With populism on the rise in all corners of the global political landscape, anti-migrant sentiment rife across mainland Europe, and with Brexit around the corner, you’d be forgiven for thinking that the world is on course to become increasingly inward looking. Yet whilst such geo-political trends are clear to be seen, another force entirely is breaking down barriers and opening up borders; fintech.
We’ve long been exposed to the cross-border benefits that mobile technology can bring. We can speak with, video chat or message far flung friends and relatives as easily as we can our neighbours. But more recent developments in the world of technology, particularly in fintech, are bringing about a new age of global connectivity. In turn, this is dissolving the traditional demarcations between nations and shining a light on what a borderless world might look like.
As people migrate and move, digital pathways are built between those who leave and those who stay. Global remittances in 2017 valued $613 billion. That’s a vast amount of finance flitting through the ether. Previously, these transactions hit barriers as they moved through the world. Cross-border, international, and cross-continental charges lay in wait. But with the evolution of fintech, which has brought with it digital currency in the form of crypto and global databases in the form of Blockchain, finance has elevated itself above these constraints.
We are on our way to creating a world funded by borderless banking. Granted, there is some way to go before such an approach touches all aspects of the sector, but a grassroots, mobile led revolution is seeing finance accelerate towards a borderless reality that is already benefitting millions of consumers.
Removing charges from remittances will put a huge amount of money back into the hands of those for whom it was intended. According to the World Bank, the global average cost of remitting $200 was 7.1% in the first quarter of 2018. Bearing in mind that the Sustainable Development Goal has set a target of 3%, it demonstrates just how much capital is lost in everyday transactions. Creating routes by which customers can avoid charges will have a direct impact on global growth.
With policy-makers firmly behind initiatives that redress the balance and bring greater equality to financial transactions, fintech companies have a huge opportunity to accelerate this. Borderless banking is the future and we should be putting our weight behind those looking to further this objective. Lack of access to finance is a massive barrier to growth. If we can unlock a future which operates on a system of borderless banking, we can unlock a more prosperous future for all. And that’s something we should all get behind.
Become a shareholder in Nebeus through our equity crowdfunding campaign at: www.CrowdCube.com/Nebeus