Remittances: A Powerful Force for Financial Inclusion

This article is brought to you in partnership with Clear Junction, written by Dima Kats, Founder and CEO, of Clear Junction.

Given how much migration around the world has grown over the past two decades, and combined with technology making money transfers more accessible, remittance corridors, inflows and outflows have undergone significant shifts.

No matter where remittances are sent from and headed to, it’s vital that they are made with security and speed built-in. But many remittance providers are struggling to facilitate fast and cost-effective remittances due to high costs, FX conversion challenges, and logistical hurdles. And sadly, that means many people seeking efficient remittance services have struggled to access and afford them. On the other side are recipient individuals and families who depend on those services – they can’t afford to be faced with delays in receiving funds.

Traditionally, the main option for remittances were money transfer networks like Western Union or the post office. But these transfers are often slow to be processed, and in places where physical infrastructure is sparse, chances are that recipients in home countries need to be paid via non-banking payment rails. However, not all payment networks may be available or accessible in every region, limiting the reach of remittance services.

Another challenge is that many banks are hesitant to work with remittance companies due to the perceived higher risk associated with money transfer businesses, which leads to account closures or limited access to banking services.

High transaction costs, including fees associated with currency conversion, international transfers, and intermediary banks, can also eat into remittance profit margins. Finding cost-effective payment solutions that offer competitive exchange rates and low fees is a constant challenge. This means many remittances remain cash-based and therefore more prone to fast-changing FX conversion rates eating into remittance balances and provider profitability.

Fluctuations in exchange rates can impact the profitability of remittance companies, especially those operating in multiple currencies. Remittance companies need access to services with the best FX rates on the most commonly used currencies like USD, EUR or GBP in order to give the best value to their customers.

On top of all of that, employing secure and proven technology is of paramount importance, as is the knowledge that when funds are sent, they will appear in the recipient’s account in as little as a few minutes.

That’s why Clear Junction’s platform is designed to minimise the operational and financial challenges of scaling up remittance FinTechs. We understand the difficulties faced by remittance companies in establishing accounts. So, our collection accounts enable remittance companies to hold a monetary balance with Clear Junction, enabling them to gain access to domestic and international payment networks across the UK, Europe, and US and benefit from competitive FX rates when conversion is needed.

Clear Junction provide a transparent fee structure, which gives remittance companies full visibility of the costs that they will incur on making cross-border payments – unlike some traditional methods when you do not understand the fees until the transaction has been received.

With remittances worth billions of EUR and GBP flowing through our pipes, we’re trusted by a wide range of players to provide reliable technical infrastructure, fast transaction routing, and low FX rates that enable people to send money home, to where it’s needed most – at the fingertips of recipients.

What’s more, Clear Junction can help remittance companies extend their reach outside their domestic markets, enabling them to access and build strong relationships with counterparties in various geographies. Our existing clients operate as a network and often times we are pleased to see internal settlements within that network.

Amongst the advantages offered by Clear Junction is the upcoming roll out of cross-border settlements using stablecoins. Using blockchain and pegged to a reserve asset like US dollars, stablecoins offer real-time settlement and remove the intermediaries that add to fees and risks. Stablecoins hold the potential to fundamentally transform remittance flows to underserved and emerging markets, empowering more financial inclusion and economic development, at societal and global levels.

With Clear Junction, you’re guaranteed clear advantages in your remittance offerings: reduced transaction costs, faster and more secure remittance flows, and the power to reach more customers. Get in touch with us at https://clearjunction.com/contact/ if you’d like to find out how we can help your business.

Meet Clear Junction at IPR Global 2024!

Joining as Platinum sponsors, you can meet Clear Junction at our annual IPR Global event, where you can dive into deep conversations, explore potential partnerships, and discover the latest trends in the industry from leading influencers.

The top decision-makers will be there, so don’t miss this golden opportunity. Our spaces are limited, so seize your ticket now before it runs out at: https://global2024.ipr-events.com/

We look forward to seeing you!

