Note: Global interbank messaging giant SWIFT has already started using this blockchain technology for cross-border transactions, following a successful proof-of-concept with R3’s Corda platform.
Impact of AI on cross-border payments
According to Accenture’s report, nearly 3/4th of the banks, worldwide, will deploy AI interfaces as their primary point for interacting with customers.
Basically, artificial intelligence and chatbots help customers to interact better with the system in real-time. AI acts as the face of the brand and hence, chatbots are considered as a viable commercial solution for banks and other financial institutions. Talking about cross-border payments, AI maximised the efficiency and effectiveness of the transactions.
This is how AI revolutionises cross-border payments:
Impact of blockchain on cross-border payments
Blockchain technology holds the potential that is needed to transform the international monetary system. Cross-border payments through blockchain technology are an excellent example of new payment innovations.
Over two decades ago, Bill Gates said, “Banking is necessary, but banks are not”. And, his words are now turning into a reality. While physical banks are still around, online banking, mobile banking, artificial intelligence-powered chatbots and voice bots are coming into the picture and are transforming the entire sector.
This is how blockchain improves the cross-border payments experience for all involved parties:
Impact of social media on cross-border payments
Recently, ICICI Bank has launched a cross-border remittance facility that can be used by NRIs for sending money to their friends and family in India through social media like WhatsApp and email.
In this booming technological world, never ignore the power of social media. it not only helps in branding and digital marketing but also strengthens industries like Fintech. Companies like Facebook and messenger apps like WhatsApp are also willing to enter the picture. They are collaborating with the fintech companies so that international money transfer transactions could take place on their respective platforms. Currently, the process is in its developmental stage and has not been introduced yet in these platforms. However, Facebook is one step ahead. It has already secured an e-money license in Europe. This step certainly makes it clear that the company is soon going to knock the door of other countries. Also, it is not going to confine its peer to peer messenger payments to the US only.
This is how social media facilitates cross-border payments:
The technology is not as simple as it seems. It also has got several challenges that need to be overcome. The technology should be useful for the average person as well and not only restricted to a certain group of people. Also, chatbots and Robo-advisors must be intelligible. One of the major challenges is making people accept this new technology and encouraging them to adopt it. According to the stats, as of now, more than 90% of the international money transfer transactions are made offline. Hence, it is quite hard to make a quick shift to new technology. Further, the unwillingness of banks and financial sectors to embrace technological changes can also be a hurdle.
Cross-border payments supported by technologies like blockchain and artificial intelligence provide significant advantages to businesses and consumers. And, the power of social media adds icing on the cake. Technology-based cross border payments are cost-effective, almost immediate, secure and transparent. Soon, the world is going to experience a new era of international financial transactions, any thoughts on this?
Sonal Mehta is a Content Lead at SoluLab, a leading Enterprise Blockchain, Enterprise Mobile Apps and Web development company, started by ex-vice president of Goldman Sachs and ex-principal software architect of Citrix. SoluLab Inc provides full spectrum, 360-degree services to enterprises, startups and entrepreneurs helping turn their dreams into awesome software products.