How Fintech is Revolutionizing the Remittance Industry
BBC describes the Fintech Industry, or Financial Technology Industry as “the division of financial industry focused on utilizing technology to improve financial activities and outcomes” (BBC, n.d.).
What is fintech and how it is fuelling growth across economies in the world?
Fintech is enabling the financial service companies to expand in a sustainable manner, while simultaneously boosting the growth of the financial services industry. According to a survey consisting of 750 executives across different countries, 95% of the companies in the financial services sector are gaining advantages from deploying fintech services (Clague, 2020). The presence of fintech is not just limited to the financial service industry – sectors like logistic services, hospitality, healthcare, retail are all leveraging fintech solutions in their business models to catalyze growth.
According to EY’s Third Biennial Fintech Adoption Trends Survey on 27,000 consumers, about 64% of global consumers have adopted fintech services, while 96% of the consumers are aware of the fintech services, and 75% of the consumers have made use of fintech services. These numbers, show the increasing adoption of fintech services by consumers, suggesting growing trust of the fintech industry among consumers. The fintech industry shows a promising future ahead, with no sign of letting up.
Bringing Flexibility to Transactions
Fintech is helping solve the critical issue regarding transactions-complications surrounding traditional payments. Traditional payments can often be cumbersome and add a burden on a company’s finances and resources. This is especially true in case of domestic payments to vendors/suppliers or even cross-border payments when companies may have to incur extra costs to make physical payments.
Fintech services, on the other hand, provide a cheaper and more convenient alternative to for transactions, while ensuring instantaneous transactions. Apart from cost-cutting, fintech also serves to improve the quality financial services. Fintech areas are largely unburdened by regulators, legacy IT systems – areas that interfere with the smooth functioning of financial services. Moreover, the emergence of fintech has instilled diversification, thus creating a more stable and credit landscape. This is because internet based firms tend to be less geographically concentrated than brick-and-mortar stores, thus diversifying the overall risks.
An Emerging Source of Liquidity
Fintech solutions are helping integrate supply-chain solutions by providing companies with greater liquidity. Companies constantly face short-term liquidity issues that traditional banks are most often not able to solve. On the contrary, fintech companies provide buyers and sellers with a more liquid alternative and greater consistency in timings of payments. While traditionally, suppliers often had to wait months to receive their payments, they now have viable alternatives like invoice discounting supply chain financing and factoring.
Where We Fit In
Hawking Instamo, a Vietnam based payment platform company, aims to inject the fintech revolution to Vietnam as well by enabling smoother cross-border transaction experiences for its customers across the world. Instamo surpassed ten other fintech start-up competitors to become the winner of Vietnam’s Fintech Summit 2019 Competition. With a plan to provide their product to more than 160 countries, Hawking Instamo aims to provide an alternative payment solution over the traditional cumbersome payment methods.