Significant Increase in the Demand of the Digital Transactions with the New Technologies in the Remittance Industry Market Outlook: Ken Research

Remittance industry is growing rapidly and the increasing remittance also affects the GDP of the economy. Moreover, by the time and new developments in the technology will lead to the significant growth in the forecasted period. The great portion of the economy is directly dependent on the remittance and with the more innovations in the technology the remittance inflows are become less time consuming and smooth. According to the report analysis, ‘Remittance Industry Research and Market Reports’ states that the transferring of money to family or friend in another country with the digital transaction is become more effective and many of the key players are working with the technology in improving the efficiency and have a positive impact of the cross border transactions. Moreover, in a research it is expected that India is the world’s largest receiver of the remittance.

With the introduction of the digital transaction in the remittance industry it will lead to less expensive transaction and eliminate the existence of middle man which directly reduces the fee of the cross border transactions. According to the World Bank report, the international remittances anticipate to reach above USD 500 billion in 2017, whereas the global body is doing development in the technologies which will enhance the safety measures and have a productive impact on the cross border payments. The digital remittances can assist people everywhere and make their lives easier which enables them do to what they want to do with their money. According to the report analysis, ‘Market Research Reports for Remittance’ states that in the coming years UPI (Unified Payments interface) can be popularized in this segment of consumers and allow a huge scope for the instant payment mechanism whereas, the biggest advantage of this is that in need only a payment address and will make fund transfer even easier. Moreover, the banks were using NEFT and IMPS for such transfers, but in the recent trend with the UPI it would open another channel for instant deal. Moreover, in the next version of UPI is expected to introduce with collect mandate for consumers who will now be able to pay their recurring payments through UPI. In addition, with the more development in the technology the RBI approval for the new version of UPI and make the market of digital transaction more effective in the remittance industry.

In the developed countries the remittance industry will grow more significantly with the more innovations and the internet technology is proof to be secured and most efficient way of transferring. According to the World Bank, India is the vital country of migrant’s remittance inflows across the globe with USD 68,968 million and percentage of 11.2%. In the developed countries such as North America and Europe is expected to acquire the handsome amount of share in the remittance industry whereas, in UAE the major transfer of money is done with Ripple for developing a remittance transfer mechanism which make the cross border payment cheaper and efficient to the consumer. Therefore, it is expected that in the coming years the market of remittance with the digital transaction will grow more significantly over the decades and more the highly competitive market is doing more research and development in the digital transaction.

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Dynamic Landscape of Technologies in the Remittance Market Outlook: Ken Research

Remittance industry is growing by the time and with the new innovations in the technology. With the development in the technology remittance inflows are become more smooth and less time consuming. Remittance industry plays a significant role in the GDP of the economy and economic growth. Moreover, the remittance have a positive impact on the livelihoods of people across the world. Whereas, lower-middle regions are the biggest destinations for remittance inflows and the U.S. and Saudi Arabia are the great contributors to the global remittance market carried by significant remittance outflows by foreign workers. Additionally, this remittance market is totally depend on the migrated population living across the world.  According to the report analysis, ‘Market Research Reports for Remittance’ states that with the more development in the technologies such as blockchain, digital transactions, Fintech and others of remittance industry lead the market growth in the forecasted period and in the coming years, more development and innovations are done which make the market more innovative and profitable.

Blockchain technology is the most prominent technology of this industry as with this technology any one can send money at home places from abroad with the use of cryptocurrencies. Moreover, the stage of Blockchain help in reducing the transaction fee and less time consuming furthermore, it is very much popular in making effective transaction. In 2016 it is observed by the World Bank that the remittance will total USD 585.1 billion. The effective applications of the blockchain is spreading across the globe such as it doesn’t include higher cost and have high speed with the simplified experience. Majorly, it eliminate the existence of middle man. Ripple is one of the most widely used blockchain technologies for cross border payments. Not only has this, another technology of Fintech is also capturing the market of remittance as it simply target the same customers of the Western Union/Money Gram at a lower cost via an improved process. Fintech is considering the distributed ledger technology as the backbone of a new cross-border payments infrastructure to solve inefficiencies and provide faster, more affordable services. Additionally, the digital transaction technology is playing vital role in this market and acquiring huge share with the more development in the technology. Moreover, with this technology the traditional remittance had been eliminated which includes waiting in line for several hours. Moreover, with the increase in the urbanization and digitalization signify the transfer of money with the usage of mobile phones. The introduction of smart phones is helping to break down the issues of cross-border payments. According to the report analysis, ‘Remittance Industry Research and Market Reports’ states that with the more development in the technologies and introduction of the new technologies will lead the market growth in the modern trend and make the market more competitive with the existence of numerous technologies.

