates as the benchmark, with automatic fallback to the most recent available rate when daily data is unavailable.
Confidence & Suppression
Minimum coverage thresholds apply. When coverage is insufficient, index points are suppressed. A confidence score (0-1) is published with every data point.
Need the indices or the full technical methodology?
Enterprise customers can access TEER, RCI, and RVI via API and scheduled exports. Full mathematical documentation is available under NDA.