Podcast August 11, 2021

Remittance Revolution: Lower Fees & Faster Speeds

The goal in banking should always focus on how to make the customer experience better. One of the biggest ways is the cost and time it takes to send payments. Looking at market trends, businesses like Remitbee have accurately predicted what the future will look like.

Cross-border remittances used to be slow and the fees could end up being upwards of 10%, but thanks to innovations like blockchain and better banking partnerships, that’s all changing.

Manos Yoganathan, Vice President at Remitbee discusses how he’s helping lead that change. 

What was discussed:

  • The remittance revolution
  • How blockchain technology is improving the remittance space
  • The challenge of partnering with banks in Canada

This post is based on an episode of Payments Innovation. To listen in, subscribe on Apple Podcasts, Spotify, or here and don’t forget to check out our YouTube!

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The remittance revolution

For a customer to send money to their beneficiary, a multitude of commissions are taken in the middle—averaging out to around a 10% fee. 

“We would see fees up to 10%, that were being lost in this whole transmission. And so how do we cut this down and give this money back to people?” -Manos Yoganathan>

With such a high cost to send money using the traditional remittance process, reducing the number of players in the game becomes imperative. 

With the goal of frictionless, cost-efficient, banking—Remitbee set out to make the business digital, allowing users to be virtually verified and send money more efficiently.

How blockchain technology is improving the remittance space

Continuing the goal of helping customers save money and with the success of the digital platform, Remitbee looks to a new way of bringing the customer experience to the next level: blockchain technology.

For many big banks, adopting blockchain technology has helped usher in a new world of remittance—one where money can be sent and received in a fraction of the time it used to take and a fraction of the cost. 

In the next five years, Remitbee looks to utilize blockchain and become a full-stack Fintech with a selection of products.

The challenge of partnering with banks in Canada

Creating banking partnerships in Canada can be difficult due to a historical reluctance for risk. To create those partnerships, there are three areas to excel in that can help prove your worth:

  1. Compliance
  2. Processes
  3. Global partnerships

But, as Fintech emerges, there’s potential to see a new positive appetite in Candian banking. 

“It is extremely difficult to go out and do local banking partnerships here in Canada. So to enter that market, you need to be very good at what you do.”— Manos Yoganathan>

To continue the conversation, visit www.remitbee.com

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