Getting started with why, how and what

Diving into a Money Service Business (MSB) without conducting proper research and the right finances can be a very overwhelming project. Therefore, we are introducing a series of articles to help and guide business founders or entrepreneurs who are aiming to launch and scale up their MSB in new jurisdictions. The first article starts with defining the business case and consists of 3 key elements: Why, How and What.

Why: Setting the purpose of your business

As with any other business type, it is essential that the purpose of setting up the business is clearly defined as the first and foremost step of the journey.  This means defining the problem statement wherein you need to identify what sort of problems or challenges you are going to address in the market from which you aim to launch the business. There are several examples, such as your target market (whether send or receive corridors), the sort of pain points or problems customers face with the existing players, how you are going to simplify the overall customer experience while also addressing the transfer fees, exchange rates and other pay-in or pay-out factors.

Business owners need to understand the regulatory landscape in the chosen markets as that will enable them to introduce the appropriate products or services that fit within the given regulatory framework and licensing type. It is crucial that business owners consult subject matter experts to understand all the regulations governing the MSB.

How: Requirements to address the challenges identified in the target markets

After completing the ‘Why’ component of the business case, the next step is to address all the requirements the business owners need to consider to establish the business. 

Various requirements need to be taken into consideration such as:

• Having the right technology and tools to manage the business
• Having the key human resources required to launch and run the business
• The type of partnerships needed for providing the relevant services to the customers (such as establishing relationships with money transfer operators, banks and other payment service providers).

The delivery channels also need to be defined, such as whether the business aims to serve its customers via digital channels only (mobile app, web), brick-or-mortar branches, agent-based networks, or a hybrid model.

Last but not least is selecting the right licensing type available in the given market to launch the business. 

What: the products and services offered to the customers

Once the ‘Why’ and ‘How’ elements are identified, the next step is to specify ‘What’ type of products and services will be offered to the customers. Examples could be a money remittance service provided to the customer via mobile app and providing multiple options of pay-in and pay-out.

What next?

Now you’ve read the article, stay tuned for the next in the series that will look at the various money service business licences and the requirements of each. 

If you’re looking to launch a money service business, come and talk to the team at RemitONE. The RemitONE Launchpad Proposal is a bespoke service specifically designed to help new players rapidly launch their money service business and existing players to launch into a new market.

This customised proposal is packed with valuable information and recommended partners you’ll need to start trading, including market and feasibility studies, business plans, costs and timescales so you can plan your launch with confidence.

With over 100 years of combined senior leadership experience in the money transfer industry, RemitONE’s expert consulting team are here to guide you to get you up and running as fast as possible.

Tap into our experts and schedule a free consultation to get started.