Contents

Part A: Literature Review

Payments and Remittances

The remittance is the advice that is a letter which is sent to the customer for the supplier to mainly inform him about the invoices that are paid. There are customers who are paying for the cheque and the remittance advices are mainly accompanied with it. There are advices which includes the advices that are not important mainly due to the help and the accounts raceable department for matching the invoices for the different payments. The advice includes the invoice numbers where the payments are seen to be tendered. The countries use cheques where company invoices are designed for handling the customer return of invoice with payment. The countries make use of the payment methods and the invoices are standardized with bank transfer order forms. It includes the fields that are for the invoice which is sent for the client number and are also encoded for the computer readable format. The employee opens the incoming mail which is then compared for the cash which is received and the amount that is shown on the advice of remittance.

The blockchain is considered to be huge where the emails and the interest are found to predict that there are huge amount of disruptions for industries. There are financial industry with multi-faceted sectors that include current financial system relying on the wire transfer that is backed by traditional banks and other institutions (Gomber et al., 2018). The innovation means that the smartphones are working on declining cost of hardware with digital transactions working on providing better options for the payments that could be processed instantly. The remittance industry is no longer only for the pricing competitiveness but also has a major horizon that is set for different dimensions. The industry works on high cost transfer and the limited methods of money distribution, with limited options of brand and the deal with money.

The remittance transfer has been seen to be getting disrupted with the models that tend to encompass different benefit of costs, and the customer experiences. Here, the remittance models come with the cash transfer, internet banking, mobile wallet and the digital payments (Shrier et al., 2016). The other problems are then addressed through strict regulations that forces the banks to move out the remittance industry and then close the accounts of firms that are mainly for money remittance. The consideration of the banks is that it claims the real international money transfer through the use of blockchain technology where there are bank transfers that are clear with underlining potential. Fintech Innovation Landscape requires to work on the disruptive effects from new business models and marketing mechanism. The complementary effects comes with enhancing business models, where the blockchain based markets and the initial coin offerings are set through cross-border payments. The social trading and digital wallets are important with personal financial management. The Fintech Revolution has been changing with financial service operations where the performance analysis and the productivity requires to work with waiting line analysis or the capacity planning and personal scheduling. The approaches are changing through creating a better basis for the harmonizing of investments with business partners and competitors. The lower transaction volumes at a physical branch setup requires to handle the reduced costs with stronger incentives for banks to reduce the footprints of branch. The payments are for the backwater of finance (Agrawal, 2017). The industry is seen to handle the extreme disruption where the banks and the credit card companies are seen to be facing an uncertain future with the upstart of the financial technology. There are lining up of the challenges with the payments for the providers to offer and meet the customer demands with faster and the cheaper services. The regulators are set to ratcheting up the pressure on the banks with cutting the fees from processing payments with forcing them to be cooperative with different challenges. The regulators need to work on ratcheting the pressure with handling traditional providers with payment services that are for the onslaught of cyber attacks with increased sophisticated hackers (Liang et al., 2015).

Identification of contributors

FinTech are considered to be the major technology people with innovation methodologies, companies and the new services. The firms in the financial service industry requires to focus on the tracking of new ventures with start-up areas that work on energy, transport and the Internet of Things. The Fintech Revolution is mainly focusing on the larger amounts of the capital which are important for the innovation of technology and financial services (Clemons et al., 2017). The economists need to work on handling the wealth management with peer-to-peer lending to the crowdfunding. The factors include the startup with new technologies that are for new services as well. With technology innovation and the economic growth, there is a need to focus on the advancement of the transformative effects. Here, there are IBM Deep Blue factors which include the digital and the exponential forms which are set with combinatorial factors. The research is about the technology elements like the components, products and the services. It requires to work on application specific circuit boards. The research is seen for the technology innovation with components, products and the services that are important for Lego building block style. There are groups which are working on offering a cheap and a faster way for the transfer of money through the online services (Liu, 2018). There are banks which tend to respond for the rapid growth which are for the fintech companies. There are high profile incidents that are form the cyber criminals with working on requiring the lenders to open up the access for the data to the clients for the third-party providers. The third party tend to gain the customer permission with accessing account which could handle the payments and then offering the tailoring of financial advices. The banks need to work on acting over a virtual consolidation where less consumer data and the banks would be entering into a negative feedback look where the ability is to compete with steady declining and eroding of a competitive advantage. With time, it is seen that there are migrants who are working on handling the development through the job paying higher rates than those of the home markets. With the migrants shuffling, it is seen that the family members and the friends are able to work on cross-border money transfer which is for the remittances (Coopers, 2016). Here, the companies are working on facilitation of the cash pickups where the digital first players are emerging with the leveraging of the mobile and the other online platforms for competing in the legacy firms with scale and fees structure. The fees tend to be a main point for the migrants where they are able to send the money home and also offer a lower fees which is given for the startups and is considered to be a major advantage as well. The remittances are the payments which are for the payments that are seen to be sent for the foreign workers who are working with the relatives. The massive global industry is working on the high imbalanced approach with the countries dominating on how the volumes can be sent with receiving of the same (Gomber et al., 2018). The fintech approach includes handling the sharing economy which is embedded with the financial services, with mainstream of products and services. The fintech innovation landscape includes the forms with observing the constructs with P2P electronic cash system proposal that is related to Bitcoin that is presented through banking technologists and the technology entrepreneurs. The routine innovation requires a regular approach with customer experience dimensions that are able to assess the functionality that is sufficient for the products and new services as well (Shrier et al., 2016). The digital players are then finding the opportunity for the updates of remittance where the lowering of overhead costs and passing savings is through the lower fees.

