Why FinTech projects with cross-border transactions are of interest to investors
FinTech-projects are moving the financial services sector in the direction of “faster, more convenient, cheaper” and have made tangible progress in this. A special place in this sense is occupied by FinTech projects, working with money at the international level. They have an increased interest from investors, since the classical instruments here are extremely inefficient and expensive because of the numerous commissions and conversion of currencies. Thus, according to the World Bank, the average cost of an international money transfer is about 7.5% (for 2015). The most expensive instrument of international transfer are banks, where the average commission value is 11.2%. The organizations dealing with money transfers have an average commission of 6.2%. Territorially the lowest level of commission takes place in South Asia. In the G20 countries, the cost of commissions is still high: from 5% in Saudi Arabia and up to 16.59% in South Africa when sending money and from 4.75% in Mexico to 9.72% in China on receipt. Read more...
