THE IMPACT OF FINTECH ADOPTION ON REMITTANCE TRAN

Abstract

FinTech is revolutionizing various aspects of financial services, reshaping how markets are served. The remittance industry is no exception, as FinTech solutions make transactions faster and more cost-effective. Remittance payments play a crucial role in the economies of emerging markets. This thesis examines the remittance sector in the context of these markets, aiming to understand the market dynamics and identify key factors for successful FinTech implementation.

The study focuses on three key areas: reducing remittance costs, encouraging FinTech adoption, and enhancing financial inclusion. It includes six mini case studies from leading remittance-receiving regions to evaluate the effects of FinTech adoption on transaction costs and financial inclusion. The research highlights influential factors such as infrastructure development, regulatory frameworks, financial intermediaries, compliance requirements, and the simplicity of technology.

It also investigates the role of traditional financial institutions within the FinTech ecosystem and explores how the financial sector can extend its reach to unbanked populations in emerging markets. By analyzing trends in the study countries, the thesis provides actionable insights for FinTech companies designing solutions for these markets and for regulators seeking to foster innovation while ensuring industry governance.

The findings suggest that FinTech challengers must tailor their solutions to leverage existing infrastructure, while regulators should create policies that balance innovation with oversight. Overall, the thesis demonstrates the transformative impact of FinTech on the remittance sector.