How Foreign Workers Benefit from Fintech
Fintech is actually a combination of the phrase “financial technology”, It refers to the use of innovative technology to improve and automate the delivery and use of financial services. Today, fintech helps companies and consumers better manage their financial operations, processes, and lives through specialized software and algorithms that are used on computers and, increasingly, smartphones.
How is the industry like in Singapore?
In Singapore, the fintech sector has been a great growth story with more than 400 fintech firms in the country and a lot more are being added every year. More common and frequently used apps today include: Paypal, GrabPay, Paynow. The total value of fintech deals from January to September in 2019 was a 69% increase from US$435 million in the same period last year.
As can be seen, Singapore is positioning itself to take full advantage of this emerging new market since its introduction.
How has it disrupted the local industry of banks?
A word that is often closely associated with fintech would be ‘disruptive’. Using simple technologies that any layman should has access to, anyone can tap on fintech to perform a wide range of financial services.
1) Easier to perform financial transactions
Take for example money remittance services which was once dominated by banks, it is now a fintech dominated market. Users are now able to send money overseas without the need for physical infrastructure like traditional banks. Anything consumers need done, can all be accomplished with just a few clicks on a mobile app, like Instamo. In doing so, fintech has taken business from banks and large financial institutions and, in doing so, has ‘disrupted’ the natural order of things – all just through an app.
2) More efficient financial service as compared to before
Using the same example of money remittance, traditional brick-and-mortar banks were the monopoly of international money transfer the only authorities offering financial services in the past. This allowed them to offer high and non-competitive FX rates to users. In addition, being a profit driven business, banks could charge many hidden fees and foreign workers had no choice but to comply as sending money home was a necessity.
Here at Instamo, we understand how hard it can be to make a living abroad. We want to make sure money transfers are made easier and smoother for everyone. With knowledge and prowess of fintech, this is why we make it our top priority to help foreign workers ensure that as much of hard - earned money made is able to reach their families back home at competitive and transparent rates. ALWAYS.