Fintech remittance solutions has the potential to slash the prices associated with transferring money across borders and reduce transfer times as much as possible. Embedded with broader approach, spreading beyond easy and affordable money transfers and including many of the more traditional banking features. Fintech technologies have the potential to disrupt the remittance process eliminating the number of middlemen involved to make cash connections easier, safer and quicker.
About Fintech for remittance industry
The technology is still in its youth, and so there is plenty of space for disruption across the board as entrepreneurs wise up to the potential of blockchain technology. If you are quick off the mark and if you are able to reap the rewards of the secure data transfer and storage that blockchain technology has to offer then you will quickly leave your competitors in the dust.
Online remittance, as compared to conventional money transfers, is highly cost-effective, simple and flexible. The costs saved from not having to operate a physical branch means that fintech startups can pass the savings onto senders. The increase in usage of mobile phones and technology by low-income workers is also providing an avenue for fintech developments in remittance.
The features of a cheaper, faster and more accessible remittance option may help bitcoins thrive in the space. The peer-to-peer transfer technology through digital currencies offers a much safer and cost-efficient approach to money transfers which happens real-time.
The potential of Fintech for the remittance industry
No more wire transfers – Blockchain-based companies can outmaneuver traditional wire transfer companies be offering a fast, cheap and secure system to transfer money from one part of the world to another.
Third-world disruption – The constant speed of innovation means that many third-world countries are seeing a boom in smartphone ownership thanks to the declining cost of hardware. In some of these countries, there’s a poor banking infrastructure or concerns about the long-term value of the national currency. Digital transactions could well be the solution, especially because blockchain technology allows payments to be processed instantly.
Cheaper processing fees – For people who regularly send money internationally, the processing fees can quickly add up. Blockchain technology removes the monopoly that traditional banks hold on the market, and that means that processing fees are virtually non-existent. If one provider charges more than another, people will simply switch to the cheaper provider. It’s in the interests of providers to cut overheads for customers as much as possible.
Increased transparency – Another element to this transparency is the lack of centralization. There is no organization or government that can act unexpectedly – such as by adding or removing cash from circulation – and this helps to build confidence in digital currencies and blockchains.
Near impenetrability – One of the big advantages of Blockchain is that it’s very difficult for hackers and fraudsters to take advantage of it. Banks are centralized, and that makes it easier to compromise them – but with blockchain, everything is tracked on a ledger which stops people from spoofing it or creating fake data.