Innovation in Payments and Remittances (IPR) Awards 2023

RemitONE is delighted to announce the winners of the 2023 Innovation in Payments and Remittances (IPR) Awards. 

Start-up of the Year Award 2023 

Winner: PayOnlime 

Honourable mention: Lollicash 

Scale-up of the Year Award 2023  

Winner: Clear Junction  

Honourable mention: Remit Choice Limited 

Leader of the Year Award 2023 

Winner: Jones Amegbor, Founder & CEO (PayAngel)

Excellent Customer Service Award 2023 

Winner: Trust Payments & Unity Link 

Innovation Award 2023  

Winner: Currencycloud 

Social Impact Award 2023 

Winner: HelloPaisa 

Honourable mention: PayAngel 

All entries were thoroughly evaluated by our esteemed judges comprised of global senior experts in the payments and remittance industry:  

• Leon Isaacs, CEO & Founder, DMA Global
• Kathryn Tomasofsky, Executive Director, MSBA
• Lindsay Lehr, Managing Director, PCMI  
• Rob Ayers, CEO, Fintech-Advisors
• Sharon Gibson, CEO, JMMB Money Transfer
• Veronica Studsgaard, Founder & Chairman, IAMTN

After the initial assessment, the award finalists were unveiled in August 2023. This was followed by the second stage, during which the judging panel reviewed all the finalist entries and selected the winners in each category through an anonymous scoring method. 

The award winners were announced at the IPR Awards ceremony during the IPR Global Hybrid 2-day event on Tuesday 26^th September, in London, UK. 

From Left to right pictured: (Top left) Larissa Rocha, Wayne Gould, Adel Taher, Jones Amegbor, Sohail Nizami and Joseph Lamptey. (Bottom left) George Boateng and Lindsay Lehr. (Top right) Rob Ayers and Adel Taher. (Bottom right) Sohail Nizami and Leon Isaacs.

About Innovation in Payments and Remittances (IPR)  

In 2018, RemitONE launched Innovation in Payments and Remittances (IPR) to bring together various industry supply chain members to drive positive change. Through events and research reports, IPR brings together senior business leaders dedicated to enhancing the industry, enabling them to think big, share best practices, engage, learn, discover, create opportunities and shape change. With the power of collective insight, we can push innovation and industry growth boundaries and benefit from better outcomes. 

The first IPR event was held in the iconic London landmark, The Shard. In 2021, due to the pandemic, the event was hosted online and attracted over 3,000 registrations worldwide. The IPR events are organised throughout the year to help industry stakeholders, visionaries and business leaders make informed decisions that ultimately benefit the consumer. 

About RemitONE  

RemitONE is the leading provider of end-to-end money transfer solutions for banks, money transfer operators (MTOs) and fintech start-ups worldwide. Our award-winning money transfer, compliance software products and consulting services – including MSB licensing, bank account provisioning and connections to our clients and partners – are tailored for the global money transfer market.  

Organisations of all sizes use our platforms to run their remittance operations with ease and efficiency by reaching out to their customers via multiple channels, including agent, online and mobile.  

For more information, or to access all the photos from the IPR Awards ceremony, please contact marketing@remitone.com 

Video | Managing Anti Money Laundering (AML) and Compliance for your Money Service Business

To ensure the smooth and secure operation of your business, it’s essential to be diligent in navigating AML requirements while remaining compliant with the latest regulations in your operational regions. In our third instalment of the ‘How to Start Series,’ Ibrahim delves into one of the fundamental pillars of your Money Service Business (MSB): Anti-Money Laundering (AML) and Compliance, he guides you through the essential steps such as:

• Implementing a risk-based strategy tailored to your products/services.
• Establishing a comprehensive AML and compliance framework, including its key components
• Selecting the appropriate software technology that has the right capability to support your needs

Find out the insightful strategies to safeguard your MSB against potential threats, watch the full video now.

Ready to dive deeper into launching your own MSB?

Contact our expert consulting team at RemitONE today and organise a free 30-minute consultation. Let us guide you towards success and help you get your money service business up and running as fast as possible. Schedule a free consultation with our experts:

Trust Payments Partners With Innovation in Payments and Remittances (IPR)

We’re thrilled to announce that Trust Payments, a leading global payments company, will be a Platinum Sponsor for the upcoming Innovation in Payments and Remittances (IPR) Global 2023 event. Explore the exclusive article below directly from Trust Payments, where they explain how to take your remittance business to new heights and unlock its full potential.

Unlocking Potential: How Collaborating With a PSD Agent Boosts Your Remittance Business

Remittance, the transfer of funds by foreign workers to their home countries, plays a critical role in the global economy. The World Bank reported that in 2022 alone, the money remittance business grew by an estimated 5% to $626 billion, making it a bigger financial inflow than foreign direct investment. 

And as the world turns increasingly digital, the online money remittance sector is anticipated to grow exponentially, thus reflecting the significant role it plays in global economies. However, operating a successful money remittance business comes with its fair share of challenges, including regulatory compliance, transaction costs, and building customer trust.

In this article, we will explore how collaborating with a PSD (Payment Services Directive) agent can significantly enhance your remittance business and how to leverage their expertise and expand your business reach.

Key challenges of remittance businesses

Despite its global importance, the remittance business grapples with several challenges. Regulatory compliance is at the forefront, as companies must adhere to a complex web of local and international regulations. These laws aim to combat illicit activities like money laundering, but complying with them can be costly and time-consuming.

