Financial Service Businesses in Asia-Pacific to Accelerate Adoption of Digital Remittance Solutions

Fintech companies to focus on offering scalable, leading-edge solutions that address changing customer needs, finds Frost & Sullivan

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KUALA LUMPUR, MALAYSIA - Media OutReach - 14 October 2020 - 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. This migration to advanced digital solutions has
suddenly been turbocharged with the current COVID-19 pandemic compelling businesses to keep pace with evolving customer behaviors and preferences.
The companies that have survived and even thrived in the current business
environment have proactively adopted digital
innovations and new business models.

 

Frost &
Sullivan’s latest thought leadership paper, Antifragility and
its Role in Driving a Digital Future in Asia-Pacific, 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 COVID-19 pandemic with robust value
propositions that can withstand an uncertain future.

 

To download the
complimentary whitepaper, please visit: https://bit.ly/3iQIue0

 

“The remittance market is characterized by
high fees due to the involvement of intermediaries and high capital outlay,”
explained 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-Pacific digital remittance market to increase
by 24.8% year-over-year (YoY), despite a decline of 18.8% YoY in global
remittance in 2020. Pre-COVID-19, remittance players such as Western Union that depended heavily on
physical infrastructure experienced lower remittance turnover rates than
players like Euronet and Merchantrade, which offer multiple
digital channels.”

 

Ramasamy K. Veeran,
Founder and Group Managing Director at Merchantrade, noted:
“During the lockdown, Merchantrade’s eRemit
online remittance service experienced a rapid upward trajectory as transactions
moved online. Some of the reasons for Merchantrade’s outstanding results in
2020 are its diversified and synergistic
businesses, the strength of its partnerships, and the scalability of its solutions.
Merchantrade now has a digital remittance solution and a digital platform that
connects most of its regional partner banks. It also has a growing ecosystem of
related digital solutions built through partnerships to help people within
their joint target segments.”

 

Solution providers like Merchantrade can showcase
antifragility and thrive as a result of disruption by offering
clients across industries leading-edge solutions that meet their specific needs.
Companies can excel in the remittance market by:

• Emphasizing partnerships with other market players to build an
  ecosystem that appeals to wider market segments while delivering an enhanced
  customer experience.
• Leveraging technology to develop beneficial and scalable use cases
  that can address different needs in the market.
• Adopting 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.

About Frost & Sullivan

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