Money Transfer Summit Predicts Cost Decline, Highlights Regulatory Hurdles
The International Association of Money Transfer Networks (IAMTN) Annual Summit in London delved into the present state and future of the money transfer industry. Speakers foretold a reduction in transfer costs due to competition and simplicity, while also acknowledging challenges like regulatory hurdles and consumer adoption barriers.
The summit emphasized the role of digitalisation in facilitating remittances, particularly in regions with limited bank branch access. However, lack of financial awareness in some developing countries hinders digital adoption. Regulatory challenges, such as obtaining licences and forming partnerships, also pose significant obstacles to growth in emerging markets.
Chris Ostrowski, Head of Blockchain Engineering at Celo, noted central banks' cautious stance on cryptocurrencies in international money transfers. They recognise blockchain's potential to improve cross-border payment efficiency but have regulatory concerns and stability needs. Building consumer trust is crucial for new entrants in the remittance industry, as highlighted by Veronica Studsgaard, Vice President of Partnerships at MFS Africa. The Covid-19 pandemic has accelerated digital adoption in remittances, especially in LatAm, Asia, and Africa, but cash remains essential.
The IAMTN Annual Summit underscored the evolving nature of the cross-border remittance industry, with predictions of decreasing transfer costs and the potential of blockchain technology. However, challenges such as regulatory hurdles and consumer adoption barriers must be addressed for widespread growth and innovation.