Furthermore, high transaction costs, driven by fees for currency conversion, transfer processing, and other service charges, can deter potential users. Lastly, gaining customer trust is critical. The international remittance business involves moving people’s hard-earned money across borders, a process fraught with risk and anxiety for customers. Maintaining transactional security while offering a smooth user experience is thus vital to business remittance services.

What is a PSD agent?

The Payment Services Directive (PSD) is a European Union regulation that oversees payment services in the internal market. A PSD agent, authorised by the Financial Conduct Authority (FCA), is a business that provides financial services on behalf of another company under the PSD legal framework. 

PSD agents are under the authority of a licensed e-money or payment institution that is fully responsible for their actions.

Joining Forces for Collaboration & Business Growth

For remittance companies, collaborating with an FCA PSD agent can be a game-changer, providing distinct advantages. PSD agents are skilled navigators of the complex legal requirements, licenses, and anti-money laundering regulations. Their understanding of compliance minimises regulatory risks, freeing remittance companies to focus on their core operations.

Moreover, PSDs can help mitigate fraud and ensure transactional security. They employ sophisticated technologies and algorithms to detect unusual patterns and thwart potential fraudulent activities. Their expertise in this realm significantly bolsters the credibility of the remittance business, winning customer trust.

Here are three additional benefits businesses can gain from partnering with a PSD agent:

1. Increased technological capabilities

PSD agents bring to the table robust technological solutions. They provide secure, reliable payment platforms that integrate seamlessly with existing systems, utilising APIs for flexibility and interoperability. 

In addition, they offer data analytics capabilities, supplying crucial insights into customer behaviour and market trends. This valuable information can inform strategic decisions, supporting the growth and competitiveness of the remittance business.

2. Streamlined transaction monitoring, reporting, and customer support

Collaborating with a PSD agent brings efficiencies in transaction monitoring and reporting. They possess refined mechanisms for tracking and documenting transactions, ensuring all activities are compliant and traceable. Additionally, they offer comprehensive customer support services, enhancing the customer experience and fostering loyalty.

PSD agents have sophisticated systems for tracking transactions and generating comprehensive reports that comply with regulatory standards. 

They document every transaction in detail, ensuring traceability, and present this data in user-friendly, accessible formats. This organised, precise reporting enables remittance businesses to have clear oversight of their operations, which in turn helps them identify patterns, track growth, monitor compliance, and make data-driven decisions. 

3. A broader network

A partnership with a PSD agent can significantly expand the reach and network of your remittance business. With their international affiliations, PSD agents can help extend your services to new markets, augmenting your customer base. This geographical expansion boosts revenue potential and reinforces your standing in the global remittance arena.

How to Get Started with a PSD Agent

Collaborating with a PSD agent can significantly boost your remittance business by addressing the challenges faced in the industry, such as regulatory compliance, transaction costs, and customer trust. 

By leveraging a PSD agent’s expertise, technological capabilities, and network, you can navigate complex legal requirements, mitigate fraud, streamline operations, and expand your business reach. 

At Trust Payments, we have over 20 years of experience supporting financial services institutions with fast settlements and high approval rates. Our overnight settlement service makes remittances faster. We offer instant pay-in and pay-out functionality and a seamless payment experience for your customers.

If you’re ready to take your remittance business to new heights and unlock its full potential, we encourage you to contact our expert team today!

RemitONE Winners of the Remtech Innovation Remittance Solution Award at GFRID | United Nations Summit in Kenya, Africa!

We are delighted to announce that RemitONE has secured the prestigious Innovation Remittance Solution Award at the RemTECH Awards 2023 – GFRID | United Nations Summit in Kenya. This incredible achievement underscores our commitment to revolutionising the payments and remittance industry through cutting-edge solutions.

The RemTECH Awards, organised by CrossTech and held as part of the GFRID | United Nations Summit in Kenya, served as a platform to honour remarkable achievements and advancements in the fintech industry. Over three days, industry professionals from around the globe congregated to celebrate and engage in an enlightening conference.

Our success in the Innovation Remittance Solution category can be attributed to the groundbreaking tools we have developed. Notably, our Multi-Online Remittance Manager™ and Multi-Mobile Remittance Manager™ have played a pivotal role in advancing financial inclusion. These game-changing solutions bridge the gap between the banked and unbanked populations, providing greater accessibility and convenience for money transfers through our digital innovations.

We had the privilege of being assessed by esteemed judges who acknowledged the significance of our innovation. Leon Isaacs, judge and CEO of DMA Global, presented us with the award and praised our approach. He emphasised, “RemitONE has seen a problem and looked at various solutions and put them together in a way that truly works for the people who use their services or could utilise their services, which I think is innovative in many ways.”

Representing RemitONE at the event, our Managing Director of Africa, Ababacar Seck, accepted the award and delivered an inspiring acceptance speech. He reiterated our commitment to empowering clients, including banks, money transfer operators (MTOs), startups, and central banks, with innovative solutions tailored to their specific needs.

This award serves as a testament to our relentless pursuit of innovation and excellence. At RemitONE, we remain dedicated to shaping the future of the payments and remittance industry and improving the lives of migrants and their families worldwide.

To learn more about our award-winning Money Transfer Software reach out to us at sales@remitone.com.

Building Operational Resilience in a Digital Industry: Security, KYC and Compliance

Operational resilience has become a critical concept for businesses in the digital age, where disruptions can occur at any moment, and the impact can be significant. To ensure operations are delivered through disruption, organisations need to be prepared, adaptable, and ready to respond to any unforeseen events whilst staying compliant and secure, but how? We gathered our experts to discuss exactly that.  