North America and South Africa is dominating the market more significantly with the technology of blockchain and digital transactions and it is expected Europe is also performing in the more auspicious manner for acquiring the huge share in this industry. Not only has this, Asia Pacific region is start doing so many projects and development in the innovations and development in the existing technology as the market of remittance is becoming more competitive and attractive which can attract so many investors within a specified time and make the market fruitful for both investors and foreign workers. Therefore, it is expected that in the coming years, the market of technologies in the remittance industry will grow more significantly over the decades.

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Blockchain Technology Increasing Demand in the Remittance Industry Market Outlook: Ken Research

Transfer of money from one country to another country by a foreign worker is known as remittances. In traditional times, doing remittance was much harder as it require to be stuck in a queue for a long time at financial institutions whereas, in the recent trend the development in the technology eliminate this traditional way doing remittance, now with the help of Blockchain technology any one can transfer money from anywhere at any time which further saves time and less expensive. However, the vital portion of citizenry is directly depend on the remittance, which is often used for the education, basic household goods, housing, health care costs, food and others. Not only this, the GDP of developing countries is also affected by the remittances received and results to the efficient economic growth. According to the report analysis, ‘Remittance Market Research Report’ suggests that some of the countries receives tens of billions of US dollars as remittances and the market is becoming more developed with more innovations in the applications of Blockchain.

According to the World Bank research, the international remittances expected to reach above USD 500 billion in 2017 whereas, international section is working efficiently and doing more development in the applications of the technology that will significantly improve the cross border transactions. Moreover, India, China and other Asia Pacific region receives tens of billions of US dollars as remittances and government are also using Blockchain technology related to the concern over fraud, criminals, terrorists to transfer their money across the globe. Moreover, the Blockchain companies can outwit traditional wire transfer companies by providing a cheap, fast and secure system to move money from one part of the world to another. Digital transactions could well be the solution, especially because Blockchain technology allows payments to be processed instantly. Not only has this, the technology of Blockchain provides guaranteed, real-time transactions across the borders, reducing the risk of loss due to currency fluctuations as this technology cutting out many of the traditional middlemen and making money remittance more affordable. According to the report analysis, ‘Remittance Industry Research Report’ suggests that the scope of Blockchain for remittance is increasing in emerging markets and this technology can speed up and simplify the cross border payments process. Moreover, advancement is continue in the technology across the globe and in all types of applications which help the foreign worker in operating the Blockchain and generating more options related to the remittance.

Due to the transparency in this the usage of Blockchain is done widely and can be easily accessed. Moreover, in this modern era, urban population is increasing by time which majorly make the usage of mobile phones and digitization of money are the two major opportunities which are expanding the way of transferring the money. Usage of Blockchain is done widely, even in developing countries also. In addition, Bitcoin is the widely used cryptocurrency, though competitors such as Ethereum, Ripple and Litecoin also operate in the landscape of global payments.

With the existence of Banks and other independent agencies which includes Ria, PayPal, Western Union and others and banks include DBS Bank, Bank of America and others make the transfer of money from one country to another. Moreover, companies are also adopting the new technology and will drive the market of remittances and providing, cheaper, faster and reliable money transfer using Blockchain network such as Money Gram and others.

