How can remittance providers collaborate with fintechs and other stakeholders to create value-added services?

To improve the process of remittances, there are several steps that can be taken: 1. Incorporating automated savings and bill payments can ensure that payments are made on time and regularly. 2. Offering micro-insurance options can provide a sense of security to those who are sending money across borders. 3. Providing financial education can help people understand the process better and make more informed decisions. 4. Creating loyalty programs and community challenges can encourage people to make more frequent and larger remittance payments. 5. Offering travel incentives can be an excellent way to reward those who are sending money regularly and provide a much-needed break.

To start with, 'remittance providers' need to be 'FinTechs' in some form if they intend to survive and be relevant. If the core strength of the former is a physical distribution/network for example, then they can offer a complete digital onboarding experience in partnership with a FinTech. This includes KYC, documentation etc. Benefits both the consumer (experience) and the provider (quicker process, centralised data, fewer errors). Additionally if the provider has a user base and wants to monetise thru complimentary services, can tie up with specialist FinTechs for utility payments, top-ups, insurance etc. Eventually however, the core payment service has to be bulit as an internal 'FinTech' expertise by the traditional service provider.

One of the classic challenges all payment providers, including new national payment market infrastructures and new Remittance fintechs/companies, face is that of scaling up adoption in an increasingly competitive and commoditised market - the only way to make economic sense of the business case is to make the payment processing service a utility that scales to settle the highest number of business use cases possible. This behooves upstream integration with multiple channels for payments initiation and business transactions - essentially an open overlay ecosystem feeding the the service. Fintechs play a major role in establishing such overlays & as others mention also services improving pre/run-time/post processing of payments as well.

A clear guideline for seamless remittance across geographies will result in efficient fund transfer and make the whole process a lot more simple and easier..... This is a good initiative by IFSCA

Fintech firms have emerged as significant players in the financial industry, with a particular focus on addressing the challenges and limitations associated with traditional remittance methods. By leveraging technology and forming strategic partnerships, fintech companies aim to create innovative, user-friendly, and efficient solutions for financial services, including cross-border transactions and remittances. To be successful in the fintech space, it is essential to work closely and effectively with Regtech to avoid any irregularities and regulatory breaches.

Regulators play a crucial role in fostering collaboration between remittance providers, fintech, and other stakeholders to create value-added services. Here's how: - Establishing Clear Regulatory Frameworks: Regulators can set clear guidelines that encourage innovation while mitigating risks like money laundering. This provides a safe space for collaboration. - Enabling Open Banking APIs: Regulators can promote open banking standards that allow remittance providers to access customer data (with consent) to offer more tailored financial services. - Facilitating Sandboxes: Regulatory sandboxes can provide a controlled environment for testing new remittance products and services in collaboration with fintechs and other stakeholders.

For me Regulators enact rules and regulations to protect consumers from unfair practices, hidden fees, or deceptive advertising by remittance providers. They mandate transparency in pricing, disclosure of terms and conditions, and dispute resolution mechanisms to safeguard the interests of senders and recipients.

Regulators play a crucial role in upholding the integrity and stability of the remittance system. Their ability to adapt to technological advancements and foster innovation while ensuring compliance with regulatory standards is essential for the continual evolution of the financial sector, particularly in the context of remittances. Effective collaboration among regulators, industry stakeholders, and the general public is vital for the establishment of a regulatory framework that harmonizes innovation, consumer protection, and systemic stability.

Financial institutions are currently facing a significant threat from fintechs and non-bank remittance providers. However, they possess inherent competencies that can be utilized to enhance their services through innovation and collaboration. In this way, banks can not only retain their existing clientele but also attract new customers who seek the convenience and efficiency of contemporary remittance solutions. While it is true that low-hanging fruit is not a bank, and the majority of fintech does not consider users beyond services, added-value services can help banks and fintechs retain and acquire a new customer base.

The role of banks in remittance services is to facilitate secure, efficient, and compliant transfer of funds across borders, while providing personalized customer support and driving innovation in the industry.

Los bancos juegan un papel crucial como puentes entre proveedores de remesas y fintechs, facilitando colaboraciones para crear servicios de valor agregado. Al integrar tecnologías innovadoras y comprender las necesidades financieras de los clientes, pueden ofrecer soluciones seguras, eficientes y personalizadas. Esta sinergia potencia el acceso a servicios financieros más inclusivos y diversificados, mejorando la experiencia del usuario y fomentando la inclusión financiera a nivel global. Además, los bancos pueden aportar su expertise regulatorio y de riesgo, asegurando que las soluciones cumplan con las normativas vigentes.

The remittance market pivots around its customers, whose evolving needs and behaviors exert a significant influence on service offerings and technological advancements. The market's growth is driven not only by competition among providers but also by the intensified focus on greater financial inclusion, literacy, and empowerment of customers. A customer-centric approach incentivizes remittance providers and fintechs to continuously innovate, ensuring that their services remain relevant, accessible, and beneficial to the end-users. However, the majority of fintechs and banks do not consider users beyond reminder services.

The role of customers in remittance services is to initiate transactions by sending money to their intended recipients, ensuring accuracy in the information provided for the transfer, and promptly responding to any inquiries or requests from remittance providers to facilitate the smooth processing of transactions. Customers also play a crucial role in providing feedback to remittance providers, helping to improve the quality of services and meet their evolving needs and preferences.

Stablecoins on the blockchain bridge the financial chasm with instant and low cost international remittance. Fintechs can fund or recieve funds anytime anywhere. This changes everything.

The role of social impact in remittance services is to address the broader societal implications of financial inclusion and economic empowerment. It involves promoting initiatives that leverage remittances to alleviate poverty, improve access to education and healthcare, foster entrepreneurship, and promote sustainable development in recipient communities. By focusing on social impact, remittance providers and stakeholders aim to create positive outcomes that extend beyond financial transactions, contributing to the well-being and prosperity of individuals and communities worldwide.

En LATAM, la migración es un fenómeno que no podemos dejar de considerar, dónde contar con procesos de remesas en línea, transparentes, de bajo costo y de fácil uso, pueden ayudar mucho a todas las personas que han dejados su país de origen en búsqueda de mejores oportunidades. Los ecosistemas de pagos, se basan en tres pilares: la innovación y desarrollos digitales, la monetización o explotación financiera de los productos o servicios ofrecidos y en la inclusión financiera y sana bancarización de los países. En el último pilar, las remesas pueden jugar un rol protagónico e impactar la vida de muchas personas.

Remittances serve as a vital lifeline for many in developing countries, significantly impacting various aspects of social and economic development. Remittance providers and fintech companies, by aligning their operations with sustainable development goals and engaging actively with stakeholders, can amplify their positive social impact. This not only furthers global development agendas but also builds a stronger, more sustainable business model that recognizes the interdependence between economic success and social progress.

For example, Safaricom in Kenya has partnered with various banks to allow M-PESA users to save and earn interest through their mobile wallets. This collaboration enables users to seamlessly transfer money from their M-PESA account to savings products offered by partner banks. Collaboration is key to create value-added services by leveraging technology for faster, cheaper, and more secure transactions.

Remittance providers /Banks can help facilitate the customer data to fintechs along with ensuring secured data not being exposed . The finctechs these days are on a innovation spree and banks can collaborate with their ideas in order to facilitate better customer experience which would in turn increase their customer base . There are multiple fintechs that are leveraging open banking concept . For example : making easy credit card payment app like CRED where we can get consolidated summary of outstanding payment for all the different cards a customer might be holding .