Moderator: 

• Oussama Kseibati, Associate Sales Director, RemitONE 

Our panellists include: 

• Kathy Tomasofsky, Executive Director, MSBA  
• Richard Spink, Sales Director – Channels & Partnerships, GBG  
• Ibrahim Muhammad, Payments Consultant, Finxplor 
• Nadeem Qureshi, CTO, USI Money 

What is Operational Intelligence? 

Before we dive into the key pillars, let’s first define operational intelligence.  

Operational intelligence refers to an organisation’s ability to adapt and adjust operations during disruptions, ensuring they are well-prepared for unexpected situations. It differs from disaster recovery and business continuity plans, as it focuses on proactive measures for operational optimisation rather than reactive responses to disruptions. 

What are the key pillars of operational resilience?  

Based on the inputs from Nadeem and Ibrahim, the key pillars of operational resilience are as follows: 

1. Prevention: Proactive measures taken to prevent or minimise the impact of disruptions or shocks to business operations. 

2. Preparation: Having proper measures in place to respond to any unforeseen events, including identification of critical business services, and ensuring they cause the least disruption to the ecosystem. 

3. Robustness: Measures taken to minimise the risks and interruptions caused by the occurrence, and to ensure continuity of operations. 

4. Recovery: Ability to recover effectively and efficiently. 

5. Adaptation: The ability to adapt to changes in the environment and to be resilient in the face of challenges and uncertainty. 

6. Learning: Continuous learning and improvement from past experiences. 

To sum this up, having a complete framework in place to protect consumers, ensures market integrity, and safeguards vulnerable customers, which is key for operational resilience. 

Why is it important to have operational resilience?  

Operational resilience has always been important, especially in recent years, where the recent pandemic has brought it into sharp focus. It forced organisations to adapt quickly and left a lasting impact on the business world. Some changes include the organisation’s employees working from home and amending their supply chain processes. 

This also meant regulatory bodies like the Financial Conduct Authority (FCA) had to be more vigilant and ensure that firms are capable and ready to handle such unplanned situations. Similarly, companies themselves have a responsibility to have measures in place to ensure that they are prepared for anything that comes their way. 

So, what are some of these measures? Employee safety is a top priority, as well as ensuring that all people processes are up-to-date and robust. Companies should aim to have agile systems in place to enable them to pivot quickly when needed, and investing in up-to-date technology is a smart move to ensure you’re able to operate seamlessly even in the face of disruption. 

Kathy pointed out that some American companies do not pay attention to small details such as training staff on email scams and viruses. Therefore, establishing new procedures is vital to continually evolve the businesses safely. This also builds good business practices and saves time and effort in the long run, as you’ll already have procedures in place to deal with unexpected interruptions. Being prepared also helps identify potential risks and plan accordingly, minimising damage when things go wrong. 

But the benefits go beyond just risk reduction. By ensuring that every department within your organisation is on board, you’re creating a culture of readiness and adaptability that can help your business thrive in the ever-changing landscape.  

What challenges do firms face in developing the required framework for operational resilience?  

One main challenge Nadeem addresses is the struggle many organisations face when trying to grasp the meaning of operational resilience – they often view it as another part of their continuity or disaster recovery plans when it is, in fact, a distinct and complementary approach. 

Another common misconception is that companies need to create a whole new department and invest a considerable number of resources, time, and money into operational resilience. In reality, it’s more about building on existing policies and improving them in stages over time. It involves identifying gaps, assessing risks, and continuously evolving and adapting to new challenges. Companies also fail to reassess if the technology they have access to or are currently working on is both robust and future-proof. 

Ibrahim also identified post-pandemic issues that businesses are still dealing with, such as developing the required framework for operational resilience in the post-pandemic scenario. These include sudden shifts in how business is conducted, which can lead to losing key resources, an inability to serve customers through offices, and financial constraints. Additionally, there are regulatory requirements that need to be addressed, adding further operational burden to businesses. 

What is digital ID? Why is digital ID necessary? How does it impact KYC and AML? 

Digital ID is verifying one’s identity, confirming they are who they claim to be. Know Your Customer (KYC) is a process that does not require physical confirmation of the customer’s identity. Instead, it confirms that the details provided by the customer appear to be legitimate and consistent with the service they are trying to access. 

Anti Money Laundering checks (AML) go a step further than KYC and involve compliance with regulations. AML checks look for any potential association with financial crimes or politically exposed individuals.  

There is a growing interest in digital identity programs, leading to their implementation in countries such as Estonia, Sweden, and some African nations. However, digital identity as a topic is tied up with politics, making it a complex issue. In countries where digital identity is in use, it has been largely successful; on the other hand, many countries have not been as successful due to a lack of political will. Despite this, the demand for digital identity is increasing, and it is likely that we will see more implementation and integration of it in the future. 

Richard predicts that the future of online identity verification will revolutionise the way we sign up for services. By linking AML compliance tokens to an individual’s digital ID, personal information such as age and address will be securely stored in a vault, allowing only the necessary information to be shared. This will streamline the process of accessing services whilst maintaining security and privacy. 

Kathy acknowledges that the adoption of digital ID systems in the US may face political opposition due to concerns over data ownership and privacy. Despite this, there is recognition that such systems are necessary for effective AML programs, as digital money is becoming more common. Therefore, finding a way to implement digital ID systems while addressing data ownership and privacy concerns is crucial for maintaining operational resilience in the financial sector. A collaborative engagement between significant people from diverse departments can channel various viewpoints. 