 Existence of companies, Banks, and independent agencies lead the competitive market which provide more opportunities for the both new investors and consumers and make the market more profitable. Therefore, it is expected that in the coming years the market of remittance will lead to growth in the coming years over the decades with the efficient working of key players in the applications of Blockchain in the remittance industry

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Increasing Demand of Digital Transactions in Remittance Industry Market Outlook: Ken Research

Transferring of money to friend or family member in another country is known as remittances. Major portion of population is currently depend on this money, which is often used for the food, housing, education, basic house hold goods and health care costs. As per the World Bank report, the international remittances expected to reach above USD 500 billion in 2017, the global community is doing more research in the development of the technologies that will improve the efficiency, safety and ultimately positive impact of these cross border transactions. Transferring money from one country to another country is very much expensive because there are limited connections between financial institutions and systems. But in the recent trend development in the technology eliminate the traditional remittance mean waiting in line for several hours just to get money wired to pay bills, and they almost always come with loads of fees. According to the report analysis, ‘Remittance Market Research Report’ suggests that change in the technology of transfer of money has been changing the workflow and all the processes in the international money transfer industry and it is also expected that the market remittance have a significant growth with the more innovations in the technology.

In the present era urban population has increases the usage of mobile and digitization of money are the two biggest opportunities that are diversifying the way of transferring the money. In the developed and developing countries the usage of smart phones is uncontrolled. In the research it is observed that the number of smart phones users are growing worldwide and will surpass 2 billion in the coming years. Across the globe, the usage of internet technology is growing rapidly in the modern trend which strictly reduce the cost and efforts associated with sending money back home. The introduction of mobile technology is helping to break down these issues of transferring the money from one country of another country. With this technology of mobile and internet anyone can now transfer the money very easily and quickly. Digital Remittances can help people everywhere make their lives easier by allowing them to do what they want to do with their money. Therefore, the technology of internet in the remittance industry plays significant role in today’s trend. With the help of internet technology, the growth of digital remittances market is driven by rise in automation and digitization, less time consuming and reduced remittance cost and growth in adoption of financial services. Moreover, many companies are offering the latest integrated technologies at a reasonable cost which are expected to drive the market efficiently. According to the report analysis, ‘Remittance Industry Research Report’ suggests that integration is the key to advancement in technology in the global digital remittance system market and expected to grow more significantly with the more innovations.

The remittance industry is majorly consolidated and concentrated among Money Gram, Western Union and others. Moreover, the remaining portion of market is fragmented with smaller players which are making market more competitive and the global remittance industry is undergoing with the significant change in the technology of internet. Companies such as Ripple are looking to change the way cross-border remittance is done. It is observed that Ripple has tied up with 25 banks globally. Moreover, Earth port is also a leading player in this market which got approvals from Reserve Bank of India (RBI).

According the research of World Bank, India is the largest country of Migrants remittance inflows with USD 68,968 million and percentage of 11.2% in the world. However, Mexico, France, Pakistan, China, Nigeria, Germany, Philippines, Bangladesh and Vietnam are the top countries which receives significant amount of remittance volume. In UAE the major transfer of money is done with Ripple for developing a remittance transfer mechanism that would be faster, cheaper and efficient to the consumer.

Remittance industry will grow rapidly as the transfer of money can be done very easily with the more innovations the internet technology and it is also proof that transfer of money with the internet technology is secured and most efficient way of transferring. Therefore, the market of remittance is growing rapidly with the technology of internet in the coming years.

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Rising Blockchian Technology in the Remittance Market Outlook: Ken Research

Overview: Remittance refers to that process in which transfer of money is done by a foreign worker to any individual in their home country. Most of developing countries are depending on the remittance which comes from the foreign worker. Not only has this the GDP of developing countries also affected by the remittances received and lead to the economic growth. In the past few years the global remittances is totaled in billions. Some countries such as India, China and others receives tens of billions of US dollars as remittances. Accordingly to the World Bank, it is estimated that remittance will total USD 585.1 billion in 2016. Moreover, according to the report analysis, Remittance Market Research Report’ suggests that remittance is having significant impact on the development of the economy growth with the increase in the income of the foreign workers.

