The Global Money Transfer Industry: A Case For Collaboration

Evolving with disruption

The money transfer industry globally has entered a period of significant change, spearheaded by the evolution of mobile technology and growing demand for digital tools that help us manage our money faster and smarter.

Digital disruptors such as peer-to-peer lending services, mobile apps and blockchain have shifted the market, offering borderless accounts combined with speed and transparency.

Powering these disruptors are new technologies like artificial intelligence, big data and robotics, which are changing the customer experience; providing unprecedented insights into customer behaviour that help deliver a more seamless money transfer experience.

For incumbent players in the market, this new reality presents an opportunity. Businesses should consider leveraging these new technologies to offer customers greater choice and improved services.

So, how do we best go about this?

Collaboration, not competition

Industry disruption does not necessitate a battle between the incumbents and the disruptors, but instead presents an opportunity for collaboration to drive real change and better outcomes for customers.

Importantly, collaboration has the potential to foster financial inclusion, creating new opportunities for the world’s two billion “unbanked” – those that make little or no use of formal financial services. More than ever, technology is helping businesses serve this often-ignored segment of the market.

The World Bank predicts the value of global remittances will grow by 3.4% to USD$616 billion in 2018. In order for the industry to continue to thrive, businesses will be better served by coming together to redefine the future of money transfers.

According to PWC’s Global FinTech Report, the most widespread form of collaboration with fintech companies is joint partnership, which can allow incumbents to strengthen their capabilities and introduce solutions or products into the market more quickly.

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Source: The Global Money Transfer Industry: A Case For Collaboration | Canstar