How can we simplify KYC identity verification (IDV) checks for key players?

The KYC IDV checks for key players could be simplified through digital verification, but regulation varies across the world, leading to a fragmented system. For instance, the UAE uses facial recognition tied to government ID, while Spain and Italy do video-capturing conversations, however, this may not be as scalable as they’re reliant on call centres. While in the UK, US, and Australia, the process is more data-driven, causing less friction for consumers. To address these challenges, governments and tech companies should exchange data, but the lack of trust often prevents the two parties from forging together, making them hesitant to collaborate. 

Moreover, the use of innovative technologies such as social media biometrics, semantic analysis, and APIs for open banking can help cut down the process. Reviewing current procedures and incorporating relevant touchpoints and online portals can also streamline the process, making it more agile. The slow implementation of digital IDV must also be addressed to meet customer expectations set by fintech innovation. The UAE pass app is an example of the successful simplification of KYC, allowing users to verify their IDs and sign and share documents digitally in a secure manner. 

What are the main challenges facing Money Transfer Operators (MTOs) regarding compliance and regulation? 

Some of the main challenges according to Nadeem include insufficient time spent investigating constant shifts, lack of periodic policy reviews, and the need for third-party audits to provide external viewpoints for improvement frameworks. These challenges highlight the importance of staying on top of regulatory changes and maintaining compliance. 

Richard also adds that businesses demand a global solution that works everywhere, which is challenging due to different regulations in each country, as highlighted previously. ID documentation and databases also vary in the information provided, making it difficult to create a universal solution that delivers transparency and granularity. 

Does the challenge of varying regulations over multiple jurisdictions impede or enable innovation? 

The existence of various regulations across multiple jurisdictions enables more innovation. Although the technology exists, the problem lies in finding organisations that can be trusted to deliver such solutions. In fact, many innovations arise from people facing daily challenges and finding new solutions. In today’s constantly evolving regulatory landscape, it’s important for businesses to accept it as the new norm and raise their standards to gain a competitive edge. One successful example of this is open banking in the UK, which was made possible by regulatory changes and has opened opportunities for innovative financial products and services. 

In summary, having operational resilience is crucial for businesses to not only survive but thrive in today’s fast-paced digital environment. By being prepared, adaptable, and ready to respond to any unexpected events, businesses can reduce risk, save time and money, and ensure their operations continue smoothly.

What next? 

At RemitONE, we endeavour to provide the most compliant technology and licensing solutions, alongside expert advice on how to remain compliant when starting or scaling your business.  

RemitONE’s Compliance Manager™ has been evaluated by leading regulators and used by top-tier banks and MTOs. Our NameMatch™ application checks remitter names against international AML block-lists including CIA World Leaders, DFAT Canada, DFAT Australia, EU Sanctions, FIU Netherlands, HM Treasury, MAS, SECO, UN 1267, MAS and much more. We link up with a variety of PEPs and Sanctions lists worldwide. 

For AML and Compliance support, or to hear more about how the RemitONE solutions can support your business, get in touch at sales@remitone.com 

We’re Attending Seamless Asia | 27-28 June 2023

We’re thrilled to share that our Associate Sales Director, Oussama Kseibati, will be attending the upcoming Seamless conference in Singapore and would love to connect with you there.

If you’re planning to attend the conference, we’d be delighted to meet with you and explore how RemitONE can assist you in fulfilling your business requirements.

Schedule a meeting with the RemitONE team by emailing sales@remitone.com

We’re excited to meet you face-to-face and discover the potential of a successful collaboration!

Innovation in Payments and Remittances (IPR) Global 2022 – Brought to you by RemitONE

RemitONE was pleased to bring to our great industry the Innovation in Payments and Remittances (IPR) Global event at The Westin Hotel, London, UK, that took place from Wednesday 19 to Thursday 20 October 2022.

IPR Global is the ultimate hybrid event for those passionate about transforming the money transfer industry. The event brings together global industry stakeholders, visionaries and business leaders to make informed decisions and drive positive change in the industry. 

The IPR Global event featured 30 prominent industry speakers, including leading experts from Al Fardan Exchange, JMMB Money Transfer, Moneygram, RemitONE and many others from the money transfer supply chain.

Over 1000 online and 100 in-person attendees took part in the expert panel sessions, training courses and networking breaks at The Westin Hotel and on the dedicated online platform.

Watch all the panel sessions on-demand here.

The Growing Money Transfer Industry: Unlocking new revenue streams and seizing opportunities

Partnerships and Interoperability in the Payments Ecosystem

Mobile Money and the Utilisation of Super Apps

IPR Course: RegTech for Compliance in the Money Transfer Industry

Building Operational Resilience in a Digital Industry: Security, KYC and Compliance

Saving the Crucial Role of Agents and Banks in the Remittance Industry

Does Blockchain have a Future in Payments and Remittances?

IPR Course: The Ultimate Guide for Start-Ups

What next?

To discuss any of the panel sessions or to get more information on how RemitONE can support your Money Service Business, get in touch with the team at sales@remitone.com

Video: Mobile Payments and Remittances – Understanding the impact and the opportunities

Continuing our recent discussions exploring the evolution of the remittance sector, RemitONE hosted their IPR EMEA event on 2-3 March 2022. The 90-minute panel session centred around the evolution of mobile payments and remittances and how they are going to impact the industry.

