For many families that live in the developing countries, the money sent by their migrant relatives is nothing less than a lifeline. One in every nine people globally sustains on these funds sent by the migrant workers. On a larger scale, international remittance has become a prime contributor in the GDP of many Low and Middle Income Countries (LMICs).
Only in 2018, more than 200 million migrant workers sent over $689 billion to their respective countries. Out of the total amount, $529 billion went to developing countries.
The amount sent by the migrants constitutes only 15% of their total earnings. However, the interesting point to note is that the small proportion of migrant’s earnings makes up to almost 60% of his family’s household income.
READ MORE : How did FinTech transformed international remittance?
Today technology plays a key role at investment banks and other sectors in the financial arena.Some of the fastest, most sophisticated, and rapidly developing systems are now driving trading floors of Investment Banks.
Meanwhile, asset management companies are creating more and more composite investment management and risk analysis tools.
Moreover, across the financial sector, the opportunities provided by new technological events such as cloud computing and "big data" analysis are being discovered.Some people working in finance technology are focusing on building specific technological tools, while others are managing projects or planning a business’s use of technology from a commercial outlook.
You could be functioning directly with a particular business area, or working on technology matters that affect the whole association.Here are a few examples of particular roles technology teams play in finance:Responsibility to design a trading system, which allows traders to price products in a new asset class efficiently.Technology teams will be responsible to code the system from scratch, develop a feature that helpstraders to check the risk associated with any particular product, allow traders to get market information relevant to that asset class promptly, and cooperate with traders to make sure the system meets their requirements on an ongoing basis.Technology teams will analyze what should be done first and how to prioritize other tasks, redirect all procedures to backup systems and ensure they are working effectively, track the development of all steps taken, and make sure coordination between the technology team and other employees and clients is going properly.An innovative combination of finance and technology is changing the way of doing business and opening doors to progressive start-up firms.
Financial technology, often called FinTech, is completely changing financial transactions, services, and online security, says Eyal Nachum (the co-founder of Moneta International).
Due to the obsolete, expensive, and inefficient infrastructure of conventional financial services, Fintech is shaking things up.“The world is moving towards simplification and transparency.
The removal of intermediaries is one of the most significant advantages of DeFi.
For example, the remittance fees will become much cheaper for the global population, especially those living overseas and may need to send money regularly.
International transfers, such as Paypal, Xoom, Transferwise, and WorldRemit, are some of the apps that provide remittance services that are cheaper and faster.“Utilizing DeFi is more beneficial since users do not have to follow centralized rules.
Direct, peer-to-peer exchanges can occur, given that various values are agreed upon irrespective of the current offline values.
Dealers or third-party mediators can also be utilized.
However, transactional prices are significantly lower than when using traditional and offline institutions,” says Tony Jackson of Jenco, a decentralized service platform