Attijariwafa Bank Group adopts RemitONE’s platform, enhancing its money transfer offering

June 2024: Attijariwafa Bank, a leading banking and financial group, is enhancing its money transfer offering by adopting RemitONE’s Money Transfer System. Their objective was to secure a robust, compliant, and highly secure online money transfer platform that could seamlessly integrate with third-party delivery networks across their expansive pan-African network. This decision aimed to ensure the strict enforcement of compliance procedures while sustaining rapid growth, ultimately delivering a dependable platform for their customers to securely transfer money online and in-person at their offices.

Ranked as the largest bank in Morocco and among the top five in Africa, Attijariwafa Bank Group has made RemitONE its preferred money transfer platform provider. This strategic move reinforces their position as the leading player in the banking and financial sectors within these regions. Known for their dynamism and innovation, Attijariwafa Bank Group has diversified its business operations and expertise to cater to the needs of all individuals, regardless of their social status or background.

Mr Oussama Kseibati, Head of Sales, commented, “RemitONE is proud to be partnering with Attijariwaffa Bank, to assist in their digital transformation. Attijariwaffa have chosen RemitONE as a white label end-to-end system provider, to increase reach to customers while providing a fast, reliable and user-friendly experience. We are excited to be working with this leading bank and look forward to a long-lasting prosperous relationship”.

Learn more at attijariwafabank.com and follow them on LinkedIn and Twitter (@AttijariwafaB).

About RemitONE

RemitONE is the leading provider of money transfer software solutions for banks, telcos, and money transfer operators (MTOs) worldwide. Organisations of all sizes use the RemitONE platforms to run their money transfer operations with ease and efficiency by reaching out to their customers via multiple channels including agent, online and mobile.

For more information on RemitONE, please email sales@remitone.com

Dahabshiil UK Partners with RemitONE to Revolutionise Money Transfers in Africa with Cutting-Edge Digital Solutions

July 2024: Dahabshiil UK, part of the international Dahabshiil brand, is a leading Money Service Business (MSB) specialising in cross-border money transfer services from the UK to Somalia, Somaliland, other parts of Africa and other continents around the world.

Dahabshiil UK and RemitONE have announced a strategic partnership to realise business growth. This collaboration allows Dahabshiil UK to utilise the RemitONE software’s powerful compliance features and mobile app technology to support their transition from their current brick-and-mortar model to a digital one.

Dahabshiil UK will work with supply-chain members – including payment gateways, IDV providers, Open Banking partners, SMS gateways and money transfer operators – that are part of the vast RemitONE Ecosystem™. RemitONE will, in turn, enhance its growing ecosystem by onboarding Dahabshiil UK’s network of send and payout agents.

Lamin Bojang, CEO, Dahabshiil UK: “We are thrilled to partner with RemitONE in this digital transformation journey. This collaboration represents a significant milestone in our mission to provide fast, secure, and affordable money transfer services to our customers globally. Leveraging RemitONE’s advanced technology will enable us to expand our reach and improve the efficiency of our operations, ultimately benefiting our customers by offering them more convenience and better service.”

Aamer Abedi, Chief Marketing Officer at RemitONE: “We are very excited to be working with Dahabshiil UK. We see this partnership as part of our vision to utilise technology to make money transfers affordable for the unbanked and underbanked. Dahabshiil is one of the biggest and most trusted money transfer operators in Africa and we look forward to working with them to bring the latest money transfer trends to Dahabshiil’s loyal customer base.”

Learn more at dahabshiil.com and follow them on LinkedIn and Twitter (@DahabshiilGroup).

About RemitONE

For more information on RemitONE, please email sales@remitone.com

RemitONE Liveness Feature™ Coming Soon: Real-Time Biometric Authentication for Digital Money Transfers

We are excited to announce the introduction of the RemitONE Liveness Feature™, brought to you through our collaboration with GBG.

The pace of digital transformation has accelerated remarkably in recent years, driven by the rapid advancements in artificial intelligence (AI). This technological surge has reshaped numerous sectors, offering innovative solutions.

In the healthcare sector, the UK’s National Health Service (NHS) integrated AI-driven facial biometric checks into their mobile app to simplify login procedures, minimising the need for in-person visits and accelerating the onboarding process. Similarly, airlines like Emirates and Delta have also adopted biometric facial recognition for check-in, security clearance, and boarding, streamlining processes and reducing physical contact. These innovations highlight AI’s transformative power in reshaping industries and improving operations.