The panel consisted of experts from both RemitONE and our friends and partners in other global companies. In case you missed the discussion, here is a summary of the key insights.

Webinar moderator:

• Ababacar Seck, Managing Director of Africa, RemitONE

Panellists:

• Sukhi Srivatsan, Head of Sales, AZA Finance
• Edward Chidavarume, General Manager of Business Development, CashPesa
• Muhammad M. Jagana, CEO, Kuringo
• Clinton Leask, Business Development Lead, Pay@

Time Stamps

00:00 Introductions

06:32 Why does financial inclusion matter?

11:15 Who delivers financial services in the market at the moment?

14:35 What obstacles and legal infrastructure regulations are agents, MTOs and banks facing to catch up with mobile operators in Africa?

24:32 What roles do technology and mobile payments play in financial inclusion? What are the main challenges?

35:02 How will interoperability between Telcos benefit the end users?

42:22 What role do central banks and governments play in financial inclusion?

47:12 How can we improve the user experience and make it seamless for the unbanked population in Africa?

53:54 What progress should we expect to see in the years to come? What advancements need to happen?

Why does financial inclusion matter? 

Sukhi: Financial inclusion matters today because it is our greater responsibility to ensure everyone has equal opportunity, whether you are a business or an individual, to access affordable and timely financial services and products. Especially if you look at the world of mobile payments and remittances. We need to empower communities, give them access to basic needs, like food and shelter, but also increase the economic output of the country and level the playing field between developed in frontier markets.

Muhammad: Financial inclusion is one of the fastest ways to change lives, by empowering the unbanked or the underbanked; especially women and young entrepreneurs who find it very challenging sometimes to have access to financial bank accounts. I think digitalisation of the financial system makes it much easier for people, especially in Africa. As we all know today, mobile phone penetration is huge in Africa, and the majority of people know how to use things like WhatsApp, so it makes it easier for them to use their phone and to be included in the financial system.

Who delivers financial services in the market at the moment?

Muhammad: Today, companies like Kuringo and other fintechs are expanding their reach to the unbanked and providing financial inclusion services, simply by offering them an app – they do not need to have a complicated banking system or anything else for them to be able to access the payment systems. But generally, it’s the fintech companies and mobile money operators that are disrupting this market.

Sukhi: I think one important point to highlight here is a provider like RemitONE is looking to bring everything together and do a one-to-many integration. So, through the RemitONE platform, an MTO could connect and push all the remittances with one integration, but in many markets. So, there are fintechs that are really growing in each of these separate markets, but the hardship and the obstacles in each market are so unique. So, I think providers like RemitONE really look at that aspect.

What obstacles and legal infrastructure regulations are agents, MTOs and banks facing to catch up with mobile operators in Africa?

Clinton: I think the biggest challenge is that it’s always difficult for underserved incumbents. So, whether it is mobile apps and mobile operators in Central Africa, or whether it is tier one banks, like we have in South Africa, changing things without regulation or unforeseen market changes is very difficult to do. The way compliance is shaping up these days, those burdens are growing. It is getting more onerous to comply with various things around AML, CFT, FATF, particularly for onboarding and monitoring end customers, especially as new entrants and smaller players catch up – you must comply with these from the get-go.

Muhammad: These are the challenges that can create obstacles because only the big guys are there already. They have a bigger balance sheet and a bigger team. But the good thing is, especially in Africa, there is a lot of ‘plug and play’ technology coming in. If you look at it in terms of, how do I partner with somebody who specializes in providing a platform, who specializes in providing tech, who specializes in something else, and you focus on the user experience, it will help you grow your footprint.

Edward: We’ve also seen the regulator shift into a more risk-based approach when it comes to KYC on customers, which now gives the fintech players the opportunity to come up with solutions that enable them to onboard customers easily with a risk-based approach. You can have API integrations for verifying documents that you get from the customers digitally which makes onboarding easier and cheaper.

What roles do technology and mobile payments play in financial inclusion? What are the main challenges?

Edward: We are now shifting from the brick-and-mortar. The brick-and-mortar banks were the ones dominating the financial services market. But now we’re looking at the mobile app and the way that it’s increasing in Africa – by 2025 it has been expected that at least 80% of the population in Africa will have mobile phones. So, now with the technology and the mobile penetration building within Sub-Saharan Africa, it becomes easier with technology for us to offer financial solutions to these markets where you can offer mobile money solutions.

Clinton: Mobile payments are the future. There is no other way to do this and to solve what needs to be done in Africa in terms of financial inclusion. The devices aren’t a problem anymore, unlike a few years ago. It is really about ensuring that the cost of data is being tackled effectively by regulators across all countries to promote the usage of mobile payments.

Sukhi: One example is if a fintech is starting out and wants to build a mobile app. Initially, there needs to be a focus on building one thing and doing it well and gaining user attraction. And then once that is underway, and you have that retention of users, it is important to start to diversify the products and services you offer. So, not just being able to receive money, and me being able to send it to you in a P2P manner, but also, can I do other things with this wallet? Can I go and can I buy a coffee? Can I go to the merchant? And can I pay for my scarf? So, lots of different things, lots of different use cases. But, the initial steps are to start small, build focus, and then eventually build up and add more products and services. So, you can diversify and create an entire user experience within your product and within your service.

How will interoperability between Telcos benefit the end users?

