Transferring of money to friend or family member in another country is known as remittances. Major portion of population is currently depend on this money, which is often used for the food, housing, education, basic house hold goods and health care costs. As per the World Bank report, the international remittances expected to reach above USD 500 billion in 2017, the global community is doing more research in the development of the technologies that will improve the efficiency, safety and ultimately positive impact of these cross border transactions. Transferring money from one country to another country is very much expensive because there are limited connections between financial institutions and systems. But in the recent trend development in the technology eliminate the traditional remittance mean waiting in line for several hours just to get money wired to pay bills, and they almost always come with loads of fees. According to the report analysis, ‘Remittance Market Research Report’ suggests that change in the technology of transfer of money has been changing the workflow and all the processes in the international money transfer industry and it is also expected that the market remittance have a significant growth with the more innovations in the technology.
In the present era urban population has increases the usage of mobile and digitization of money are the two biggest opportunities that are diversifying the way of transferring the money. In the developed and developing countries the usage of smart phones is uncontrolled. In the research it is observed that the number of smart phones users are growing worldwide and will surpass 2 billion in the coming years. Across the globe, the usage of internet technology is growing rapidly in the modern trend which strictly reduce the cost and efforts associated with sending money back home. The introduction of mobile technology is helping to break down these issues of transferring the money from one country of another country. With this technology of mobile and internet anyone can now transfer the money very easily and quickly. Digital Remittances can help people everywhere make their lives easier by allowing them to do what they want to do with their money. Therefore, the technology of internet in the remittance industry plays significant role in today’s trend. With the help of internet technology, the growth of digital remittances market is driven by rise in automation and digitization, less time consuming and reduced remittance cost and growth in adoption of financial services. Moreover, many companies are offering the latest integrated technologies at a reasonable cost which are expected to drive the market efficiently. According to the report analysis, ‘Remittance Industry Research Report’ suggests that integration is the key to advancement in technology in the global digital remittance system market and expected to grow more significantly with the more innovations.
The remittance industry is majorly consolidated and concentrated among Money Gram, Western Union and others. Moreover, the remaining portion of market is fragmented with smaller players which are making market more competitive and the global remittance industry is undergoing with the significant change in the technology of internet. Companies such as Ripple are looking to change the way cross-border remittance is done. It is observed that Ripple has tied up with 25 banks globally. Moreover, Earth port is also a leading player in this market which got approvals from Reserve Bank of India (RBI).
According the research of World Bank, India is the largest country of Migrants remittance inflows with USD 68,968 million and percentage of 11.2% in the world. However, Mexico, France, Pakistan, China, Nigeria, Germany, Philippines, Bangladesh and Vietnam are the top countries which receives significant amount of remittance volume. In UAE the major transfer of money is done with Ripple for developing a remittance transfer mechanism that would be faster, cheaper and efficient to the consumer.
Remittance industry will grow rapidly as the transfer of money can be done very easily with the more innovations the internet technology and it is also proof that transfer of money with the internet technology is secured and most efficient way of transferring. Therefore, the market of remittance is growing rapidly with the technology of internet in the coming years.
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Ankur Gupta, Head Marketing & Communications