New Aite Group research finds that while some consumers will cling to traditional methods for making cross-border remittances, it is only a matter of time before the brick-and-mortar money-transfer locations become obsolete.
Boston, October 31, 2018 — Cross-border remittances are a critical part of developing economies around the world and provide a lifeline for many as the world continues to globalize. A battle is waging in this industry sector as fintech firms challenge legacy players by employing digital-first business models. These players have firmly established themselves in the market by capitalizing on the way consumer behavior is changing in the digital era. Aite Group’s latest report, Cross-Border Remittances: Tapping Into the Power of Digital, examines U.S. consumer usage of digital payment methods for cross-border remittances.
“Digital remittances, especially mobile remittances, will become increasingly important as the world continues to more broadly embrace digital everything and as millennials and Gen Zers represent an increasing proportion of the U.S. consumer population,” explains Talie Baker, senior analyst at Aite Group.
This new Aite Group Impact Note profiles some of the companies within the cross-border remittance industry that have gone to market with a digital-first business model. It is based on a quantitative study that Aite Group conducted in Q4 2017 of 1,974 U.S. consumers. Aite Group also conducted interviews with eight executives from leading money-transfer organizations around the globe from May 2018 to June 2018 to support this report.
About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.