Muhammad: Today, if you do not have interoperability, a certain segment of society or a certain community will be left out. The cost of doing business or the cost of providing the last mile of the financial inclusion journey to them is expensive. So, to reduce the cost of transactions, interoperability is a must. Lowering costs of transactions, increasing volumes and expanding footprints can lead to people being able to pay for basic things in life that they need. It allows farmers to sell their produce, and they don’t have to travel miles to a bank to cash their cooperative checks. I think the interoperability we’ve seen in the UK, with the open banking system, has really allowed fintechs to explode, much more than any other European or US system. So, it is essential in Africa for governments to look at interoperability as a key to open access to finance, allowing the underbanked to have access to financial inclusion, and allowing the unbanked to come on board.

Edward: It is such a key thing for end consumers. We’ve seen it in South Africa, for the mobile operators it has created a boom in terms of customers because people are now able to upgrade and do things much easier. So, there is a strong benefit for interoperability, not only for the consumers but for the Telcos as well. They will see a rise in transactions for sure.

Sukhi: So, there is a lot of hesitation when it comes to this from many of the Telcos or the bigger players. They’re asking: is my business going to be taken away? Am I going to lose revenue over this? But thinking a bit longer term, you will get more user traction and it will create a better user experience. More importantly, it increases the frequency of a user using your product.

What role do central banks and governments play in financial inclusion?

Clinton: Financial inclusion is quite a broad term and means many things to many people and industries. But, central banks and governments are key in driving financial inclusion. It comes from clear and transparent regulation that needs to be put in place with participation from their side and the industry. So, whatever they are putting into place, they need to ensure firstly, that it is going to be cost-effective for everyone. Secondly, they have to drive competition and innovation. So, we must ensure that there is a level playing field, in terms of how people can tackle it and how industries can get involved. We touched on interoperability quite a bit. We know it goes hand-in-hand with reducing costs and accelerating competition, but also making the offering bigger for everyone.

Muhammad: In addition to this, the role central banks can play is to push for government payments to be digitalised. In the Gambia, they started talking about pensions and a scheme to be paid digitally. I think this will also help push financial inclusion and would allow people to be onboarded much easier.

How can we improve the user experience and make it seamless for the unbanked population in Africa?

Edward: When it comes to user experience, the first interaction that you have with the customer is onboarding. I believe when it comes to the information that the customer must share with a service provider, it is confidential information, and there must be some level of trust. So, the customer must feel comfortable sharing that information and there must be some form of transparency on the product that makes the client comfortable. Also, the experience must be as easy to use for the customer as possible.

Sukhi: You need to make onboarding seamless. Users should be able to start using the platform quickly, whether they are individuals or businesses. For that, you need to balance both security and compliance along with a positive user experience, which a lot of fintechs have done really well. Compliance also plays an important role. So, we cannot forget about what it means to stay compliant with the regulators, what it means to stay compliant with all the financial authority bodies, and how you incorporate that as you grow from one stage to the next as a company.

Ababacar: We know that our population maintains very specific services and all the players who experience growth have very simple to use platforms and, as a result, are successful. People use their mobile phones to connect to others and to sell and pay. Now we also see QR codes that some operators are offering and all of this is very easy to use.

What progress should we expect to see in the years to come? What advancements need to happen?

Sukhi: This is a very exciting question because we can talk about some very creative ways of what the future is going to look like. Obviously, there is a lot of scope and there is plenty of opportunity. But it is going to require a lot of collaboration as we just covered. How can governments help? How can central banks help? How can the regulator help? And how can the fintechs and everybody else work together in this ecosystem? I also think traditional digital currencies and cryptocurrencies are something we all need to be aware of – the adoption is already starting to happen. We see it in many of the markets, but we still have a long way to go. And I am personally very excited about the opportunity here.

Edward: I think the one to watch out for is what the central banks are going to do with the CBDC. The whole ambition is that they are the custodians of these individual wallets and there will be an impact downstream for everyone in terms of MTOs, mobile operators and banks because it is shortcutting everyone out of the flow. So, that will be an interesting one to see.

For more information or to request a free consultation with one of our money transfer specialists, please email marketing@remitone.com

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Video: Better Together – The money transfer ecosystem

Continuing our recent discussions exploring the evolution of the remittance sector, RemitONE hosted their IPR EMEA event on 2-3 March 2022. The 90-minute panel session centred around the money transfer ecosystem, partnerships and collaboration

The panel consisted of experts from both RemitONE and our friends and partners in other global companies. In case you missed the discussion, here is a summary of the key insights.

Webinar moderator:

• Selim Mohamdi, Business Development Manager, RemitONE

Panellists:

• Wayne Gould, Head of Direct Sales and Financial Services, Trust Payments
• Priscilla D. Friedman, COO, CrossTech
• Muhammad M. Jagana, CEO, Kuringo

Time Stamps

00:00 Introductions

03:55 How significant is the remittance industry and who are the traditional and new players in the ecosystem?

07:55 How does partnering with payment gateways assist money transfer operations?

12:31 Can you provide some examples of other successful partnerships, and why they work?

16:57 What are the developing trends within our ecosystem and what is RaaS?

19:55 What do you see as the future of payment gateways? And what can we expect to see in this space?

27:40 How can MTOs leverage partnerships to expand their networks without necessarily having a presence in that country?

29:55 What are the critical questions to ask when evaluating a payment vendor or a technology partner?

How significant is the remittance industry and who are the traditional and new players in the ecosystem? 

Priscilla: The remittance industry has transformed rapidly in the last five years, and is becoming very digital. With this new transformation and globalisation, specifically during the pandemic, many money remittance service providers must focus on digital remittances to enhance their business and provide faster transactions to clients, and agents must also provide services digitally to their clients.

