Insights

Everyone Wants to be a Fintech – Here’s How You Can

Digital innovation has long been gaining momentum. With more consumers turning to e-commerce, businesses are spurred to look at how they can revamp their business model to capture this growth. Many companies have branched out from their original business model into the payments space to tap into the huge potential of the online payments business. Online chat platform WeChat, for example, has diversified to offer payment services, while Grab, which started out as an Uber clone is today an indispensable part of consumers’ daily lives, thanks to the suite of financialservices it offers.

We are at a point where banking as we know it is undergoing a fundamental change. Today, we can envisage a future wherein every company has the opportunity to benefit from fintech and derive a significant portion of its revenue from financial services. The trend of moving towards online transactions may now be more of a necessity than a strategic decision, making it crucial for businesses to be flexible with their offerings.

This phenomenon is further exacerbated by social distancing measures implemented across the globe due to the pandemic. According to Forbes, the money transfers space has seen four years’ worth of digital growth in the two months following the COVID outbreak [1]. With face-to-face interactions and cash transactions diminishing, the shift towards digital platforms is eminent across age groups and not just among millennials or digitally savvy consumers [2]. The inability to cater to customers in person, due to the pandemic, has paved the way further for service providers to explore new revenue streams.

At Nium, we understand how difficult it is for a company to introduce remittance or money transfer services at scale. While continuing to be an expert in consumer remittances, we have expanded and scaled our offerings to meet the needs of SMEs, Financial Institutions, Enterprises and other payment service providers. We understand the challenges of creating a tech stack that will support the payments flow, but more importantly, we know the difficulties when it comes to obtaining regulatory licenses for international payment transfers. This is why Nium has introduced Remittance-as-a-Service.

Hailed as the “Shopify for Fintechs”, our Remittance-as-a-Service (RaaS) platform makes it more accessible for banks, financial institutions and large enterprises to become providers of payment services and offer remittance services on their own digital platforms. With a one-time integration that includes all the countries as they come on board, our holistic package enables businesses to customise their front end and go live in a just a few weeks.

Nium’s RaaS capabilities are currently available to businesses, banks and FIs located in Australia and Singapore. Our proficiency and robust experience in consumer remittances equips us to expand our offerings to meet the needs of large enterprises, banks and financial institutions. In addition to our ability to send payments to over 90 countries, we offer enhanced real-time payment capabilities in 65 countries. Consumer brands that do not have the licenses or regulatory perspective to offer remittances can leverage our RaaS solution and benefit not just from our infrastructure, technology and expertise, but also from our portfolio of licenses, hard-earned by building trust with financial regulators in over 40 countries. This combination of regulatory and tech assets is unique to Nium and is at the core of our unique value proposition.

Technology companies that require control to make payments to their partners could also take advantage of this function, which could be extended to their customers for moving money across markets. Banks aspiring to go ‘branchless’ could rely on this technology and collaborative ‘as-a-service’ approach. By keeping remittances within their ecosystem using RaaS, banks can offer a more valuable end-to-end experience to their customers.

Nium recently raised a new round of equity funding, joined by Visa, BRI Ventures and other existing investors. With the infusion of new capital, we plan to further develop our payment and financial infrastructure, including outreach to consumers, businesses, banks, and other financial institutions. This will enable us to beef up our existing remittance payment rails, in turn providing a more robust remittance offering for businesses tapping onto our RaaS services.

In this era of digitisation, pivoting/flexibility is critical to a company’s growth plan. Whether it’s introducing a new service or changing an offering, businesses need to find a way to add new revenue streams, enhance customer experience and improve customer loyalty, by riding on the offline to online migration trend. Nium aims to make this transition seamless for enterprises looking to venture into fintech or to offer payment services. The thrust from our investors has strengthened our efforts to help businesses embrace technology, not just to survive, but to thrive in the digital age.

 

[1] https://www.forbes.com/sites/danielwebber/2020/05/28/how-money-transfer-companies-squeezed-four-years-of-digital-growth-into-just-two-months/#59512434a7b6

[2] https://www.straitstimes.com/singapore/more-consumers-companies-embracing-tech

Nium Podcast: Remittance as a Service

Listen in on how Nium’s remittance-as-a-service solution might just be the strategic tool your business needs for its financial arsenal.