Market Research Reports - Ken Research Remittance Industry Analysis | Page 2

of its transactions are currently sent from smartphones, from about 50 countries to over 145 receiving destinations. Investment into remittance based development has grown significantly topping USD 800 Million in 2017 and reaching a value of over USD 350 Million for the first half of 2018 alone. Another major example of the Financial Technology disruption is the evolution of technology based remittance service in Malaysia. Remittance service provider MoneyMatch Sdn Bhd with 5,000 registered users has dealt with about USD 12.6 Million in transaction volume so far. The company’s key benefit being the lowest remittance rates in the market for Malaysia. Traditionally, one would have to pay about 3-4% of the transaction cost for remittance services in Malaysia to Australia, with countries like South Korea, the rate goes up to 7% and more. The company changes this by charging a flat rate of USD 2 for all transactions to Australia, for example. Effectively the rates of the financial technology provider become on average, 10 to 12 times cheaper than traditional remittance providers. This is a major factor that driving growing adoption of mobile, fin tech based remittance in Malaysia and similar markets. The average transaction cost made through non-bank remittance service providers in Malaysia has been lowered to 2.96% as of April 2018. This is compared with the remittance cost of 12% in 2016. Another example being UAE where due to high service charges, about 80% of the inhabitants of the UAE are outside the financial system. Conclusion: Curbing of costs is a major issue that exists in the remittance market which needs to be addressed and financial technology seems to provide an applicable solution. The integration of financial technology can effectively save over USD 15-20 Billion in transaction costs each year which would play a major role in assisting low and middle income countries which rely heavily on the money received through remittance to manage their basic expense and to grow their economy For more information, click on the link below: https://www.kenresearch.com/tag/banking-financial-services-and-insurance/remittance/177.html Contact Us: Ken Research Ankur Gupta, Head Marketing & Communications [email protected] 0124-4230204