Dubai PR Network, Online Press Release from Dubai and Middle East
 
Money, Business & Investments(Banking & Investments)
Filter PR by
  
FERG: Fintech unlocking value for consumers and remittance brands
 
FERG: Fintech unlocking value for consumers and remittance brands

Digital and in-app transactions can reach unbanked audiences with convenient, fast and low-overhead services

Dubai, UAE, March 6, 2017:  The Foreign Exchange and Remittance Group (FERG), comprising businesses engaged in the money exchange and remittance industry, believes the rise of fintech in the GCC can help the remittance sector serve wider audiences faster through digital-first channels. The announcement comes as the Fintech industry booms globally and is also strengthening its presence in regional markets, albeit at a slower pace.

In 2016, the global fintech space breached the 1,000-company threshold and raised USD 105 billion in total funding to hit a total worth of USD 870 billion in value.  

FERG’s market analysis indicates that the innovations being fostered by agile fintech startups can help address key areas that hamper conventional money transfer operations. 

“We’re looking at fintech advantages to help address connectivity between exchange houses and the banking system. While many of our members have achieved very close integration with international banks, some corridors where customers request direct account credits can still take multiple days. Transactions have to be processed by remittance houses and forwarded to banks, which can result in delays. We understand that remittances are very time sensitive, and are looking forward to technological solutions to the issue. We see fintech playing a role here,” says FERG Joint Treasurer Harish Pawani.

Peer to peer money transfers could do away with the traditional role of the bank in the financial chain, and move credits seamlessly between phone apps – creating avenues for instant money transfers. Such apps could also cater to blue-collar worker audiences that often don’t meet the minimum criteria for bank accounts. 

“Fintech could help remittance brands empower the unbanked population, such as the GCC’s blue-collar labour cadres who usually don’t have access to banking services. Moving to in-app transactions could extend them some of the same facilities that banked customers take for granted,” Pawani adds. 

Fintech could also enable brick and mortar remittance houses to move to an online presence, which would reduce the costs of expanding their physical presence. At present exchange houses offer retail rates for regular consumers and graduate to favourable bulk rates for power remitters and corporate clients. Lowering costs of physical expansion could enable a competitive universal rate for all clients. Opening online channels could also reduce queues and transaction times at outlets. 

“Digital channels are the equivalent of opening a branch online. Apart from efficiency gains, it also lowers investment overheads for exchange houses. These cost savings can then be passed on customers in the form of lower transfer fees and more competitive exchange rates,” Pawani notes. 

Fintech-enabled digital channels and apps can also enable a host of automated functionality – such as being able to set exchange rate thresholds to make a transfer. Rather than power remitters constantly monitoring exchange rates manually, they can schedule transfers back home when the exchange rate hits a predetermined mark. 

“We see fintech eventually enabling a range of convenient automations for clients. They could time remittances to trigger at a certain exchange rate, or on a given day every month. Digital channels can also result in full fee transparency and a streamlining of the financial value chain,” he explains.

However, FERG doesn’t see an immediate substitute to conventional exchange houses, with some 90% of the industry still operating a bricks and mortar model. Strict regulations, licensing needs and anti-money laundering standards mean that fintech startups are more likely to collaborate with exchange houses to handle transactions than try to set up their own networks. FERG member exchange houses are also developing their own fintech initiatives to deliver faster and better customer experiences. 

“Existing financial institutions and conventional remittance houses are considering building their own technology layer to cater to the online market, or are working alongside fintech technology. This will help lend fintech the scale, credibility and consumer trust needed to succeed, and will help conventional institutions become more agile and customer-centric,” concludes Pawani.   

Posted by : Dubai PR Network Editorial Team
Viewed 5441 times
PR Category : Banking & Investments
Posted on : Monday, March 6, 2017  11:37:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : National Bonds Collaborates with Smart Dubai Government via ...
Next Story : DAFZA achieves 16% net profit growth in 2016
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
LG's Connected Technology Puts the World at Your Fingertips During Your Holiday Vacation [32135-Views]
Chaumet est une fête - Chaumet is a feast : High Jewellery Collection HJ 2017 [18019-Views]
New Collections at Grand Optics for Summer 2017 [12914-Views]
Elemis new products review [12188-Views]
Chloé eyewear - Vintage inspiration, luxurious details & a seventies feel. [9284-Views]
Salvatore Ferragamo Eyewear New Collection [8729-Views]
PUMA Football Launch 23 New Club Kits [8503-Views]
Ulysse Nardin Jade “Lionfish” [8430-Views]
Top Ten in GC for UAE Team Emirates' Meintjes After Stage 12 of Le Tour [7326-Views]
True Blue: Kiehl's Beloved Blue Herbal Formula Continues 50 Year Crusade Against Acne [6808-Views]
UAE among the top spenders globally on beauty products forking out $239 per capita in 2016 [6734-Views]
LG OLED TV Wins Fourth Consecutive CE Week TV Shootout Title [6472-Views]
SAINT HONORE Charisma Twist is Ideal for the Stylish Lady [6368-Views]
Winners of Joyalukkas 60 KG gold, 60 days of winnings announced in last few days of promot... [6167-Views]
NRI Teenager awarded India's Most Distinctive Global Indians Award [6015-Views]
Louis Moinet: Jurassic Watch - A 150-million year heritage on your wrist [6002-Views]
BAUME & MERCIER: A leather with a promising future for Petite Promesse [5917-Views]
Chef Tarek Turns on a Cooking Masterclass in Dubai Using Fresh Australian Produce [5466-Views]
Bubble lines in mother-of-pearl and superluminova add sparkle to summer [5148-Views]
Marks & Spencer Launches Back To School Collection - Rule Back to School [4654-Views]
alice + olivia Fall Winter 2017 [4618-Views]
Zadig & Voltaire Fall Winter 2017: Men and Women [4435-Views]
Alstom presents to RTA a full size train Mock-up for the Route 2020 project in Paris [4380-Views]
ADNOC Distribution Opens Seah Al Saram Service Station in Fujairah [4374-Views]
B4U Plus Ranked Top Asian Channel in The Middle East [4258-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories