Financial Technology and Remittance- Lotus Remit

FinTech is changing the financial landscape, offering fast, secure, transparent cross-border remittance to organizations around the globe. Many families around the globe especially the ones in developing nations depend on the money sent by their migrant relatives to a large extent. One in every nine people globally sustains on these funds sent back by the migrant workers. On a large scale, international remittance has become a prime contributor to the Gross Domestic Product of many low- and mid-income countries. Whereby in 2018, more than 200 million migrant workers sent over $689 out of the amount of $529 billion went to developing countries. The amount sent by the migrants constitutes only 15% of their total earnings (digipay.guru).

Foremost, we talk about global remittance being an expensive affair and why is that so. It is indeed true that global remittance services are expensive as they come with a bunch of hidden charges that people don’t realize at times. According to the records of the world bank, the average charges levied by the global remittances is approximately 7% percent of the funds sent. This leads to a large amount of $40 billion which would disappear annually in the form of transaction fees and hidden charges for remittances. There are many factors that make international remittance costly. There are factors such as Forex spreads, which is the difference between a forex broker’s sell rate and buy rate when exchanging or trading curries. There is also the difference between the conversion rate or inter-bank currency and the rate quoted by the bank. Moreover, there are processing fees for each transaction. Compared to the bank, non-bank remittance services have competitive offers.With that being said, here at Lotus remittance, the best comparative charges are always provided for overseas money transfers. The services provided by Lotus are completely transparent and this helps one save on transaction charges and unnecessary charges while transferring money overseas.

Furthermore, Fintech has rather brought about a huge improvement in global remittance. Financial Technology or better known as FinTech is the technology that delivers financial services through software, such as online banking, mobile payment apps, or cryptocurrency. Over recent years, there has been significant growth in some FinTech international money transfer companies. Many companies have also attracted venture capitalists. The advent of these and other several FinTech players has certainly changed the landscape of international remittance. People all over the globe are choosing FinTech remittance services as they are easier and much more user-friendly. It has made it easier for the process of transfer to take place with lesser hassle and more efficiency in a shorter time span.

In addition to that, there are many factors that have made FinTech Popular. Primarily, they are known to be faster than banks. As banks can take up to a few days to transfer money, FinTech apps take a relatively shorter time. This saves time for senders and receivers and increases efficiency in the long run. Secondly, FinTech payment solutions started providing competitive exchange rates which were quite close to the exchange rates which were quite close to the existing market rates. FinTech is also the reason for lower-cost remittance. Many remittance FinTech companies process remittance requests for free for a few selected regions. FinTech also refrains from changing add fees such as amendment charges, cancellation fees, and other hidden charges. Thus, resulting in an overall lower cost. Finally, there are small or no transfer fees in FinTech remittance companies.The transfer fees are the amount a sender needs to pay. Generally, banks have a higher transfer fee. Remittance FinTech companies don’t take any transfer fees for the residents of most countries.

In conclusion, FinTech has made a huge shift in international remittance. Any further improvement in Financial Technology can only bring about positive effects to the financial industry, let alone the international remittance industry. It has changed the realms of financial markets and money transfer. International remittance which was once seen as an expensive affair has only been available to a small portion of the population and has now enabled everyone to use it at low cost or no cost at all, thanks to FinTech. Here at Lotus remittance, we use updated FinTech software to give our customers the best service and efficiency possible without a doubt.