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The Fintech Phenomenon: Understanding the New Trends Shaping Money Transfers to Senegal from the UK

The Fintech Phenomenon: Understanding the New Trends Shaping Money Transfers to Senegal from the UK

20 Oct 2023


One of the favorite travel and expatriate destinations for migrants from Senegal is the UK. Since the UK is one of the most developed countries worldwide, job-seeking migrants from Senegal come to it to find jobs. They earn a living and send money to Senegal to their families back home.

A report by Springer Link said that about 1 million Senegalese migrants are living in foreign countries to earn a living. But they are not living abroad for jobs alone. Many have gone abroad to seek good quality education.

Senegal has a poor economy, but the Senegalese diaspora is making a significant contribution to the country’s economy through the remittances they send back annually. A report by the World Bank said that the quantum of remittances Senegalese migrants sent back to Senegal in 2022 was $2.71 billion. This amount is significantly low if compared with the inward remittances to other African countries.

Remittances to poor economies are a financial lifeline

A dip in the quantum of remittances, therefore, can be a cause for concern for the respective governments.

You have been sending money online from abroad. Right? But do you ever bother to know what offers you the best way to send money to Senegal?

Remember that this question refers to the technology instead of the service providers.

Well, the simple answer is the advent of FinTech (Financial Technology) that has made it easier for you to transfer funds from one place to another.

From offering you ways to send money from one place to another to offering you the cheapest way to send money to Senegal from the UK, FinTech has provided you with all you need in international money transfers.

But since FinTech is rooted in technology, it keeps evolving, with which come new and emerging trends in the industry regularly.

So, do you know what those new and emerging trends are in FinTech? And what impact will these trends have on your money transfers to Senegal from the UK or elsewhere, for that matter?

If you do not know the answers, then continue reading because this blog aims to answer these critically important questions. But for a better understanding, let’s first see what FinTech is.

What is FinTech? A Basic Understanding of the FinTech Phenomenon

FinTech is the combination of two words, ‘Financial’ and ‘Technology’. It refers to and covers any app, technology, or software that allows you to access, manage, and get an insight into your finances virtually and digitally.

FinTech also allows you to make financial transactions through digital means.

The traffic to FinTech rose exponentially during the last decade. Because FinTech has helped its users overcome financial challenges and also helped them achieve their financial goals.

Owing to these benefits, people have come to rely on FinTech to the extent that now you see many people use it for a range of purposes, including banking, investments, lending, and a host of other purposes and benefits.

Impact of FinTech on Users

According to a report by Plaid’s FinTech Effect, the users of FinTech have sought the following benefits from using FinTech.

  • 58% of users said it saves them time
  • 48% of users said it makes them feel that they are in control of their finances
  • 46% of users said it saves them money, which is what you direly need each time you send money from UK to Senegal to offer financial support to your family back home and add to it by saving on your money transfers
  • 34% of users said that they feel less stressed about managing their finances
  • 27% of users said it helped them recover from financial mistakes

This is how FinTech has impacted your financial behavior.

Types of FinTech and FinTech Products

The following are the main types of FinTech and their products.

  • FinTech Banks
  • Digital Payments
  • Personal Financial Management (PFM)
  • Wealth Management
  • FinTech Lenders
  • Embedded Finance

These are some of the types of FinTech and their products. But before using these products, learn about the security while using FinTech here.

Let’s now look at the emerging FinTech trends.

What are the Emerging FinTech Trends?

Some trends in FinTech have already been around for a while now, while some are just gaining traction of late. Let’s take a look at some of these latest trends below.

Virtual Bank Cards

These are the digital bank cards like the debit card and the credit card. But you wonder about the difference. Right? Well, the difference is that these virtual bank cards live in your e-wallet instead of your pocket! These are offered both by traditional and as well as neobanks.

Embedded Finance

Embedded finance is about integrating financial services into non-financial apps and websites. A prime example of embedded finance is how Twitter (now X) is being revamped as a platform where Elon Musk said it would be used for online purchases and all other purposes the platform was not originally meant to serve.

So, the time may not be far when you may well use X (formerly Twitter) for your every money transfer to Senegal from overseas!

Buy Now, Pay Later

Buy now, pay later (BNPL) is a trend that is gaining popularity as it offers immense convenience. However, the challenge with this trend is that the people using BNPL run the risk of falling into higher debts.

Digital Mortgages (PropTech)

The process of mortgage loans is complex and heavily bureaucratized. However, the emergence of digital mortgages is gaining traction among entrepreneurs. And through this, the hurdles in mortgage loans are done away with, and the process is getting simpler and quicker.

Alternative Payment Flows

From the traditional modes and flows of payments such as wire transfers, credit and debit cards, and so on, the advent of FinTech has created several new and diversified modes of payment and flows. Remittance transfer companies are a prime example of this.

Artificial Intelligence and FinTech

The use of AI tools in FinTech is another fast-emerging trend and is rapidly gaining traction among users. These AI Chatbots allow customers self-care and are also reducing the workload for customer support, which was immensely loaded previously.

A few other trends include:

  • Alternative Lending
  • StableCoins (new generation of Cryptocurrency)
  • Capital Market Digitization
  • Biometrics
  • Gamification
  • Distributed Ledger Technology (DLT)
  • RegTech
  • Open Banking APIs
  • Microservices and Modularity

These are some of the most important emerging FinTech trends to watch out for in 2023.

Wrapping Up the Discussion

If you want to wait for these trends to swing into action fully, you can buy all the benefits of these trends you can have and enjoy already if you send money online to Senegal with ACE Money Transfer as you will get speed, safety, wider service access and availability, live and market-competitive exchange rates, and much more from just one stop in exchange for a paltry amount as fees. So, why bother waiting?

FAQs

Is the future of FinTech bright?

Yes. The future of FinTech is pretty bright. Because more and more people are shifting to FinTech for their financial needs. In addition, FinTech is also attending to more pressing needs like risk mitigation, AI-driven self-service, open banking, and so on.

What FinTech trends apply to smartphone apps?

The FinTech trends that apply to your smartphones include microservices, open banking APIs, embedded payments, gamification, biometrics, BNPL, virtual bank cards, and AI and ML-based user verification and risk management.

What disruptive FinTech trends should I follow in 2023?

The important and disruptive trends you should follow in FinTech in 2023 should be those that benefit you directly. You should avoid following all the FinTech trends blindly in a bid to use cutting-edge technology.

How does using FinTech Benefit me in my international money transfers?

Using FinTech benefits you in several ways in your international money transfers. Its primary benefits include ease and convenience to transfer funds, speed and safety of your money, low fees, and unique ways to transfer money away from conventional methods. 

How long do I have to wait until FinTech trends benefit me in my money transfers?

If you want to send money online to Senegal from UK to deliver funds swiftly with safety and security in exchange for a low fee and also wish to get competitive exchange rates, then the wait is over already. All of it and much more are taken good care of by ACE Money Transfer.

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