At RemitONE, we have responded swiftly by introducing the RemitONE Liveness Feature™, to help your business comply with the Payments Services Regulations (PSR). These regulations require strong customer authentication for security, and our new Liveness feature ensures that you meet these standards.

What is the RemitONE Liveness feature™?

The RemitONE Liveness feature™ is an innovative tool that uses advanced biometric facial recognition technology for real-time authentication during customer onboarding when the customer is not physically present.

This technology includes liveness testing, which alongside facial biometrics, detects fraudulent attempts such as deepfake images or silicone masks used during selfie submissions. This ensures that the submitted biometric data originates from a genuine person who is physically present. By integrating this feature into your customer onboarding process, you can mitigate the risk of financial penalties and protect your company’s reputation.

Stay tuned for when this feature will go live. Follow us on LinkedIn and Twitter or subscribe to our newsletter for the latest updates.

Interview with Sid Gautam, Senior Vice President, Flutterwave | IPR Global 2023

We sat down with Sid Gautam from Flutterwave during our IPR Global event, to find out the key challenges and current state of Open Banking and payment processing in Africa, along with the benefits of attending the IPR Global event.

Sid specialises in embedded finance and cross-border payments within CeFi and DeFi domains. Over the years, Sid has managed to grow early-stage and growth businesses to realise their full potential across EMEA and APAC. His area of expertise includes new business development across the length and breadth of the enterprise organisations, alliances, defining go-to-market strategies as well as leading and scaling high-performance business development teams across geographies with a customer-centric approach.

Watch the interview for his expert insights.

Interview with Lindsay Lehr, Managing Director, PCMI | IPR Global 2023

We interviewed Lindsay Lehr from PCMI during our Innovation in Payments and Remittances (IPR) Global event, to share her thoughts on the transformative technologies shaping the global payments market, how Money Transfer Operator’s (MTOs) roles will shift in the coming years, what sets the IPR event apart, and more.

Lindsay is a renowned thought leader in the payments space, advising the world’s most exciting companies including card networks, global marketplaces and payment platforms. Since 2012, Lindsay has managed over 400 client engagements in the payments industry and grew her team of one to today over 50 consultants based across the US, Latin America, Europe, Asia, and South Africa.

Watch the full video to find out her insights.

Interview with David Lambert, from Paycross | IPR Global 2023

We sat down with David, CEO of Paycross during our Innovation in Payments and Remittances (IPR) Global event, to share his views on open banking, payment processing and much more.

David is a seasoned payments professional with a rich background spanning 12 years in the industry. His expertise encompasses card payment processing, cross-border payments, open banking, and transaction data analytics, with a specialised focus on the remittance sector.

Watch the full video to find out his thoughts.

Payments Rewired: Blockchain’s Impact on Remittances | IPR Global 2023

In this instalment, we traverse the corridors of Open Banking’s impact on cross-border remittances, harnessing AI’s potential for efficiency, and navigating the realm of blockchain-based solutions. Buckle up for an insightful session through the dynamic intersection of finance, technology, and innovation.

Moderator

Lindsay Lehr, Managing Director, PCMI

Panellists:

Walter D’Cruz, Director, Moneo Solutions
Sukhi Srivatsan, Head of Account Management, AZA Finance
David Lambert, CEO, Paycross

How does open banking facilitate cross-border remittances and interoperability between financial institutions?

Let’s first understand what open banking is before diving in. David summarises it as an instant domestic bank transfer system. This essentially allows third-party entities access to users’ financial data via APIs, enabling them to make payments on behalf of the user. Walter expanded on this, emphasising how real-time payments and data exchange are subsets of open banking. He highlighted the challenge it poses to direct debit and recurring payments, especially in merchant-initiated transactions.

David also shed light on Open Banking’s potential as an alternative payment method by making instant payments by just scanning QR codes; however, he notes its limited spread in the market. Drawing parallels with established systems like PayPal or Apple Pay, he stressed the need for better branding and consumer familiarity to propel Open Banking into a mainstream payment method. Moreover, the discussion linked Open Banking to Central Bank Digital Currencies (CBDCs), foreseeing their role in accelerating international payment rails for faster digital currency. However, concerns were raised about CBDCs being entirely under central banking control, prompting potential government involvement due to public apprehension.