Outlook: Transfer of money at home places from abroad through bank is bit costly and time consuming process whereas converting currencies also occur loss and need excessive time for transfer approvals. For making effective transaction blockchain platforms are established in which usage of bitcoin is done. The platform of blockchain are able to reduce fees and transfer money more quickly. The old system with the banks has been bogged down and blockchain technology is creating a new payment network that can be helpful majorly for the foreign workers as well as businesses. The applications of blockchain for remittance is broadly classified across the globe which includes no higher cost of transfer, high speed, simplified experience, elimination of middle man, security measures, privacy measures and others. Moreover, governments are using this technology related to concern over terrorists and criminals to move their money around the world. Blockchain is observed as opening the door to working with underdeveloped markets, particularly those in Africa as well as in countries throughout Asia. Whereas, the World Bank estimated that India had USD 69 billion as remittance in 2015 while China had USD 64 billion, Mexico had USD 25 billion and Nigeria had USD 21 billion. Additionally, evolution is continue in the technology of blockchain across the all types of applications which will help in remittance and generating more options related to sending and receiving money anywhere in the world. Therefore, the blockchain is very much reliable and secure thus prevents hackers. Not only has this, the key players are doing well in developing more application and reducing the average cost of transfer.

Market Size: According to the report, ‘Remittance Industry Analysis’ suggests that the remittance in many countries has gone up and in the coming years it will grow more significantly. Globally, significant growth is seen in the urbanization and there is tremendous increase in the urban population. Due to the transparency also the usage of blockchain is done majorly and can be easily accessed by the users. The rapid growth in the remittance industry is currently influencing the global GDP at a rate of 2.5% which is observed by the World Bank. Remittances from foreign workers made up a big chunk majorly of many Asian Nations’ GDPs. Additionally, the blockchain is the fastest-emerging technology and it is the key to a safe, cost-efficient, and fast money transfer channel that can support the needs of the Asia remittances industry.

Competition: Transfer of money can be done through bank to bank or with the help of independent agencies whereas, an independent agency includes PayPal, RIA, Western Union and others and banks include Bank of America, DBS Bank, Citi Bank and others. In addition, establishment of many new companies is done in the past recent year which includes Money Gram, Western Union and others which are resistant to adopt this new technology whereas willing companies will drive the market of remittances and providing much reliable, cheaper and faster money transfer using blockchain network. Moreover, remittances in Southeast Asia is a huge market, and many believe it’s ripe for innovation. Whereas, key player such as Coins.ph partners with banks and other financial institutions to make the remittances possible more significantly at a reasonable fee.

Conclusion: With the more development in the technology of blockchain in the remittance industry will result in the entire industry. Many key players are doing their job more efficiently and investing more in the industry which will lead to growth in the coming years over the decades and increase the knowledge related to blockchain also admire the growth of the remittance industry.

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Gulf Remittance to India Market Outlook: Ken Research

India’s immense population is in a way benefitting the country. This statement, though debatable, has been backed by the remittance sector of the country. Market Research Reports for remittance crown India as the 2017 leading recipient of international personal remittances claiming nearly 11% of global inflows. Despite its large contribution of more than 55% to India’s total remittance, remittance from the Middle East has recently witnessed a major fall of more than 9%. This fall has been attributed to the decrease in the average annual income per Indian migrant across the region.

The Middle East accommodates the highest number of Indian migrants around the world who account for nearly 20% of the total global migrants in the Middle East and almost 55% of the total Indian migrants globally. Despite this it was revealed that more than 40% of the migrants in the Middle East were unskilled labor. Indians occupy various positions with nearly 10% working as trained professionals but the majorities (around 75%-80%) however, work as laborers and technicians in construction companies. The Gulf may appear as a haven for employment but this does not mean it is immune to economic disturbances.

1.      Remittance Industry Research Reports attribute the fall in remittance to the ongoing economic downturn in the Gulf due to fall in crude oil prices, internal political disturbances , the extra burden of taxes on expats, like the family dependent tax in Saudi Arabia and the growing inclination to recruit locals.

