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2020 was marked by pervasive disruption, caused by the COVID-19 pandemic, which created growth opportunities for cross-border and remittance service providers. The market witnessed a rise in digital adoption rates (15% YoY growth rate in 2020). Rapidly advancing technologies, evolving customer expectations, and a changing regulatory landscape are driving the automation of cross-border and remittance services. Financial technology innovation—from mobile remittance and mobile payment to cryptocurrency—have captured the attention of customers, regulatory bodies, and market participants. From a service provider perspective, these rapid changes can threaten the traditional structure of the financial space; however, they can also open up opportunities for business growth.

The ubiquitous nature of mobile phones provides the necessary platform for consumers to perform convenient and safe digital financial services without hassle. For instance, with digital remittance services, consumers can carry out remittance transactions without having to go to a bank or a physical store. Moreover, as digital financial services evolve, and as mobile devices and data services become more reasonably priced, the merging of solutions and platforms implies that commerce can be conducted on all devices. Consumers will also look for more channels on which they can spend the digital currency they have received from their home country. As a result, providers need to create flexible solutions that can make adjustments quickly and seamlessly while continuing to find sustainable revenue streams.

Digital channels in remittance and payment platform-as-a-service (PaaS) solutions have received a boost due to dynamic consumer behaviour; however, to provide an enhanced customer experience, in-depth consideration of technology is required. Technology developers and neo bank providers will continue to innovate, deliver new features and services, and leverage new business models to raise PaaS appeal and adoption among a larger customer audience. Agile development, cloud architecture, and mobile-first solutions will be the key enablers of accelerated innovation and cost-effective provider operations.