Remittances contribute substantially to a country’s economy. In the year 2018, the World Bank estimated that international remittance volume stood at $689 billion. India is the largest receiver of remittances globally, while approximately $70 billion goes to Latin America. As a result, no country underestimates the importance of remittance. Consequently, stakeholders are now extensively deploying technology to make the overall process smoother for remitters and receivers.
Thus in this article, I will explain the importance of technology in the remittance industry.
The Internet is a necessity
With the advancement of technology, smartphone penetration has increased; today, life is unthinkable without a mobile phone. People rely heavily on their smartphones for meeting most of their essential needs. With money, people earlier had trust issues; however, with government efforts on financial inclusion, online remittance witnessed an upswing. We must note that this is made possible with the high penetration of the internet in our lives.
Without the internet, life, as we lead today, is unimaginable.
Technology as a blessing
Nowadays, the Remitters use different methods to send money back home other than cash to cash transfer. According to some studies, over 75% of people feel comfortable using online money transfer services. They are acclimatising to the changes and are using payment services provided by money services firms, fintech start-ups, banks, or corporations. Customers are happy with the transactional rates, fees and grievance redressal services.
Money transfer service providers like ATL Money Transfer has brought a smile on many faces by transferring money back home on time with security.
According to the research, almost 6% of expatriates use web portals or mobile devices to transfer money back home. The number may not be so noticeable; however, it is a significant amount because a few years back, it was almost zero. At that time, mobile devices were there, but no one used the internet to send money back. However, gradually people are opening up to newer regulated mechanisms of online money transfers.
One of the critical requirements of the remittance industry is to have proper financial access. Around fifteen years ago, an estimated 20% of migrants had bank accounts. Thankfully, today, more than two-thirds of migrants have a bank account and access to the financial system.
Shifting to online money transfer
Migrants who send money back home often used unregulated channels to make cross-border money transfers. This mechanism involved multiple risks and lacked reliability; hence, it is natural for them to embrace the internet-based money transfer system.
According to a study, demand for financial service is increasing day by day. And to meet this demand, the industry is witnessing an enhanced deployment of innovative technologies.
As discussed, we understand that today technology plays an extensive role in the remittance industry. Technology easily adapts to the requirements and preferences of the customers. Earlier remitters need to wait to save money and make a transfer back home. They worried about the transfer fees, which was considerable. Moreover, they had to rely on unregulated modes of transferring money. These methods were time-consuming and inconvenient, with a lack of proper assistance.
Given the opportunity, many fintech firms developed advanced, user-friendly software that provides ease of usage. This process transfers money quickly with low transfer fees and zero worries.
About ATL Money Transfer
ATL is one such technology-oriented firm that offers same-day or instant money-transfer service. It has more than 50,000 pickup locations globally across continents. It also provides 24/7 customer assistance to serve you with all your transactional problems. With ATL, you can send money fast and securely with no hidden costs. For further details, visit our website https://www.atlmoneytransfer.com/