But the industry has become much more than just remittances. With new services such as B2C fuelled by the gig economy and B2B fuelled by e-commerce, those markets are 10 to 20 times larger than remittances. Money transfer providers are using their technology and experience to grow into segments. The traditional players in the markets are MoneyGram and Western Union, and some of the new players are Wise, Azimo and Currency Direct. As I navigate this industry, I learn every day, that new FinTechs are coming into the market with new solutions involving money transfer, digital banks, and many more.

So many different types of partnerships exist in the remittance ecosystem. How does partnering with payment gateways assist money transfer operations?

Wayne: I think the first key thing here is that the payment gateway provider needs to be able to cover all of the payment touch points. For these merchants who did not have payment methods like a simple POS machine to collect payments, they really struggled. Now on the other side of this, we collaborate very well with our merchants, enabling them to collect payments not just face to face, but also helping them digitalise their entire platform.

In addition to all of this, the right payment partner would also allow you to process funds in different currencies, as well as settle them in a multi-currency account. This is a very crucial SLM, simply because with remittances, the competition is quite rife now and margins can be quite low. So, to partner with a payment gateway, who could provide not just the technology, but also a solution that is very cost-effective, is a match made in heaven.

Can you provide some examples of other successful partnerships, and why they work?

Muhammad: Partnership is how we built our entire company. We believe that today, with technology, you do not need to build, you just need to plug and play. What we have done over the last 12 months, as a start-up, was to focus on how to expand our footprint. How do we plug in technology easily? How do we go to market where we are not? It is either you raise a multibillion-dollar fund, or you go and partner with people. Today we have seen instances where technology has made it more accessible for customers and to deliver a vast distribution network. As a result, it is uncomplicated and straightforward because we don’t have to worry about building the technology; we partner with it.

What are the developing trends within our ecosystem and what is RaaS?

Priscilla: So, innovation is improving, as we have been discussing. Digitalisation, the rise in mobile-based platform channels and cross-border transactions, and the decrease in remittance transfer time and cost drives the growth of the market.

RaaS (Remittance as a Service) is a go-to solution for many MSBs, Fintechs and small businesses and is a solution that we recommend to clients in our consulting division. So, we have the solutions that are focused on technology providers, we have some that are focused on licensing and reporting, and we also have some that are providing banking as well. Right now, we are seeing a new trend where we see a one-stop solution. But one point that is important to say is that some clients may already have some part of the solution developed. So, it is good to partner with companies that can marginalise what your need is, instead of just giving everything.

What do you see as the future of payment gateways? And what can we expect to see in this space?

Wayne: Payment gateways will always form and will always be an integral part of card payments because that is what is bridging the gap between our MSBs and their customers who want to pay. In terms of keeping up with trends, crypto is something that is picking up a lot of pace in a lot of areas and blockchain-based pay-outs, are something that is being pioneered by Ripple now. These are things that we’ll be seeing for payment methods of the future when it comes to things like payouts. In the days to come, as businesses start to evolve, requirements start to evolve. It is very critical that payment gateway or technology providers within the payment space can adapt and rise to the demands of our customers and our merchants.

How can MTOs leverage partnerships to expand their networks without necessarily having a presence in that country?

Muhammad: What we have seen, especially with our experience over the last year, is that technology has brought down the cost of integration and there is a lot of interoperability. Now, people have realised that you do not have to be a big standalone and everybody seems to be building their own small, quiet part of the jigsaw puzzle. When there is somebody who has already built a network and aggregator, this is your way in. So, you can just plug into their platform. Our clients from Europe, for example, can easily send money from a wallet or mobile phone account to your bank account, and we can also easily be in about three or four countries just by switching on a plug somewhere.

What are the critical questions to ask when evaluating a payment vendor or a technology partner?

Wayne: I think the first one is do they understand your business? I think that’s very important because everyone wants to help everybody but help needs to come in the right way. To work with a payment provider that understands the ins and outs of the business is very, very crucial. And things like, what certification or who regulates them as an acquirer, or as a technology provider is also very important.

When it comes to things like the technology, and asking them the types of platforms they work with, for the pay-ins and pay-outs, as well as what kind of security features that come with the gateway. Does it offer fraud screening? If it does, what does it run? What does it check for? And so on. These are some questions that could be interesting for an MSB to ask their provider. Another feature, which is quite important, is how soon can they settle their funds? Obviously, with remittances, we understand that funds coming in is as important as funds going out. So quicker settlements are imperative when it comes to this industry.

Priscilla: One of the things that I always ask Fintechs or MSBs who are looking for solutions is how many transactions are you looking to transact to your start-up? Are you a midsize business? That is very important because different payment providers have different tools, and they are also looking for a specific target. In addition, from a payment provider view, one of the questions that I also ask is module customisation, do you have modules for different clients? How flexible are the payment provider solutions in providing modules that are specific to that client’s needs?

For more information or to request a free consultation with one of our money transfer specialists, please email marketing@remitone.com

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Video: Compliance and AML for Money Transfers – Everything you need to know

Continuing our recent discussions exploring the evolution of the remittance sector, RemitONE hosted their IPR EMEA event on 2-3 March 2022. The 90-minute panel session centred around compliance and AML for the money transfer industry.

The panel consisted of experts from both RemitONE and our friends and partners in other global companies. In case you missed the discussion, here is a summary of the key insights.

