When was the last time you bought something with physical cash or wrote out a cheque? In fact, how often do you even have to do transactions on your laptop rather than your phone? When did you last have a one-on-one appointment with your insurance broker? Pick any area of finance and youll likely find similarly big changes over the past couple of decades.
The technology driving those changes is broadly referred to as fintech (a portmanteau of financial technology). While the term is older than most people imagine, dating as far back as 1967, it only really hit public consciousness in the 2010s. Thats not an accident, either. It was around that time that fintech startups started coming into their own and directly taking on banks and other traditional finance providers.
Since then, many fintechs have gone from upstarts to household names and indispensable tools. Internationally, apps like Revolut, Monzo, and CashApp have changed the payments and transaction space, while the likes of Robinhood and Acorn have transformed savings and investments. Locally, Yoco and Snapscan have led the way in empowering tens of thousands of small businesses, while Naked and Pineapple have breathed fresh life into the insurance industry. But what is fintechs next big frontier? According to Future Forex CEO Harry Scherzer, theres a strong case for it being international money transfers.
What fintechs have done in other sectors shows whats possible in the international money transfer space, says Scherzer. While considerable progress has been made in sending small remittance amounts across international borders, there is still significant room for improvement when it comes to the experiences of businesses and individuals moving large sums of money internationally via traditional avenues.
According to Future Forexs CEO, most people and businesses tend to use their banks to make international payments. He cautions, however, that several pitfalls come with doing so.
