The world seemed to have halted with the deadly pandemic as so many people lost their lives to it. Never would humanity have imagined such a disaster that would stop all physical activities for everyone worldwide. But just like the ray of sunshine that beams through a glass window, magnifying its beauty and aesthetic, technological advancements such as artificial intelligence (AI) and its functions saved us from further disaster. The remittance industry was no less affected by the heinous pandemic.
Still, remittance service-providing companies mended their way through a situation like that using the help of AI and other technological advancements. Like several other developing countries, an increased inflow of remittances was noted in Pakistan during the pandemic since countless global expats from the country regularly send money to Pakistan from abroad.
What is Remittance?
Remittances are the funds that overseas workers transfer to their families back home for financial support. Migrant workers send most of these remittances back home to meet the basic requirements of family members back home. In a post by ACE Money Transfer, 81 per cent of respondents indicated they expect to transmit at least as much money in 2022 as they did in 2021. And, like in the previous year, 83 per cent stated their family and friends’ requirements had risen in 2021.
International money transfer through banks may be a costly and time-consuming operation due to the processing of cheques and money orders and the conversion of currencies. While veterans in the money transfer industry, such as ACE Money Transfer, extend their services by promoting themselves as faster, digital-based alternatives. Let’s just say they are the boss of the remittance industries by using modern-day technologies such as AI.
What is the Role of AI Technological Advancement in the Remittance Industry?
As the epidemic continues to push innovation in the sector, demand for contactless, online, digital, frictionless, and faster payments will grow in 2022. The payments sector will continue to flourish in 2022, from delivering support services to migrant workers wanting to send income home, finding the best way to transfer money internationally or allowing merchants new options to provide instalment financing to equipping corporations with new cybersecurity capabilities.
Artificial intelligence transforms the remittance collection process from an ad hoc, unstandardised set of operations to an assembly-line method. Template-free technology supports all types of remittances, making it future-proof and allowing financial institutions to meet additional e-payments with decoupled remittance information.
Key Benefits of AI Monitored Remittance Industry
Despite a glitch in 2020, demand for sending money across borders continues on the upswing, and firms that make it simpler and cheaper to do so prosper. Notably, online money transfer to Pakistan remained one of the increasing activities digitally in the developing world, and the same is the case with other low-to-middle income countries. This may be changed with the use of AI technology because of its efficient nature of work. Some of the main benefits that the remittance industry may reap from the technological advancements due to AI tech are as follows:
- Reduced lockbox fees: AI-enabled OCR automatically collects and checks remittance data, avoiding the need for bank lockbox services or in-house staff for keying in, thereby lowering expenses.
- Using an AI-based capture engine that gets wiser over time, you can get rid of templates: Even when the check stub is in an aberrant or unusual format, AI-based technology gathers all remittance data.
- Eliminate mistakes related to human data entry to achieve a 95 per cent posting rate: When posting check payments, self-learning OCR collects data with 95 per cent accuracy, reducing the requirement for exception handling.
- Make room for resources that will help you with credit and collection actions that are strategic: To focus resources on strategically critical A/R activities and automate manual chores such as email remittance aggregation and data reading.
The figure below portrays almost all AI technology’s benefits to the remittance industry.
What Helped with the Boom of AI in the Remittance Industry?
Cross-border money transfers or global money transfer helps individuals with food, healthcare, and lodging, especially while the coronavirus epidemic continues to affect people. The epidemic accelerated a great digital change in 2020, which has continued this year and will be accessible in the future. Direct-to-consumer digital offerings have been one of the trending AI helps for the remittance industry and may continue to grow with time.
Whilst outbreak impacted cross-border transactions due to diminished employment in wealthier nations and stay-at-home orders, new lower-cost digital transfer services are capturing a more significant portion of the market. Despite the fact that overall remittance flow decreased in 2020, digital remittances expanded rapidly and are providing significant benefits to individuals who can use them.
Drawbacks and the Need for Advanced Cybersecurity due to Digital Banking
While beneficiaries have grown more accustomed to making online payments than in the past decades, scammers are geared up to take advantage of their growing complacency. As a result, it is predicted that 2022 will be the year when cybersecurity firms introduce more powerful tools along with the help of AI technology to combat cybercriminals. The expansion of e-commerce, the development of non-cash payments, and increased online risks will continue to generate a greater focus on payments through cybersecurity measures.
According to a report by Argus Research, by 2025, the cost of cybercrime might reach $10.5 trillion. Regulators and financial firms like ACE Money Transfer use artificial intelligence, machine learning, data analytics, and cloud technologies to combat the problem. Government restrictions on cybersecurity and digital identification are also expected to be strengthened.
How is the Private Sector like ACE Money Transfer at the Top of its Game?
ACE Money Transfer is also aware of the issue. Almost two-thirds of companies want to increase their fraud detection budgets. In 2022, behavioural biometrics such as tracking users’ swiping, typing, and phone-holding tendencies will be widely adopted. Machine intelligence will also be used increasingly to throw up roadblocks, such as login questions if something goes wrong.
With the fast-moving pace of the world, ACE never stays behind. So, don’t miss a chance to become a part of the most technological remittance service provider and enjoy its benefits in the palm of your hands through ACE’s international money transfer app. ACE Money Transfer is the best choice given its lowest cost, the best exchange rates, and an unbreakable security mechanism based on AI, whether you want to send money to Pakistan online or to any other country.