Webinar moderator:

• Oussama Kseibati, Associate Sales Director, RemitONE

Panellists:

• Richard Spink, Sales Director, GBG
• Gabrielle O. Micheals, Senior Compliance Officer, Nairagram
• Imad Chishti, Director of Payments & Compliance, Evantagesoft
• Ibrahim Muhammad, Payments Consultant, Finxplor Consulting Services

What are the main challenges facing MTOs regarding compliance and regulation? 

Gabrielle: Well, it has to be adaptability. We all understand that countries have different guides, let’s say in the UK you have FCA and in the US BSA. Sometimes when you have certain partnerships with other MTOs in this jurisdiction, it doesn’t keep up because there is that difference. The risk when it comes to businesses is knowing what you want to do. For instance, how can we work to create an effective program and how can we implement this program in a way where it protects us, our service, customers and clients. What I always would put in first is, why do you want to have a risk assessment on your operations. You need to know the first thing that you want to achieve, and that is to detect and prevent your system or your company from money launderers in any way as they always find ways of looking after our abilities, and then using that, to aid our own needs.

What is digital ID? Why is digital ID necessary? How does it impact KYC and AML?

Richard: It’s different now from what it will be. In practical terms, digital identity at the moment is an idea which has been delivered in a few countries, but it’s not global. We’re certainly not at that point where it’s making any difference whatsoever to AML and KYC processes. At the moment in terms of the landscape for digital ID, the processes are delivered in slightly different ways in different countries. Digital ID at the moment essentially means confirming proof of ID proof and address.

At GBG we ran a survey on this a year ago, in which we found for most people that means something like presenting a driving license or a passport. In 10 years we can expect the process to be the same but using a mobile phone number, and email address and a biometric and the biometric that was typically used in that process at the moment is a Face.

Particularly looking around AML Compliance, what are we seeing in Pakistan and the Middle East region?

Imad: We are seeing two major aspects that are creating an impact. One is that ever since this pandemic started, there is a drastic change in customer behaviour. From Pakistan’s perspective, the regulatory estimates that the formal and informal remittance channels are somewhere between $40 to $60 billion. This huge gap between the two channels is what MTOs, regulators and banks have been trying desperately for the past many years to somehow move informal remittances towards formal channels by offering incentives.

The second thing that we are seeing happening is that with the rise of fintech, banks are being challenged significantly. In our understanding MTOs ability to improvise and innovate is much faster than any conventional traditional bank possibly due to the kind of environment that banks are in. The key difference is that banks are compliance and risk driven. So, they will not act upon anything unless they have full assurance from their compliance and risk that everything is by book. As opposed to MTOs and fintechs’ who are very customer-driven.

What is being done to help the clients face literacy in terms of the technological side?

Imad: We feel that changing our customer behaviour goes hand in hand with the motivation, why would customers want to use something new or something different than what they have been using in the past. We have been using different incentives, some incentives are being offered in partnership with the government so there are a lot of lucrative subsidies that the government is providing not just to MTOs but also the customer.

Are E-wallets big in Asia or is that something that’s catching on?

Imad: Two things have revolutionized the financial industry. One is the rise of E-wallets. And the second is biometric verification. So now the whole population adult option is biometric verified, and there are roughly 45 million registered mobile accounts in Pakistan right now from a population of 120 million with an adult population of 70 to 80 million. You can see that compared with 15 or 16 million bank customers mobile wallet density is much wider. 

How can regulators balance evoking trust for consumers whilst avoiding stiffening innovation in the industry?

Gabrielle: Well, regulators are awakening key innovations in the industry, and also carrying improvements. We can see some cases where a new regulation comes out it gives new ideas and birth to new technological innovation that comes forward. People are beginning to try different things.

Would you say stakeholders like the Central Bank in the remittance industry have also invested heavily into tech as MTOs and Fintechs have?

Gabrielle: I won’t say they have all adopted the whole culture of being completely Technological. If banks have I don’t think we’ll have many issues and it’s just a case of plugging your API. I think everybody it’s still in the process.

Oussama: I think that’s one thing I look forward to in the future, while things become more centralized and people become open to APIs, it would be just easier to connect everyone. And again, pass information through. So rather than you need to report to the authority every month, your system will simply push that information through overnight. It removes that human error or a part of it. Again, they only have access to that part of the system that they need the information on to see velocity checks and things like that. It’s a positive thing to at least hear that, particularly in your region they understand that technology is the way to go. 

What are the individual different tools within IDV? 

Richard: Identity verification Traditionally meant physically, or physically looking at a proof of ID in a proof of address document. Lots of businesses will still do that whole face-to-face verification. COVID has changed that landscape. If you think about IDV it’s the process of checking, providing proof of address, and digitising that has delivered two core pieces of technology. Confirming someone lives at their address has traditionally been the quickest way to run this process.

However, it only works if the source of data confirming that someone lives at their address is good, if the data isn’t any good there’s not much point in trying to use that data. All the new technology is around proving identity by using an identity document but also proven to look at as part of that process

Imad: We are developing some data-driven decision tools for making real-time AML decisions, and we are making some tools for real-time customer profiling aggregation of data. We are interestingly working on face verification, and voice biometrics, this is especially important for countries like Pakistan where the infrastructure is not good, the more you go outside urban areas infrastructure is dependent on telecom services.

For more information or to request a free consultation with one of our money transfer specialists, please email marketing@remitone.com

What next?

Now that you’ve read our article we want to help you get the most out of it and plan for 2022.

Tap into our experts and schedule a free consultation.