Money transfer and remittance solutions have evolved over the past few decades. Not only are these services used to send money to friends and family, but every transfer tells its very own story. Up until this point, no company has been actively exploring the opportunity to delve deeper into why people use their service, and for which purposes. Big data, and in the future, smart data, can play a critical role in shaping the future of money transfers.
Why Do People Use Money Transfer Services?
To most people, that may seem like an odd question, as the name hints at the purpose. Consumers and enterprise use these services to transfer money to individuals or other businesses around the world. But the reason as to why these particular services are being used can vary, making it an intriguing concept to investigate further.
Transferring money to anyone else in the world is not a privilege only remittance companies can execute. The average bank is capable of sending bank transfers around the world with little to no friction. That being said, bank transfers take a very long time and can be quite costly. To put this into perspective, the average fee for outgoing international wires is US$42 when using a U.S bank account. These fees may be higher or lower depending on the sender and recipient’s location, though.
But fees are not the only concern, as it is not possible to send a wire transfer to the billions of unbanked people around the globe. Since these individuals have limited or no access to financial services, opening a bank account is not always possible for them. Some of the remittance services let users send money around the world through other payment methods, such as cash or payment cards. Recipients can then pick up the funds through a local remittance office, and walk away with cash in hand.
Sending money to other people around the world is only part of the story, though. Every money transfer,regardless of how it is executed, tells a different story that needs to be explored. By using big data, money transfer companies can gain valuable insights as to why, when, and how these transfers are initiated.
Using Big Data As A Valuable Ally
The term ‘big data” is being thrown around a lot lately, even though most people have no idea what it means exactly. Every action we undertake in life tells a lot about us, even though that information is not always being utilized properly. Sending a money transfer, for example, tells so much more than just the amount of money we send and how we pay for it.
Big data encompasses the whole story, including the sender’s identity, and where the money is transferred to. But there is much more information to discover, including why customers keep using this particular service to transfer money. Furthermore, companies need to look at when people are sending money, whether they use different recipients, and if the transaction amounts are often similar.
That is the primary use case for big data: identifying patterns that would otherwise go by unnoticed. Online service providers can collect a lot of valuable information through big data aggregation. Every browser session has a timestamp, device information, and may give insights as to which location the money transfer is initiated from. Is the sender at home, at work, or in a public place when sending money?
On the surface, not all of this information may seem relevant at first glance. Why would a company invest a lot of money in big data aggregation if their customers keep coming back anyway? Surely they will provide feedback if something needs to be improved? That is not always the case, and establishing a more personal relationship between service provider and customer is vital. That is why we need to look beyond big data, and venture into the world of smart data.
Smart Data Makes Big Data More Sensible And Personal
While big data presents a myriad of information, it is not difficult to get overwhelmed by all of these inputs. Not every business has a need to know at what time a customer accessed their platform, or how long it took them to confirm an action by clicking a link in the sent email. The vast amount of information obtained through big data aggregation needs to be turned into bit-sized points of focus.
This is what smart data does: it enables that personal connection between the consumer and the company they rely on. For the consumer, this is nothing but beneficial, as they can express their own needs and desires by doing things the same way as before. Businesses will use technology to gain a better insight into these trends, and act accordingly.
With smart data, consumers can finally shed the feeling of only being a client number to the company in question. In fact, this technology will empower the user and leverage their position to create a better user experience. Smart data is the right way to go, as it will benefit consumers first and foremost. Companies who truly value their customers have no other option than to embrace smart data technology and establish that deeper connection with their users.