Both Blue Collar and White Collar migrant communities act as a lifeline for their families back home. One-generation migrants tend to maintain a close bond with their home countries, and sending funds back home is an integral part of a migrant’s journey.
One in every nine people globally relies on these monetary funds sent to them by migrant workers. If you look at it from a larger perspective, international remittance has become a prime contributor to the GDP of many Low and Middle-Income Countries (LMICs).
Global Remittance: An Expensive and Non-Transparent Affair
There’s no doubt in the fact that global remittances have proved to be the only source of income for most blue-collar families in the developing world. However, it’s also true that the worldwide remittance services are costly as they come with a bunch of hidden charges, which the senders and receivers are often unaware of.
According to the World Bank, the standard rate charges levied by the global remittances are approximately 7-9% of the funds sent.
But why is sending a remittance such a costly affair?
There are many reasons for high costs; one reason is that the banks consider remittance a high-risk sector. It is mainly because the international remittance requires multiple credits and debits across accounts that ultimately pass on the money from the sender’s country to the receiver situated in other countries.
Many other factors increase the remittance costs, such as
- A significant difference between the conversion rate of inter-bank currency and the rate cited by the bank
- Fee processing charges for every single activity
- Intermediaries and their hidden commissions that are involved in the process
FinTech: Making Global Remittance Instant, Cost-effective, and Accessible
Over a few years, there has been rapid growth in FinTech international money transfer companies.
The arrival of these and several other FinTech players have undoubtedly changed the money transfer industry. People around the globe are now choosing FinTech remittance services at a faster pace than ever before.
Now you may be thinking, what were the factors that made FinTech so relevant?
Here are the notable reasons that brought about this change:
Faster than banks
One of the key reasons and most significant advantages of using FinTech solutions for international remittance is its speed. A bank can take up to a few days to transfer money, while the FinTech applications take a considerably shorter time. These FinTech companies also enable the users to choose the option of express delivery method that further speeds up the transfer process.
Most remittance FinTech companies process remittance requests for lower fees/free in few selected regions. Not only that, but FinTech also refrains from charging extra fees such as amendment charges, cancellation fees, and other hidden charges. Thus, resulting in lower costs for migrants altogether.
Making the most of the latest mobile technologies has resulted in FinTech companies investing in high security to guarantee consumer data is kept safe at all times. A few of these latest security options used by such companies include biometric data and encryption.
The companies іnvоlvеd іn fіnаnсіаl tесhnоlоgу use mobile connectivity. Thіѕ ѕіgnіfісаntlу boosts the number of individuals who can access the ѕеrvісе and improve the adaptiveness and соnvеnіеnсе of trаnѕасtіоnѕ.
Low Transfer Fees
Apart from the exchange rate, transfer fees also affect the cost-effectiveness of a transfer. A transfer fee is an amount that a sender needs to pay. Generally, banks kept a high transfer fee.
FinTech companies offer multicurrency accounts in which the user gets account details from various countries. In this account, the users don’t have to worry about the exchange rates as they receive payments in the matching currencies.
FinTech’s international payments solution has set a new benchmark for transparency in the remittance industry. Both the senders and receivers of funds get real-time updates. Apart from ensuring transparency, the solution also maintains top-notch security by carrying out transactions via a secure tunnel.
InstaKin – Leading All the Way
Named as one of the most innovative FinTech companies in the USA, InstaKin is standardizing this industry and has completely changed the way migrants interact with their families back home.
InstaKin Offers Instant Services
InstaKin continues to expand its offering of last-mile services back home.
- Documentation services
From educational attestations to government-related paperwork, InstaKin manages all your documentation-related tasks.
- Property management
We at Instakin provide a One Window Solution for all your property management tasks back home.
- Legal Services
From getting your company registered to deal with any local civil matters, InstaKin is a one-stop solution for any legal services that you may require. We connect you with verified vendors.
- Consumer Electronics
Migrants can send consumer electronics to their families back home using InstaKin’s vendor network for fulfillment.
- Customized Gift & Events
InstaKin makes it easier for expats to send customized gifts to their friends and family with a fast, secure, and highly reliable ordering process. Events are a big part of the South Asian Community. By helping migrants connect with verified event planners back home, we allow them to interact with them through our product and make direct mile-stone-based payments.
- Special Request
InstaKin Concierge service helps you to request any service back home. Just post a request with your order details, and we will get it done. Recently, an overseas Pakistani contacted us to arrange home care for her parents. This is just one example of how InstaKin is helping migrant communities by providing greater access.
As it grows, InstaKin will continue to add more services and exciting features to its product.
Our Customer App
Safe, instant, and convenient – InstaKin’s App is designed for both Android and iOS users. Our algorithm matches customers’ requests with the most relevant vendors based on availability, location, service, type, ratings, and service levels.
Key features to securely provide immigrants with access back home:
- Secure Transactions
- InstaPay for payment security
- Multi-Payment Options
- Digital Wallet
- Community Chat & Message Boards
- Vendor Collaboration