As per the world bank ‍

"Remittances are a vital source of income for developing countries. The ongoing economic recession caused by COVID-19 is taking a severe toll on the ability to send money home and makes it all the more vital that we shorten the time to recovery for advanced economies," said World Bank Group President David Malpass. "Remittances help families afford food, healthcare, and basic needs. As the World Bank Group implements fast, broad action to support countries, we are working to keep remittance channels open and safeguard the poorest communities' access to these most basic needs."

In 2021, the World Bank estimates that remittances to LMICs will recover and rise by 5.6 per cent to $470 billion. The outlook for remittance remains as uncertain as the impact of COVID-19 on the outlook for global growth and on the measures to restrain the spread of the disease.

Cross border money transfer involves cross currencies and cross financial institutions. All these hindrances seem reasonable to end up inefficient and expensive transactions from one cross-border to another. From one country to another, money moves slowly and inefficiently and also adds up as a core reason for high fees at the time of remittance and thus makes transfer frictional. Because of the limited connection between financial institutions and the system, the cost adds up in money transfer, making it damn expensive. It's time to have a neutral network to tie up connections between isolated institutions to make money transfer cheap and seamless cross border.

Online remittance and awareness

Lives of many families and economies globally are improved by the remittance industry. It is the fast-growing industry where remittance stood $689 billion in 2018 as per an estimate by the world bank. India ranked in the top position as the remittance-receiving country in the world.

The remittance industry is growing fast, and without fail or doubt it will keep growing. Better connectivity between countries, seamless visa processes and foaming globalisation is making it easier for people to move to other countries for bread and butter and better job opportunities.

To support rise in remittance, the major tool is technology. Technological advancement has brought a significant shift in the remittance industry. 

Let's understand how
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Internet arrival and evolution

The internet is a necessity. We need the internet everywhere. Be it a school or a big corporate house; the usage is irreplaceable in daily life. 

With the arrival of the internet, we experienced a drastic change in the international remittance industry. Ages back, people had to rely on demand drafts and money orders to transfer money. These methods were very time consuming and inconvenient. 

The internet has changed the complete scenario. The advent of digital remittance has made the life of people easier, convenient and fast. Now you have a simpler and affordable remittance service option. Now you get instant and digital remittance service from almost every national and international bank. Digitalisation and technological advent has made the life of remitters easy now they can transfer funds to their families instantly. 

Launch of mobile money transfer and online remittance platforms

When the internet made its way to mobile phones, the remittance industry witnessed a new transformation. Communication is the key ingredient in the remittance world, and mobile phones bridge the gap between remitter and industry. Now transfer made easy by most of the bank through mobile banking; transfer anytime, anywhere easily. SMS alerts and mobile phones have made it easier to track transactions, refunds or discrepancies.  With the introduction of 5G service, we expect more advancement in the remittance world. 

New dimension in money transfer businesses

In the form of digital remittance, money transfer businesses are experiencing new dimensions. Just through simple click now avail remittance service and transfer the amount to your loved ones. Transfer time has reduced drastically with the new feature of instant money transfer in the realm of remittance service. The FinTech world has a global footprint, and anywhere in the world, it can easily access remitters. This proves extremely useful to those who use the internet and mobile phones to remit online to their loved ones.

How has technology become an integral part of the remittance industry?

Now people's preferences and needs can be met and moulded by using technology as it proves to be the biggest strength. Earlier to save transfer fees, migrant workers and expats believed in saving a considerable amount before sending it to loved ones. Nowadays, remittance is made easy with the rise of technology. People can transfer in just a few clicks through their mobile phones. In many countries to encourage remittance flow, government incentive is introduced along with relaxed regulations for the transaction based on technology backed legal channels.

Let's understand remittance and its impact on the online money transfer industry. The game of global remittance is pumped by invention of payment aggregators.

Sum up 

With continuous development comes new opportunities, as also the world is evolving fast. In every few decades, the remittance industry witnesses a technological shift. We don't know what the future holds, but it's time to get digitally aware and active. Upcoming technological advancement every year comes up with extra features, and thus, the future looks bright. Also, the future of the remittance industry looks brighter with highlights.