Financial service businesses in Asia-Pacific to accelerate adoption of digital remittance solutions

Digital transformation has traditionally been a lengthy, elaborate process. Organizations must develop clear business objectives to act and react to market changes before replacing legacy infrastructure with digital infrastructure.

The current COVID-19 pandemic has engendered this migration to advanced digital solutions, compelling businesses to keep pace withย evolving customer behaviors and preferences. The companies that have survived and even thrived in the current business environment have proactively adoptedย digital innovations and new business models.

Digital transformation

Frost & Sullivan‘s latest thought leadership paper,ย Antifragility and its Role in Driving a Digital Future in Asia-Pacific,ย analyzes the critical need for Asia-Pacific companies to transform digitally and be resilient against future disruptions and dynamic markets.

It examines how multi-channel digital solutions help digital remittance companies reduce their dependence on physical infrastructure and become more resilient, sustainable, and digital to emerge stronger from the pandemic.

“The remittance market is characterized by high fees due to the involvement of intermediaries and high capital outlay,” explainedย Quah Mei Lee, Associate Director, Information Communication and Technology at Frost & Sullivan.

“The new digital solutions, which can help businesses reduce fees and expand the market, have already positioned the Asia-Pacificย digital remittanceย market to increase by 24.8% year-over-year (YoY), despite a decline of 18.8% YoY in global remittance in 2020.

Digital solutions and platform

Pre-COVID-19, remittance players such asย Western Unionย that depended heavily on physical infrastructure experienced lower remittance turnover rates than players likeย Euronetย andย Merchantrade,ย which offer multiple digital channels.”

“During the lockdown, Merchantrade’sย eRemitย online remittance service experienced a rapid upward trajectory as transactions moved online,โ€ Ramasamy K. Veeran, Founder and Group Managing Directorย atย Merchantrade,ย noted

โ€œSome of the reasons for Merchantrade’s outstanding results in 2020 are itsย diversified and synergistic businesses, the strength of its partnerships, and the scalability of its solutions.โ€

At present, Merchantrade has โ€œa digital remittance solution and a digital platform that connects most of its regional partner banks.โ€

โ€œIt also has a growing ecosystem of related digital solutions built through partnerships to help people within their joint target segments,” he added.

Anti-fragility

Solution providers like Merchantrade can showcaseย anti-fragilityย and thrive as a result of disruption by offering clients across industries leading-edge solutions that meet their specific needs.

Specifically, companies can excel in the remittance market by emphasizing partnerships with other market players to build an ecosystem attractive to wider market segments while delivering an enhanced customer experience.

The paper suggests that companies have also to leverage technology in developing beneficial and scalable use cases that can address different needs in the market.

It also suggests that companies have to adopt long-term, sustainable business models with a 360-degrees perspective that takes potential adversities into account to remain resilient.

Acknowledging the shift towards technology-first by offering effective and efficient digital solutions that are less dependent on physical infrastructure is a move in the right direction, the paper said. (amm/Media Outreach Newswire)

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