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How Technology Is Transforming The Remittance Industry

November 22nd, 2019

How technology is transforming the remittance industryThe remittance industry has been improving the lives of many families and economies globally. In 2018, the World Bank estimated that international remittance stood at $689 billion as opposed to $633 billion the previous year. India has retained its position as the top remittance-receiving country in the world.

Without a doubt, the remittance industry is growing by the day. Increasing globalisation, seamless visa processes, and better connectivity between countries, people are finding it easier to move to other countries in search of better job opportunities.

Another contributor to the rise of remittance is technology. Advancements in technology have brought about a significant shift in the way the remittance industry works. Let us understand how.

Arrival of the internet

The internet is no longer a luxury but a necessity. Whether it is a school or a big corporate house, internet usage in daily life is irreplaceable.

International remittance too saw a drastic change with the arrival of the internet. Back in the day, people had to rely on money orders and demand drafts to transfer money. These methods of money transfer were time-consuming and inconvenient.

The internet changed this to quite an extent. The advent of digital remittance offers customers a simpler and affordable remittance service option. These days, almost all national and international banks offer services for international remittance. Net banking and online remittance money transfers have made it far more convenient for remitters to transfer money to their families.

Introduction of mobile money technology

Remittance technology witnessed another transformation when the internet made its way to mobile phones. Communication plays a pivotal role in the remittance industry and mobile phones further bridge the gap between remitters and receivers. Most banks, today, offer mobile banking with secure remittance service options making it easier to transfer money anytime, anywhere.

A simple text message informs you when the money is debited or credited into your account. Mobile phones and SMS alerts have also made it easier to track refunds or discrepancies in money transfers. The introduction of 5G services is expected to enhance further the quality of mobile services that can be used by the remittance industry.

Money transfer businesses

Money transfer businesses now have a new dimension to their services in the form of digital remittance. There are many remittance services and apps that let you transfer money with a simple click. The advent of digital remittances has drastically reduced transfer times that were once a regular feature in the realm of remittance services.

Fintech services have a global footprint and are easily accessible to remitters anywhere in the world. They are convenient for transferring money to people living in remote parts of the world, with no access to physical outlets of financial services. They prove extremely useful for customers who have access to the internet and mobile phones and need to leverage remittance services.

Fintech services often offer competitive exchange rates and transfer fees, making the entire process transparent, flexible – and most importantly, affordable.

Technology: an integral part of the remittance industry

One of the biggest strengths of technology is that it can be moulded to meet the requirements and preferences of people. Earlier, expats usually waited till they saved up a considerable amount before transferring it to their loved ones, to save on transfer fees.

The rise of technology within remittances has changed all this. People nowadays send and receive money with a few clicks on their mobile screens. Many countries have introduced government incentives and relaxed regulations to encourage remittance flows via technology backed legal channels. Digital inventions like payment aggregators have also upped the game of global remittance.

To sum up

The world is continually evolving. Close observation reveals that the international remittance industry sees a technological shift every few decades. While the internet, international mobile banking, net banking, fintech services, etc. have proved to be very beneficial, only time can tell what the future holds. But we can all agree that with technology advancing every year, the future of the global remittance industry looks bright.

Also Read: Technology Is Making Money Transfer Brands More Relevant, Not Less