The
remittance sector is constantly expanding and so is financial technology
(fintech). Remittance
Market Research Reports show that remittance has constituted the single
largest source of foreign exchange in developing countries from 2000 onwards.
The global community is searching for technologies that will improve the
efficiency and safety of cross border money transfers known as remittances.
Transferring money is expensive because there are limited connections between
financial institutions and systems. Currently, there is a need to have a
neutral network to tie dissimilar and isolated institutions so that money can
be moved cheaply and seamlessly from one country to another.
Traditional
remittance involves waiting in line for several hours and the burden of fees as
well. Remittances cross national boundaries, currencies and financial
institutions which lead to inefficient and expensive transactions for everyone.
The rise of mobile and digital technology is changing the way we manage and
move money.
1.
Mobile phone
usage is rampant and nowadays smart phones and internet technology are helping
to reduce the cost and effort of transferring money. People who live in one
city or country can now use basic cellular fintech services such as SMS to send
money across to their family members. This method is widely accepted by people
and is secure, convenient and affordable.
2.
Digitalization of
remittance has also originated in recent years thereby changing the very nature
of money. Internet has driven this market and has reduced the transfer cost and
time.
The
remittance market is a valuable external source of funding for many families
around the world. With help of internet, the growth of remittance market is
driven by rise in digitalization and automation. Financial technology has been
innovating in recent years in order to cater to the global remittance market
which according to Remittance
Industry Analysis is expected to surge shortly. Investments in fintech
have majorly been for money transfer services. India occupies a prominent
position in the global remittance market as remittances from Indians living
abroad rose by nearly 10% in 2017 and India retained the top spot as the
largest recipient of such payments. India was followed by China, Philippines
and Mexico as the top countries receiving remittances.
New
ventures are capitalizing on the trend propelled by the rise of mobile
technology. There are a handful of popular fintech money transfer service
providers influencing the fintech remittance industry out of which a
considerable number of companies are based in the UK. These include WorldFirst,
TransferWise, TransferGo and WorldRemit with the latter two having operations
in 44 and 120 countries respectively. London based WorldRemit is highly
renowned and competes with the US based Western Union who is the global leader
in cross border/cross currency money movement operating in over 200 countries.
Despite this WorldRemit is undertaking developments in order to increase its
customer base from 2 million currently to 10 million by 2020.
The
fintech developments are greatly augmenting the digital remittance market. The
US and UK are catering well to the industry and are reaping profits evident by
the fact they are world leaders. India though not as technologically advanced
can be considered as a significant player having immense potential.
For more information, click on the
link below:
Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
0124-4230204
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