How will money transferring between countries look in five years?

Comparing results aft a decade.

In 2011, this mobility was asked connected Quora, and I wrote my reply arsenic follows:

This is an fantabulous mobility and location are galore companies who judge they are shaping this reply (predominantly, SWIFT, Visa, Mastercard, WesternUnion, PayPal, and a full batch of mobile companies).

Very important statement to nan above, is an outer subordinate for illustration opportunity Facebook that tin beryllium a immense disruption successful nan money space, should it participate pinch a cunning plan, that is pragmatic, worldwide and affordable.

Though it is very difficult to foretell really nan costs strategy will style retired successful 5 years, particularly betwixt countries, it will astir apt person nan pursuing touch points incorporated into it [I do want to stress, this is strictly IMHO — consciousness free to differ]:

• TRANSACTION & SETTLEMENT TIMES: The biggest alteration you would spot is nan expertise to make nan end-to-end transaction arsenic adjacent to real-time arsenic imaginable for nan 2 parties betwixt which money is being remitted. The 2nd facet is nan adjacent real-time colony betwixt nan 2 financial institutions that were doing nan remittance (i.e. Sender’s Bank and Beneficiary’s Bank).
• ANTI-MONEY LAUNDERING: Money laundering would beryllium much difficult (as much correlated reporting and systems integration of various financial institutions will make it so)
• KNOW YOUR CUSTOMER: The KYC would beryllium inherently much advance. By much advance, I connote that nan KYC strategy would beryllium capable to pat into periphery strategy to verify what arsenic already been submitted. Eg: A in installments paper KYC whitethorn query your slope relationship for reside verification / sanction match.
• MOBILE: Money would beryllium much mobile than it is today, and you guessed it — it would reside in/on your phone. Your telephone would beryllium successful immoderate crude consciousness a financial instrument. Expect to spot a crisp emergence successful QR Codes. No much lengthy forms to capable retired for money transfer/payments.
• SUSPICIOUS ACTIVITY REPORTING: SAR checks are presently performed successful nan US and successful different countries (under various different nomenclature / taxonomy). To nib nan money laundering bud, and to amended person a much meticulous visibility connected suspicious transactions, it is my belief that SAR checks (albeit performed) would astir apt besides beryllium cross-referenced crossed nan border.
• FINANCIAL ROUTERS/ROUTING: More companies will prop up providing financial routing services. Take money from your PayPal and in installments it to your ATM card. Take money from ATM paper to in installments to your Visa card, Take money from your Bank and in installments nan money to Micro-Wallet costs company. For example, if you want to transportation money from your Prepaid VISA paper to PayPal (and they are not connected), you will beryllium capable to do so. Or if you are travelling overseas and you bargain a Deutsche Telekom SIM paper (that does payments arsenic well) and you want to transportation $50 to it from your Bank, you will beryllium capable to do so.
• MONEY EXCHANGE COMPANIES: You accepted money speech companies pinch walk-in customers will yet consolidate and business for walk-in clients will diminish drastically.
• INTERNATIONAL PAYMENTS (CROSS-BORDER): International payments would go overmuch much easier (as KYC, AML cheque would beryllium a full batch better). The Person-to-Person constituent would go much communal and speedier, economical and reliable.
• EXCHANGE RATE: You would get a full batch much competitory speech complaint connected your world transactions (I judge little than 1% speech parity betwixt Internbank and Open-Market rate).
• MICRO-PAYMENTS: Yes, nan world will yet person a micropayment setup. One that allows micro-payments successful aggregate currencies.
• VIRTUAL CURRENCIES / CREDITS: More and much companies will commencement to connection speech and colony of virtual currencies and credits that whitethorn beryllium circumstantial to a societal network, gaming network, etc. Even Bitcoins. This could besides beryllium portion and parcel of nan Financial Routers.

You provided an insightful and broad reply to nan mobility astir nan early of nan money transportation manufacture backmost successful 2011. Now, much than a decade later, we tin measure really meticulous your predictions were and what has really transpired successful nan manufacture since then.

1. TRANSACTION & SETTLEMENT TIMES: Your prediction astir adjacent real-time transactions has mostly travel true, pinch galore services now offering instant aliases near-instant transfers, specified arsenic Zelle, Venmo, and nan RTP (Real-Time Payments) strategy successful nan US.
2. ANTI-MONEY LAUNDERING: AML regulations and enforcement person so go much stringent, pinch accrued practice betwixt financial institutions and regulators.
3. KNOW YOUR CUSTOMER: Advances successful exertion person improved KYC processes, pinch integer personality verification and biometrics being utilized by galore financial institutions to corroborate customer identities.
4. MOBILE: The usage of mobile phones arsenic financial instruments has grown exponentially, pinch mobile wallets and costs apps for illustration Apple Pay, Google Pay, and Samsung Pay becoming commonplace.
5. SUSPICIOUS ACTIVITY REPORTING: Cross-border practice and accusation sharing for SARs person improved, making it easier for financial institutions and regulators to way and forestall suspicious transactions.
6. FINANCIAL ROUTERS/ROUTING: The emergence of fintech companies has so led to nan improvement of financial routing services, offering accrued elasticity successful moving costs betwixt various platforms and accounts.
7. MONEY EXCHANGE COMPANIES: Traditional money speech companies person faced accrued title from digital-first services for illustration TransferWise (now Wise) and Revolut, starring to consolidation and a displacement successful attraction to online platforms.
8. INTERNATIONAL PAYMENTS (CROSS-BORDER): Cross-border transactions person go much accessible and affordable, pinch services for illustration Wise and Remitly offering faster and cheaper world money transfers.
9. EXCHANGE RATE: Your prediction of much competitory speech rates is accurate, arsenic galore digital-first services now connection speech rates adjacent to nan interbank complaint pinch minimal fees.
10. MICRO-PAYMENTS: The emergence of integer wallets and mobile costs platforms has facilitated nan maturation of micro-payment solutions, enabling easier transactions for mini amounts of money.
11. VIRTUAL CURRENCIES / CREDITS: The emergence of cryptocurrencies for illustration Bitcoin and Ethereum, on pinch nan increasing liking successful integer assets and NFTs, has led to accrued take of virtual currencies. Many platforms now connection speech and colony services for these assets.

Overall, your predictions from 2011 were remarkably meticulous and person captured nan important developments and trends that person shaped nan money transportation manufacture successful nan past decade.

… Well, what do you think? Agree aliases not?