The rise of online banking and how to send money electronically
The way you and I manage our money has evolved drastically over the last decade or so and one of the areas that have seen tremendous development is how to send money electronically.
Advancements in technology and explosion of mobile devices have seen more people adopt digital solutions when transferring money around the world.
The capacity of mobile devices has steadily increased over the years and the mobile device has grown from being just a device for voice communication to one that drives the financial industry.
In the UK, a majority of the population has a Smartphone and the number of transactions carried out on the mobile device has been steadily increasing over the years. You and I are rapidly moving towards a cashless society.
The younger generation already prefers online banking over the traditional brick-and-mortar way of banking.
The prevalence of social media is also giving rise to payments being made via social media and all these developments will completely change the financial industry in the next decade.
Developing countries have also not been left behind. Mobile technology has been a driver of tremendous economic change by facilitating financial inclusion.
People who were previously financially excluded are now able to manage their finances more efficiently than the traditional banking way of doing things.
Banks have had to play catch up with the telecommunication companies.
Daily lives have been positively impacted by the developments in mobile technology and spreading the world’s wealth has become easier simply by how to send money electronically.
The Factors driving how to send money electronically
The economic and financial struggles of different economies around the world have been reflected by struggles in big banks and this has contributed to disruption in the market.
The financial crisis of 2008, for instance, destabilized the trust people had in banks and this led to low customer confidence in financial institutions.
This led to tighter regulation and greater scrutiny which made it more difficult for banks to move out of their traditional space.
Emerging companies were, therefore, better placed to come up with new and innovative solutions to meet customers’ needs and requirements.
Advancements in digital technology have therefore enabled startups like Altras money transfer to get ahead of traditional banks to facilitate financial transactions more efficiently.
Startups like Altras money transfer have harnessed the power of the internet and developments in mobile technology to provide alternative solutions on how to send money electronically in a fast, secure, low-cost and easy way.
The economy has also made it convenient for competitors of traditional banks to benefit from increased investments and growth from venture capitalists.
Investments in startups are on the rise as new forms of investment such as the crowdfunding revolution continue to drive the growth of startups.
The growth of crowdfunding has the potential to surpass venture capital investments in the coming years.
The growth of UK startups e.g. Altras money transfer
The UK has become a hub for startups to carve out a niche for themselves in peer-to-peer lending, digital currencies, and international money transfers.
The UK is a growing hub for investments and developments and startup companies like Altras money transfer have found a niche and are thriving.
The literate and tech-savvy European workforce is instrumental towards the growth of startups in mobile money transfer.
Further investment in tech education is still required however a mobile-savvy client base, multiple money channels and the flexibility of the European money transfer market has contributed to the rise of new digital firms in the market.
Previous developments in technology in the financial services sector were more geared toward companies making money.
Today, the crux of mobile phone technology is the user experience of the customer.
For startups focusing on providing mobile money transfer services, this has led to focused efforts with regards to how to send money electronically.
Digital money transfer companies like Altras money transfer are utilizing technology that is used in traditional banking and implementing it at a micro level.
The use of digital wallets, Apps, and social media integration has made the movement of money across borders faster and more secure and has provided a greater freedom of finance that was previously unavailable.
Traditional money transfer companies and banks in the past used to charge high fees for these services but with digital advancements, the costs of how to send money electronically have significantly dropped.
Mobile phones and not banks are now the entry point of accessing money around the world this has led to more flexible banking and increased financial inclusion.
The effect of money transfers particularly to developing countries by hardworking migrants who send money to their families back at home has grown exponentially over the last few years.
This industry was traditionally dominated by global corporations such as Western Union, MoneyGram and traditional large banks who used to charge a significant percentage to send money abroad.
With the emergence of digital money transfer companies like Altras money transfer and mobile technology advancements, this has caused major disruptions in this industry and dramatically reduced costs.
Other alternative solutions such as cryptocurrencies like Bitcoin have emerged though it still remains to be seen how secure and stable they are.
Challenges on how to send money electronically
There are still several challenges ahead facing digital money transfer companies.
The increased regulation of banks and de-risking presents additional problems to money transfer companies who are required by law to have a centralized account with a bank to hold and transfer funds.
It is also important to note that the number of money transfer companies in Europe have fallen from over 2000 a decade ago to about an average of 350 in existence today.
Nonetheless, money transfer companies like Altras money transfer are reshaping the industry that had otherwise been controlled for too long by a minority.
Innovation is constantly on the rise as new developments are better connecting payment infrastructures and instruments and how to send money electronically and electronic payments open up new territories and channels.
Aspects of technology that have influenced how to send money electronically
- No bank queues
Traditionally, banking was marked by long queues for hours in banking halls on Saturday mornings or during lunch hours in order to pay in a cheque or withdraw money.
Advancements in technology have resulted in online banking and mobile banking alternative solutions that now facilitate a more efficient system of online banking for both simple transactions and more complex issues.
Despite the adoption of online and mobile banking by banks, some customers still feel that their bank’s mobile solution is not up to par and mobile transfer services offered by digital mobile money companies are gaining popularity.
There are also customers who do not want to have a bank account but still require the money transfer services.
- Ease and convenience of going contactless
Technology advancements have gone beyond just mobile technology.
The development of contactless cards has been merged with mobile technology and this has resulted in apps that allow payments by tapping the phone against a point of sale terminal.
This technology has led to the rise of mobile wallets such as Google wallets whereby customers can store their loyalty store and gift cards, debit cards and credit cards on their phones.
This technology has also spread to the transport industry where you can now pay your bus or cab fare with a quick tap of your card.
- Data protection and Cybersecurity
The prevalence of the internet and the globalization of mobile and online technology have also given rise to new and innovative ways of breaching the financial sector.
Protecting customers’ financial information is one of the biggest areas of concern for any financial institution whether that’s a bank or a digital money transfer company.
Some common ways in which your money is easily targeted by crooks is through easy passwords, phishing scams and public computers.
It is therefore imperative that substantial and sufficient investments are made to ensure utmost safety and security on how to send money electronically.
- Different customer expectations
Traditionally, your parents were typically loyal to just one bank.
With today’s generation, it is less likely that customers are loyal to just one bank.
Customers are more financially savvy and will do research on products and services that they need and generic customer service is now a thing of the past.
Personalized and tailored customer experiences are the driving force in today’s world and this is being translated in the need to actively digitally engage customers.
- Greater competitition and more players
The financial space was traditionally a banks-only space and advancements in technology have opened up this space to different types of competitors such as digital money transfer companies.
Companies like Altras money transfer are now able to compete effectively in the money transfer space and keep up with the demands of today’s society.
Why use Altras for Money Transfer
- Altras facilitates instant in-app payments conveniently.
- You are able to send money on the go, anytime and directly from your mobile device.
- Your money is instantly delivered depending on the opening times of pay-out agents.
- You are able to calculate your transaction cost before sending money.
- You can make payments in both GBP and EUR.
- The service is available 24/7 and is backed by industry-leading payment security.