There is an extensive understanding of what Fintech is all about but everyone doesn’t go in depth. Without any boundaries of how much technology has to revolutionize a financial service/product or how much disruptive the idea or a firm is, to be considered as a “Fintech”. These days almost everyone who applies the technology to their every process could call themselves a Fintech.
As per the definition of Investopedia, “Fintech is a combination of financial technology that defines an evolving financial services sector in the 21st century. Initially, the term applied to technology, to the back-end of reputable consumer and trade financial organizations. Since the ending of the first decade of the 21st century, the term has extended to contain any technical invention in the financial segment, including inventions in retail banking, investment and even digital coins such as Bitcoin.”
What are Remittances?
A remittance is a money transfer to your friend and family member in another state. Millions of people globally are dependent on this money, which is regularly utilized for basic household, education and health care related costs. Actually, remittances have established a single major source of foreign exchange in emerging states since 2000; much more than international can help. But with traditional remittances means waiting in long lines for hours only to receive fund wired to pay bills, and they always come with high fees.
Banking has generally been one of the business sectors which are mostly unaffected with the disruption of technology. The popularity of mobile devices has initiated to challenge the benefits of physical distribution by banks. Consumers have normally been sluggish to change financial-services providers such as imps money transfer API provider and that is fact in banking as well as in the remittance segment.
Technology Advancement over Payment System
Technology and its revolution powerfully affect the overall payments system. This revolution generates two possibly opposing effects on cash:
- Improved competition from evolving mobile and other digital payment substitutes
- The capability to automate certain phases of cash management. Regulation has been assisting different banks and traditional licensed financial service providers in several ways and has protected them from the disruptors of Fintech. Enabling banking agents to flourish in some markets have been the method for banks to enlarge their services.
How Technology is transforming the REMITTANCE INDUSTRY?
Everyone agrees that technology has been evolving the workflow as well as all the procedures in the international money transfer industry. These days systems are being more transparent to enable integrations through Money Transfer APIs. Bits of technology can be added into the internal system to change, automate, for rapidity, security, make less unsafe, make more proficient and much more. Tasks which are traditionally managed with physical bills, huge computers, as well as human interaction are now processed completely on digital interfaces. And that is where Fintech came into outdated international money transfer functions.
A recent analysis discovered that the remittance segment has developed to an incredible $585 billion industry.
Throughout the single year of 2017, $439 billion was sent to emerging states, associating to about 700 million relatives living off of remittance payments worldwide.
With the further money transfer software development in the remittance industry will affect in the whole industry. Many professionals are doing their job more professionally and advancing more in the industry which will lead to growth in the future. It boosts the knowledge regarding the latest technology also respect the growth of the remittance industry.