21 Aug 2023
The rapidly evolving financial technology is deeply impacting the way Filipino migrants in foreign countries send money to Philippines from Australia, Canada, the UK, Europe, Switzerland, and other developed countries.
A report by The Philippines Statistics Authority said that the Filipino diaspora consists of about 1.83 million migrants working in different countries to earn a living and, in some cases, to seek high-quality education. By sending remittances, these Filipino migrants make significant financial contributions to the country’s economy.
A World Bank report said that the quantum of inward remittances to the Philippines in 2022 was $9.07 billion, way lower than $36.69 billion in the preceding year.
The role of technology cannot be overemphasised in ways in which Filipinos move funds from across borders.
This evolving technology not only affects how funds are moved but also renders redundant today what was relevant yesterday. It leads to several challenges and opportunities.
This blog will shed light on some of the emerging trends that come with financial technology. But before understanding these critically important fast-emerging FinTech trends, let’s first try to understand what financial technology (FinTech) is all about.
Financial Technology (FinTech), is a term that refers to any software, mobile application, or any other technology meant to automate financial activities.
Fintech‘s purpose is to bring about a paradigm shift in the financial world which it has achieved pretty much since its birth with the launch of early credit cards in the 1950s.
Fintech includes everything from simple mobile payment apps to managing your money more efficiently, moving funds digitally from one place to another and, as a Filipino migrant, how to send money to Philippines from Australia or from other countries to offer financial aid to your family back home.
Learn about the role of digital technology in sending money to the Philippines from abroad.
Simply put, FinTech helps you manage your finances and money more efficiently and precisely, including making payments and sending funds online from one place to another.
FinTech not only allows you to make payments online but also helps you with your financial management, which you need the most as a Filipino migrant, in digital ways.
Let’s briefly look at the benefits of using FinTech according to its users.
The following percentages are based on the results of several surveys conducted on the users of FinTech.
Let’s see what is required for the FinTech to work.
It is not that FinTech will work automatically. FinTech apps have to have the following to work.
APIs or financial Application Program Interfaces connect your bank accounts to FinTech apps safely and securely. It allows you to share your financial data, verify your identities, and transfer funds.
Several FinTech companies offer a mobile app that you can download and install on your smartphone. It allows you to access funds and have necessary insights anytime. A digital mobile banking app, an online money transfer app, a financial management tool or an investment platform are all different facets of FinTech.
Some of the FinTech companies, like ACE Money Transfer, offer web-based solutions too. It means that you can log into a company’s official website and easily do what you will through the same company’s smartphone app.
For example, you can send money from Australia to Philippines online via ACE Money Transfer’s mobile app as well as through the firm’s official website with little to no changes in operations except minor differences in interfaces.
Listed below are the main types of FinTech.
Now let’s study the emerging trends that have the potential to revolutionise the FinTech industry in the future.
Listed below are the 5 trends that are spearheading the FinTech revolution.
The rise and wide access and use of Artificial Intelligence (AI) in the financial world are putting stress on the existing financial institutions and practices to adopt these and transform immediately to avoid redundancy.
Chatbots are creating a tremendous wave of transformation in the financial world. Several financial institutions, including banks, are launching chatbots capable of conversing with customers like humans, with the conversation being personal and contextual.
Recent years have witnessed immense growth and diversification in Cryptocurrencies worldwide. With already around 10,000 cryptocurrency types in use, its use will undoubtedly grow in the future with deep impacts on the financial world.
Almost all FinTech companies focus on the needs and requirements of their customers, so they design their services and products according to them. It necessitates that every bit of communication between customers and financial institutions is recorded to achieve the goal.
Deep collaboration between banks and start-ups is essential for businesses to establish and grow. It enables both parties to stay close to each other and together keep an eye on what is happening in the market. FinTech is now focusing on this and striving to bridge communication gaps between banks and start-ups.
These are some of the future trends FinTech is spearheading worldwide.
You can find several FinTech platforms for your online money transfer to Philippines from Australia, Canada, Switzerland, the UK, Europe, or elsewhere offering you a range of benefits. But find a FinTech-driven online remittance transfer service provider like ACE Money Transfer that will offer you speed, safety, wider service access, and a one-stop remittance transfer solution in exchange for a low fee.
What is FinTech?
FinTech is also known as Financial Technology, which describes new and emerging financial technologies that aim at improving and automating the delivery and use of financial services and products.
What is required for FinTech to work?
FinTech needs the following three components to operate. These include APIs that connect your bank account to FinTech apps safely, mobile apps that allow you to access and manage funds efficiently and easily, and web-based solutions wherein a FinTech company offers you the same services as their respective smartphone apps.
How does FinTech benefit me as a Filipino migrant?
Using FinTech as a Filipino migrant earning a living abroad will help you save time, gain more financial control, save money, reduce stress and establish better and more efficient financial habits.
What are FinTech Types?
Some Popular FinTech types include banking, payments, Personal Financial Management (PFM), wealth management, lending and borrowing, and embedded financial services.
What are some of the emerging FinTech trends that I must know?
Emerging FinTech trends include the role of AI, the rise of chatbots, blockchain diversification, focus on customer experience, collaboration between banks and start-ups, instant payments, expansion of E-Wallets, and Biometric security.
Resources
(Philippine Statistics Authority | Republic of the Philippines (psa.gov.ph)
(Personal remittances, received (current US$) - Philippines | Data (worldbank.org)