Part B: Critical Analysis

There is a need to focus on how the regulatory implications are set through identifying the disruptions and analyzing alternative responses. In India, RBI and Fintech in Europe and USA requires to handle the remittance and the payment forms. It requires to focus on potential consumer protection, marketing efficiency and the stability issues of the financial standards. The rapid technology advancement is for banking ecosystem where the client expectations are generally influenced through the use of new technology (Liang et al., 2015). Hence, FinTech Competitors require to match with service marketplaces. The widespread adoption of smartphones holds a new and integrated service which is set through intelligent analytics. The marketplace lending is through scrutinizing the processes with client commitment and the pooling with structuring that requires valuation and optimization. The issues are related to the integrity of data, where the mispricing or instability is to use the third-party models. FinTech Regulations are focusing on evolving the concepts, with implementing timelines and regulatory bodies. These are set through using U.S Securities with Exchanging Commissions (Liu, 2018). The remittance is the money which is sent across without any services in return or the official record of exchange. We have to reserve payments for the money transfer where there are goods exchange and the services that are mainly in between the business and the customers. The remittance is about the money transfer where there are international borders or the distant regions in the country (Rillo et al., 2018).

-potential consumer protection: The consumer and the retail payments sector is considered to be growing fast in terms of innovation with new payment capabilities. Here, the growth is encouraged through the use of better payment experiences and the enhancement possibilities for the consumer. The banks are operating in the wholesale sector where the progress and the development is in retail and consumer space. The consumers need to make payment through mobile wallets to enable the digitized version and then handling the risk averse environment which is for consumer receptiveness to mobile wallets (Gozman et al., 2018). The risk mitigation has a focus on biometric data and tokenization that allow the payments to be authorized without any need for disclosing any credit details.

-market efficiency: The market efficiency is set and defined through the changes in the retail payments. The innovation and new solutions need to focus on how banks are able to adjust the changes with the global financial crisis that are handled through compliance related projects. There are markets and the other sizes to ensure about positioning with leveraging the creativity and flexibility for the non-bank players (Varga, 2017). This requires handling the highest ratios of IT with spending higher proportion of revenue. The digital currency-based solutions and potential is based in terms of settlement with exchange of values.

 -financial stability issues

FinTech needs to work on the handling of consumer banking with funds transfer or the payments. Here, the examples are related to handle the innovation that manifests with alternative credit models. The rapid consumer centric lending processes need to focus on how one is able to handle the surge of new technology that is for the payment processes (Mellon, 2015). The asset management and insurance is considered to be for disruptions in making inroads and then handling asset management. This requires matching with other sectors where 51% of the asset managers where the industry will be disrupted (He et al., 2017). The disruptions of fueling in customer centricity might have problems with handling the enhancement of interactions and building trust relationships. it requires to work on trading and navigating the changes in banking, transferring funds and payments properly. The key trends are related to enhancing customer experiences which are self-directed towards focusing on different segments for the money to transfer.

References

Agarwal, R., 2016. Payment Banks Redefining Indian Banking: An Empirical Study. Journal of Applied Management-Jidnyasa, 8(1), pp.1-8.

Agrawal, R., 2017. Disruption in Banking in Emerging Market Economy: An Empirical Study of India. Economic Analysis, 50(3-4), pp.20-31.

Clemons, E.K., Dewan, R.M., Kauffman, R.J. and Weber, T.A., 2017. Understanding the information-based transformation of strategy and society. Journal of Management Information Systems, 34(2), pp.425-456.

Coopers, P.W., 2016. Blurred Lines: How FinTech is Shaping Financial Services. Global FinTech report, pp.1-36.

Gomber, P., Kauffman, R.J., Parker, C. and Weber, B.W., 2018. On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services. Journal of Management Information Systems, 35(1), pp.220-265.

Gozman, D., Liebenau, J. and Mangan, J., 2018. The Innovation Mechanisms of Fintech Start-Ups: Insights from SWIFT’s Innotribe Competition. Journal of Management Information Systems, 35(1), pp.145-179.

He, M.D., Leckow, M.R.B., Haksar, M.V., Griffoli, M.T.M., Jenkinson, N., Kashima, M.M., Khiaonarong, T., Rochon, M.C. and Tourpe, H., 2017. Fintech and financial services: initial considerations. International Monetary Fund.

Kazan, E., Tan, C.W., Lim, E.T., Sørensen, C. and Damsgaard, J., 2018. Disentangling digital platform competition: The case of UK mobile payment platforms. Journal of Management Information Systems, 35(1), pp.180-219.

Liang, T.S., Venkataramanan, S.N. and KISHORA, A., 2015. Remittances without borders.

Liu, C., 2018. FinTech and Its Disruption to Financial Institutions. Organizational Transformation and Managing Innovation in the Fourth Industrial Revolution, p.104.

Mellon, B.N.Y., 2015. Innovation in Payments: The Future is Fintech. The Bank of New York Mellon Corporation, pp.13-17.

Rillo, A.D. and Levine, J.J., 2018. Leveraging Remittance Technologies for Financial Inclusion in Asia. LABOR MIGRATION IN ASIA, p.3.

Shrier, D., Canale, G. and Pentland, A., 2016. Mobile money & payments: Technology trends. Connection Science & Engineering, Massachusetts Institute of Technology. MTI.

Varga, D., 2017. Fintech, the new era of financial services. Vezetéstudomįny/Budapest Management Review, 48(11), pp.22-32.