How can AI be leveraged to enhance the accuracy of remittance transactions and improve the user experience?

Sukhi highlighted critical pain points faced at AZA Finance when it came to liquidity projection and forecasting for their clients. Addressing the need to ensure sufficient currency availability at the right time and place without inflating costs for clients. To tackle this, they created an internal model that utilised historical client data to predict future growth patterns, aiding in better preparation for customer demands and enabling proactive measures such as potentially offering increased liquidity when moving to new markets.

However, David expressed scepticism about the reliability of predictive AI for precise forecasting. He highlighted the limitations of AI, emphasising its dependence on the data it’s fed and its inability to independently form entirely accurate projections due to various external factors influencing trends. He believed AI must be heavily controlled, such as by setting rule parameters and cautious utilisation, to prevent misleading or inaccurate predictions.

Acknowledging this, Sukhi agreed that human involvement was crucial. While AI forecasts might not be pinpoint accurate, they allow for better-informed decisions.

Walter countered common fears around AI. He emphasised AI’s role in expediting data analysis by enabling quicker translation of data into actionable insights, thereby saving time and effort. Walter advocated for a practical approach, distancing from rigid rule parameters, which is especially beneficial for small to medium-sized enterprises (SMEs) that often struggle with sourcing and analysing multiple data sources to make informed decisions. This flexibility allows smaller businesses to compete and innovate alongside industry giants.

What are some real-world examples of successful blockchain-based remittance solutions?

Walter sees blockchain as a global equaliser capable of transferring value across boundaries in real time. However, he underscores the importance of recognising blockchain independently from central bank digital currencies (CBDCs) and cryptocurrencies, as they still involve inherent complexities like exchange rates and associated costs. However, the challenge of decentralisation may be difficult for society to embrace.

David, on the other hand, points out a fundamental issue: the persisting limitations in the speed of money movement due to technological and regulatory barriers. He notes that blockchain doesn’t inherently address this challenge, especially with governments increasingly advocating for CBDCs, which introduces another layer of complexity and opposition.

Furthering the conversation, Walter delves into the intricacies of technological efficiency. He cites an example of banks implementing cheque scanners to streamline verification processes, yet this technological enhancement didn’t significantly impact on the time taken for the money to be deposited into bank accounts. This prompts doubts about the effectiveness of new technologies in speeding up financial transactions. There is the possibility for a potential paradigm shift if major retailers, such as Amazon, embed cryptocurrencies. There is also an opportunity for the adoption of blockchain within the remittance industry; however, there needs to be collaboration among stakeholders to lay down a functional framework and process. This collective effort is crucial to overcome the hurdles and ensure a more meaningful integration of this technology into the financial landscape.

What next?

At RemitONE, our commitment is to provide you with cutting-edge technology, compliance solutions, and expert guidance to navigate the ever-evolving landscape of remittances. Whether you’re just starting out or looking to scale your business, we’ve got you covered.

Want to see how RemitONE can elevate your business? Book a free consultation with our experts today!

Interview with Priscilla Friedman, from CrossTech | IPR Global 2023

During our Innovation in Payments and Remittances (IPR) Global event, we met Priscilla, COO of CrossTech, to share her thoughts on the payments and remittance events industry.

Priscilla Friedman has an extensive background in operations management, strategy, process improvement, consulting and training. Her role as a Chief Operating Officer with CrossTech involves optimising operations, organising and managing events, and relationship management whilst building upon the company’s legacy.

Watch the full video to find out what she has to say.

RemitONE Feature Focus Webinar: Securer Transactions, Anti-Fraud Tools & White-Label Mobile App

In this webinar, our speakers will unveil powerful tools to combat fraudulent onboarding, ensure secure transaction management on both Android and iOS, and gain centralised control of your branded mobile app for seamless operations.

Each quarter, we will host live webinars to explore and demonstrate updates and improvements to the Money Transfer Engine, and chat with our valued clients about features they want to implement or wish to see in the future.

For more information on enabling new features on your system, contact support@remitone_admin

What next?

Want to see how RemitONE can elevate your business? Book a free consultation with our experts today!