2.      Further Indian workers in the region have   reported violations of contractual terms, adverse working conditions, poor wages and problems related to medical insurance and compensation claims. As a result many Indian workers have shown an interest in returning home and more than 3,000 had requested repatriation from Indian authorities in 2017 with most of them being from Saudi Arabia.

3.      Indian policies towards the migrants heading to the Gulf are also a cause for the decline, like the introduction of a tax on conversion of remittances, extra regularization of foreign recruiting markets and the recent color coding of ECR passports. Since ECR status was included on a separate page, India’s government intended to remove this page by coloring the passport jacket orange to identify ECR emigrants. This could create a sense of inferiority among the ECR passport holders due to their poor economic and educational status and further decrease labor flow. After public anger this policy has now been abandoned. 

The effects of such unfavorable factors are visible as material trade and labor between India and Arabia has declined. Consequently NRI remittances to India from the GCC (Gulf Cooperation Council) countries have decreased alarmingly. A decline of remittance inflows creates a major cause for concern due to adverse impact on India’s balance of payment and on the domestic employment adjustment. The government must take remedial measures to curb such decline and to prevent the discriminatory behavior against ECR migrants.

Remittance is a major component in terms of contribution to GDP, especially for developing nations like India where domestic resources and national production are insufficient to provide full employment for the existing labor supply. Also while India’s remittance inflows are similar to China’s the share of remittances as a percentage of GDP is higher in India which reflects a higher dependency of India’s domestic economy on foreign remittances. Also, the average wage in India is lower than that of the Gulf and since it is a major source for India’s remittance inflow, a decline in earnings in the region could adversely affect India’s employment and balance of payment.

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Near Field Communication: Unstoppable Rise Market Outlook: Ken Research

Remittance Market Research Reports that Analyst over the years on the confidence of their experience and advancement have speculated that plastic cards would be ditched by our phone that is they would use a radio frequency called Near Field Communication (NFC) to send payments data to compatible store registers. Active devices are able to both send and receive data, and can communicate with each others as well as passive devices. Smartphone are the most common form of active NFC device

Modes of Operation of NFC

NFC devices support three modes of operation reader/writer, peer to peer, and card emulation.

•                    Reader/writer Mode: NFC devices are capable of reading NFC forum-mandated tag such as contactless smartcard. This mode is used to get information or initiate an action.

•                    Peer-to- Peer Mode: It is used to establish two-way communication to exchange data. They can initiate communication as equals or peers.

•                    Card Emulation Mode: This enables contactless payment and ticketing, access control, transit, tollgates without changing the existing infrastructure.

Technology Enabler

NFC has proved to be blessing in disguise for customers and business due to its inherent characteristics such as:

ü  Intuitive: NFC interactions is one touch simple setup and can replace the pairing of Bluetooth enabled devices, or the configuration of Wi-Fi network through PINs and keys

ü  Open and standards based: NFC technology follow universally implemented ISO, ECMA and ETSI standards.

ü  Interoperable: NFC has ability to support secure application, its transmission are short ranging from touch to four centimeters and exists with contactless card technologies.

Remittance Industry Analysis Reports that in 2017, Apple opened up IOS 11 to support NFC application on the iphone. They had NFC integrated in their phones, it’s no longer limited to Apple Pay but even third party developers can take advantage. Even the android phones who are dominant market leaders globally they have already inculcated native NFC support on the phones ranging from Samsung galaxy S9 to the new Google pixel 2. In fact there are already over 2 billion NFC enabled devices in the world across every major mobile operating system. According to industry veterans NFC market will continue to grow 17.9 percent over the next decade, reaching nearly $50 billion by 2025.

Tostitos’ launched an alcoholic- detecting chip bag that allows those who had a little much to drink to call an uber by tapping the NFC- enabled bag. NIKE’s NFC enabled basketball fan jerseys unlock premium content like game highlights, playlists and products. Compari and skyy vodka’s fridge magnet let you order alcohol with the tap of your phone. Even L’Oreal introduced a UV sensor to test how much sun you’ve taken in the day.

