As the world makes a shift from traditional to digital, it has brought forth tremendous opportunities to ease money transfer and task management back home.
Friends, family, agents, and banks are terms that people were accustomed to for the longest time till technology taught us otherwise.
Migrants used these old practices of sending money back home for years which involved asking loved ones for favors, standing in long queues at a bank, and going to an exchange agent very common.
Sending and receiving funds back home was time-consuming and costly until the introduction of the digital remittance model.
Traditional Remittance Model
Remittances provide millions of families with the basic needs and financial security they need to live. Without these remittances, families in developing countries would not be able to survive.
Despite the dire need and significance of remittances, they have remained stuck in inefficient models for a very long time. The only way people knew how money could transfer from one point to another was by the traditional remittance model. Here’s how it works:
- Immigrant working in the host country earns wages or salaries in the host country’s local currency.
- Upon receiving the compensation, the migrant then takes out some hard-earned cash and goes to a money transfer outlet where they pay a hefty fee to send the money to their family back home.
- The family then gets word on when the funds will arrive.
- Someone from the home country then goes to the closest money transfer outlet (which is often not particularly that close), pays yet another hefty fee, and receives the remittance as local currency cash.
It is all an expensive, complex, and inefficient hassle.
- It is not the most appropriate option for those with no bank account.
- Speed is not the greatest as transfer of money takes days and is not the most convenient channel if one wants instant cash.
- It is not a 24/7 service; hence it is not accessible all the time. There are delays expected.
- It is not ideal for sending money through agents in times of emergencies.
- It is prone to fraud and misuse of money as vendors are not verified or trustworthy.
Many then resort to the unregulated network that goes by the name hawala. Nevertheless, the process here is still the same: A migrant gives cash to an agent operating in the host country where the migrant is currently working. The chosen agent has an associate in the migrant’s home county; the home-country agent delivers an equivalent amount of local currency cash to the migrant’s intended beneficiary.
The most apparent issue with both of these models is cost, questionable vendors, and money not being delivered timely.
The Shift to Digital
Over the years, there has been substantial growth in FinTech money transfer companies. Here’s why:
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.
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 expenses such as amendment charges, cancellation fees, and other hidden charges. Thus, resulting in lower costs for migrants altogether.
Secure and Reliable
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 newest 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.
The Role of InstaKin
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.
Here’s how InstaKin is bridging the gap between migrants and their home countries:
InstaKin Offers Instant Services
InstaKin continues to expand its offering of last-mile services back home.
From HEC attestation (Educational documents) to get a police clearance (Legal documents), InstaKin manages all your documentation-related tasks.
From buying and selling of your assets to property valuation, Instakin provides a One Window Solution for all your property management tasks back home.
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.
InstaKin offers a dedicated team of specialists committed to delivering exceptional service and advice to our customers for Immigration. Contact us today.
InstaKin’s Concierge service helps you to request any service back home. Just post a request with your order details, and we will get it done.
- Consumer Electronics
Migrants can send consumer electronics to their families back home using InstaKin’s vendor network for fulfillment.
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.
- Home Care
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. We aim to make easy the lives of migrant communities.
InstaKin makes it easier for expats to send customized gifts to their friends and family with a fast, secure, and highly reliable ordering process.
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
We Offer You the INSTAKIN Guarantee
With InstaKin around, you don’t have to rely on unverified and questionable vendors in your home country. We guarantee to provide you with already operational, verified, and trusted vendors through a quick, accurate, and compliant financial platform. Taking care of all your needs back home while you sit back, relax, and focus on your everyday life is our motto.
What Matters to Us