This is a preview of a research report from Business Insider Intelligence, Business Insider’s premium research service. To learn more about Business Insider Intelligence, click here.
Cross-border, peer-to-peer money transfers — better known as remittances — are an integral part of societies around the world, especially in developing markets where receiving funds could mean the difference between life and death for families and community who remain behind. This has resulted in a massive global remittance market, which totaled $575 billion in 2016 alone, according to The World Bank.
However, this pales in comparison to what the future holds for the sector, as globalization creates greater distance between families and digital tools promise to make transferring funds both easier and more efficient.
This evolution is being accelerated by a number of factors, including several wars leading to the displacement of millions, weather-related disasters resulting in the need for financial relief, a massive workforce moving to stronger economies, and increasing reliance on consumer technology, like smartphones.
Digital first remittance firms are leveraging all of these factors to challenge legacy players that have dominated the industry. These firms are able to accomplish this by competing with the likes of Western Union and MoneyGram on fees and usability, and capitalizing on the way people’s expectations have changed with the advent of digital and mobile channels.
In this report, Business Insider Intelligence analyzes the global remittance market as it currently stands by examining how digital challengers are changing the industry and what legacy players are doing to hold them off. The report also discusses what the future may hold as a result of the potential MoneyGram acquisition, which could completely disrupt the traditional remittance model.
Here are some of the key takeaways from the report:
The global remittance industry is massive and yet still growing — …read more
Source:: Business Insider