Promising Future of NFC

All Developing countries for instance Mexico still has large chunk of the population that is still not in the reach of banks and financial institutions due to lack of infrastructure and information to the customers. This makes the usage of mobile banking a prime source to reach the rural customers who would ideally take years to become a part of the banking and financial services sector. This trend is likely to be continued in future with the proliferation of smart phones that makes online transfers more convenient and cheaper. However in India the market is bit different as people are not comfortable with NFC they are still depends on cash transactions.

Android, Apple, and Samsung Pay are notable users of NFC technology which promote safe and secure payment between customer and POS system with just one tap. In new age of globalization and technology advancement NFC is prophesized to be knight in shining armor by collaborating with POS and MPOS systems and even give his share of contribution in healthcare sector by detecting problem just by touch. NFC would become a major factor for discarding debit card in the future.

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The Biggest Issue with Remittance: Ken Research

Introduction: The Global Remittance Market has been valued to be at approximately USD 600 Billion based on Market Research Reports for Remittance. The market has had a growth rate of about 4.5% between 2012 and 2017 due to increasing reliance on remittance amounts in low and middle income countries. Close to 70% of the remittance amount transferred is used for the basic expenses of the recipient families in developing economies. The increasing reliance of remittance has caused a growth in the contribution of remittance to the GDP of emerging economies with countries like the Philippines, Senegal and Guatemala having remittance amounts which exceed 10% of the GDP. The issue is that in developing economies there is high importance that the cost of remittance be as low as possible

Global Scenario:  While the global cost of remittance has gone down from roughly 9.8% in 2000 to about 7.3% in 2017, the cost of transferring money to developing nations has tripled since 2000 and has become 5 times what it was in 1990. This increase in cost cannot be sustained by developing countries. The basic cost of transferring USD 100 ranges from anywhere between USD 1.2 to USD 34. In the case of developing markets where every cent counts, this causes major financial distress. The cost of sending money in 2017 has been calculated at USD 30 Billion for global money transfers. This amount is the entirety of non military foreign aid provided by the US for the year 2017. There have been repeated meetings describing initiatives from the G8 countries to bring the cost of remittance to below 5% of the total cost but they’re not even halfway there. The costs play such an exponential role in the loss of finance that a reduction of 5 % points could lead to savings of about USD 16 Billion.

Market Scenario: On the whole, the cost of remittances has remained stable in most regions. At an average of 5.31%, Southeast Asia was the cheapest region to send money to, whereas Sub-Saharan Africa was quite a bit more expensive at 9.48%. Eastern Europe and Central Asia has also stayed fairly constant at 6.3%. The one region which recorded an increase is the Middle East and North Africa, jumping to 7.63% in the fourth quarter of 2016 from just over 7% in the previous quarter. The Global Average remained stable at 7.45 percent in 2017, compared to the 7.40 percent recorded in 2016. This is the same figure recorded for this Index in 2016.  Banks still remain the most expensive Remittance Service Provider. Although there is not much of an issue for outbound remittance in the G20 countries, with the majority of the countries having a rate of less than 10%, excluding China, inbound remittance charges are significantly high and are the highest in the African regions. The average cost of outbound remittance as a % of the amount transferred for the major G20 countries is given below:

Brazil -6.98%,India-6.14%China -10.26%,Indonesia -7.84%,Mexico-4.85%,Turkey -7.62%,South Africa – 7.56%.

While the cost for outbound remittance is not high in any of the above countries, the cost of sending to developing countries in Africa is extremely high with highest inbound remittance rates: South Africa-17.70%, Ghana -16.65%, Tanzania-18.41%, Nigeria -21.39%, Angola -23.02% with key players in the remittance market being PayPal Holdings Inc., Western Union, MoneyGram International and Euronet.

