Issue link: https://maltatoday.uberflip.com/i/1097443
28.03.19 17 FINTECH THE fi nancial services industry has seen remarkable changes since the turn of the century. In common with most industries it has been transformed by the in- ternet and digital technologies, which in this context means fi - nance technology, also known as fi ntech. As a result, banks and other traditional fi nancial play- ers are being challenged by new service providers who can har- ness the latest technologies and off er alternative business models and better propositions. Remittances or international money transfers are one branch of fi nancial services where fi n- tech has a far-reaching eff ect – quite literally. Remittances connect people and shrink the world. ey have evolved in parallel with new technology, growing signifi cantly year-on- year. Many new operators have entered the marketplace and developed global businesses on the strength of digital enable- ment and particularly mobile commerce. Today, if you want to transfer money anywhere in the world, you no longer have to rely on fi nancial institutions with their expensive rates and often slow delivery times. e new fi nancial players, the money transfer businesses with global footprints, have grown rapidly because they off er com- pelling advantages for the mil- lions of expats who need to transfer funds regularly to their home countries. eir service is based on speed, convenience, versatility and cost effi ciency. And what makes all of this pos- sible is the way technology and industry-wide partnerships have redefi ned how money can be sent and received. Money transfer businesses off er a wide range of options such as cash payouts, account credits, mobile wallets and even door-delivery services. Fintech has helped increase and refi ne the transfer options. e ability to reach more people in more places, particularly those who were previously fi nancially ex- cluded, has been reinforced through partnerships that are creating powerful fi nancial net- works. e result is a new fi n- tech-based infrastructure that can transfer money more quick- ly, effi ciently and economically than ever before. Shaped by money transfer busi- nesses, this infrastructure spans nearly every country and region, and includes thousands of agent locations. It integrates banks, non-banking institutions, telcos, fi ntechs and other market play- ers, forming a remittance com- munity that optimises cross-bor- der transfers and collaborates on new products and services. One of the most important developments is mobile mon- ey. Remittances today connect people in regions that are often unbanked or underbanked, and the growth of mobile money and particularly digital wallets has been vital in making money transfers more accessible and convenient. is is proving a fertile area for collaboration be- tween money transfer organisa- tions and other businesses. anks to the explosive growth of internet-enabled smart devic- es, digital remittances are now mainstream. An international money transfer can be made from a mobile phone or other connected device wherever you are in the world and at any time. is fl exibility allows money transfer organisations to build networks across Africa, Asia, Europe and the Americas and mobile wallets are a growing part of the service off ering. Mobile technology that adapts to customer needs is the foun- dation for a more digitally-con- nected payments landscape as it promotes fi nancial inclusion. Moreover, no matter whether customers are in rural areas or urban centres or whether remit- tances are sent via digital wal- lets, account transfers or even straight to someone's front door, cost effi ciency will match speed and convenience. Everyone wants money transfers that are economical as well as practical. Today's money transfer organi- sations are conscientiously com- mitted to bringing down costs as well as increasing connectivity. Looking to the future, we are sure to see more partnerships to exploit the benefi ts of emerging technologies. Not least is block- chain, which could transform fi nancial services. While block- chain applications are still at an initial stage, there are many promising initiatives worldwide, and it is clear that the technol- ogy presents a strong use case for faster, cheaper, more secure remittances. 5G, the fi fth generation of mo- bile networks, is another devel- opment that is likely to have a big impact on all types of pay- ment. However, although 5G is due to start rolling out this year, it will be a long time before its benefi ts are felt worldwide, and particularly in emerging markets and countries where remittances are most needed. It will take sev- eral years to develop the right in- frastructures for 5G, but today's collaborative model for money transfers will certainly help to accelerate the deployment of the new mobile networks. International money transfer organisations have changed the model for remittances. rough collaboration with fi ntechs and other third parties, they will continue to innovate and evolve, bringing fast, fl exible, cost-eff ec- tive remittances to more people worldwide. The future of fintech in money transfers Fintech is a multi-billion dollar industry that's changing everything from how we make purchases to how we get loans The ability to reach more people in more places, particularly those who were previously financially excluded, has been reinforced through partnerships that are creating powerful financial networks