The introduction of innovative fintech techniques in the money transfer industry is still relatively new. Each year there are billions of dollars transferred internationally in the form of remittances or for purposes other than that (investment and more).
Traditionally this money was transferred in physical form – a process that was unsafe, time consuming, and expensive. However, times have drastically changed now. The advent of technology has invaded every single aspect of our lives and we couldn’t be more grateful for that!
Here’s how technology has touched and transformed the money transfer industry – just like every other thing it has touched.
Fintech and Money Transfers
Over the years there has been considerable increase in the mobility and digitisation of money. The two have collectively transformed the way people move and manage their money. The use of mobile phones is widespread. It doesn’t matter whether you’re sitting in a developed or a developing country, the rampant usage of mobile phones impacts every single aspect of life.
There was a time when mobile phones only served as remote calling devices. Today however, the same have evolved into complex devices that shrink the world into the palm of your hands. Individuals across the world pair mobile phones with internet technology to digitally see through tasks and reduce the time and costs that would have been invested in it otherwise.
Say for example, you’ve got to pay your utility bill. Back in the days, it would have taken you about 20 odd minutes to reach the payment collecting authority, another 10 minutes to wait in line for your turn, and then another 20 minutes to get back to work. Plus, you drove or took the bus to the venue – that adds commuting costs too to the equation. However, with the mobile phones and internet, all you need is 2 minutes to clear your bill.
Similar is the case when, people transfer money overseas. The rise of modern technology in the financial sector has led to the evolution of fintechs like World First that are bent upon breaking down the geographical barriers and providing customers convenient, affordable, and more secure means of transferring money internationally.
Digitisation of money is another important aspect of technology that has rightfully transformed the money transfer industry. The fact that modern day money transfers do not involve the movement of physical cash has made the process quick and efficient.
Fintechs in the money transfer space are implementings a host of different techniques like digital wallets and cryptocurrencies that have more or less changed the nature of money. Digitally transferred money has the ability to reach anywhere, anytime. You don’t have to wait till the next day for the banks to open so that you can transfer money to someone halfway across the globe – modern day money transfer services take care of that for you.
Basic transfers of money are only the beginning. There are a number of fintech startups involved in devising plans and strategies around unique ideas that will help the fintech industry grow and improve upon the already ingenious way it operates.
Just like any other financial services sectors, fintech is bound to bring greater and further effectiveness to the money transfer industry as it grows and flourishes.