How fintech has benefitted foreign workers
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, tapping on fintech, one is able to send money overseas without the need for physical infrastructure like traditional banks. And all these can even be done with just a few clicks away on mobile apps. In doing so, fintech has potentially taken business from that bank and, in doing so, ‘disrupted’ the natural order of things – all just using an app.
2) More efficient financial service as compared to before
Using back the same example of money remittance, In the past, traditional brick-and-mortar banks were the monopoly of international money transfer and were the only authorities offering financial services. This allowed them to offer poor 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 remitting 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.