The money transfer industry abroad has undergone considerable changes since the beginning of the last century, mainly due to technological advances. Formerly the domain of the banks and forex brokers of the high street, he has witnessed the arrival of several FinTech companies. Where is FinTech, can the use of Big Data be far behind?
Xoom, a money transfer company based in the United States, analyzes all data related to its transactions with the help of big names in the world of big data. The system successfully spotted an anomaly in 2011, which may have gone unnoticed. He saw a pattern of a large number of New Jersey Discover Card transactions, and while they seemed perfectly legitimate, they were the product of a criminal group. In one way, the analysis of large data saved the day.
What other purpose can big data serve?
Considerable information comes in the treatment of a transfer of money abroad. This information includes the full names of the sender and the recipient, the names of the two countries, the amount transferred, the currencies involved and the method of payment. There is a good chance that the service provider will also know the reason for the transfer.
By using large international data transfer companies, companies can easily identify underlying trends and use the results to formulate appropriate strategies. For example, a money transfer company abroad can benefit from knowing how much money their clients are transferring, how often they make transfers, when they send money to the bank. money to multiple recipients, and why they prefer to use a particular service.
The big data aggregation also brings information about devices, locations and timestamps. An example of how this information can be used is to determine whether customers are making transfers from home or their office.
Take this example into consideration. M-Pesa, based in Kenya, is a low-value money transfer operator based on a mobile phone. Initially launched to simplify money transfers, it has been extended to microfinance, payment of wages and the purchase of goods and services. The company has about 78,000 branches in the country and about 85% of the country's population uses its services. The company can use its bulky data to obtain vital information on indicators such as remittances and disposable income.
The use of Big Data to gather different types of information can seem like a daunting task, especially if a company already has a large customer base. However, since a number of money transfer companies now aim to offer highly personalized services, analyzing big data in the right way can bring valuable information.
The intelligent way of looking at big data
The information that accompanies Big Data is bulky. It is therefore crucial to know what is useful and what is not. Foreign money transfer companies that are turning to big data should have specific focus points in order to create personal connections with their customers. Identifying and acting on the dominant trends will remain important for FinTech companies such as OFX, WorldFirst, CurrencyFair, TransferWise, and WorldRemit. Consumers, on the other hand, will feel more empowered by being able to express their needs.
Big data allows FinTech money transfer companies to gain a deep and accurate understanding of their clients. When used in the right way, big data provides insight into aspects such as preferred payment and transfer modes, why transfers are made, and the frequency with which transfers are made. Incidentally, the use of large data will benefit money transfer companies abroad and their clients.