Conclusion: remittance based money transfer works for the developing nations as there is a steady source of foreign income. The increased strength of the foreign currency usually allows for an adequate amount of local currency to be withdrawn but the global foreign exchange volatility combined with the number of intermediaries have led to costs for money transfer staying consistently high. There is an emerging need for low cost money transfer services which minimize the cut taken away by intermediaries thereby lowering the cost of remittance to developing economies as much as possible. The high rates of inbound remittance in African and the few vulnerable Asian nations is skewing the global average and is the major cause for the lack of reduction of remittance rates globally. Understanding how to address this issue could help in increasing the value of the remittance market, saving money and boost the economy for low income nations

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Business Finance: Can Cryptocurrency Be the Future of Remittance: Ken Research

Introduction: There has been an increasing trend by migrant workers in foreign mature economies like North America and Europe to send money back to their families in their home country in the form of Remittance. Research predicts that by 2030 there will be an inflow of USD 6 Trillion with about half being sent to Asia. The biggest recipients of this fortune would be to developing countries with high rural population – India was the largest remittance market in the world in 2017 with USD 69 Billion being sent back to India alone. India was followed by China with a remittance amount of USD 64 Billion and Philippines with USD 33 Billion being the three largest remittance markets in the world. Aside from these three, more Asian countries like Pakistan and Vietnam were also on the list with remittance amounts of USD 20 Billion and USD 14 Billion with all of the mentioned countries being in the top 10. This helps explain why the Asian remittance market for 2017 was at USD 256 Billion.

The Issue: Although there is a significant amount of money being sent to these economies, a major portion is lost through transaction and service fees. In many developing economies, every penny counts as most families receiving remittance money use about 70% of the money received to cover their basic expenses. Transaction costs eat away a major chunk of the money with margins ranging from 2% to over 15% in developing markets. Although the global average is around 7% the number is majorly skewed with far higher rates in lower economic countries. This loss of funds as the cost of sending money home is causing a major dent in the role remittance can play towards the development of the global economy.

Opportunity: The implementation and growth of the peer to peer network for financial transactions and the growing need for a decentralized currency has led to the explosive increase in demand for crypto currency, mainly Bit coin. Although Bit coin is the most prominent there are other crypto currencies that exist which are gaining popularity and increasing value like Ethereum, Litecoin, Ripple, etc. The major growth, while positive for the future outlook of the economy and for crypto currency has had a large portion owing to people buying crypto currency without fully understanding the concept and its application. The second roadblock has been the level of adoption by vendors and companies owing to the skeptical nature of crypto currency. These factors have led to Bitcoins being worth USD 0.09 per bitcoin in July 2010 to USD 17,549.67 by Dec 2017. Although the volatility of the currency has yet to be addressed due to the lack of a law regime for regulation and due to a waving market sentiment. The security and validation offered allow for bitcoin or any solid crypto currency to be the most stable medium for the future of finance. Having all transactions done using crypto currency would result in a completely decentralized and open financial system which would completely be controlled by the network using it ensuring no one party gains through an unfavorable or unsavory method. Given these advantages, there are major applications for remittance through crypto currency. This trend has already started to see growth in South Korea and China with companies aiming to use crypto currency for remittance transactions and the trend is also expected to be implemented soon in Malaysia. Given that financial technology companies have had a major growth rate in Asian markets there is a major scope for a strong, well branded and trusted crypto remittance company to ensure that maximum remittance amounts reach the families that need them. Start-ups such as Bitspark in Hong Kong, and Bloom, Payphil, coins.ph and Satoshi Citadel Industries’ (SCI) remittance unit Rebit in Philippines, are trying to turn that into a business model. There is an even bigger advantage for developing economies: Reduced demand for crypto currencies in smaller economies often can lead to lower bitcoin prices, so sending $100 to Indonesia or the Philippines via bitcoin would result in the equivalent of more than $100 at the other end. Without the bank fees, the shops say they can charge their customers 25 to 75 percent less. This means a great deal to countries where the majority are in poverty and need every bit they can get. The introduction of Crypto currency has led to easier and safer transactions and while there are still security issues which need to be resolved, they are expected to be sorted out in the near future as research indicates that by 2030, Bitcoin will become the 6th largest global reserve currency leading to it having a mainstream place in society and therefore the economy

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