In recent years, cross-border payments have become increasingly important for individuals, businesses, and governments alike. However, traditional cross-border payment methods often face a number of challenges, including high fees, slow processing times, and the lack of transparency. To overcome these challenges, the use of automation has been growing rapidly, and it is likely to continue to do so in the future. In this article, we will discuss the current state of automation in cross-border payments, the types of automation that are available, the cost of automation, the potential impact on jobs, and the future of automation in this field.
Table of contents |
|
Why is automation needed for cross-border payments?
Automation is needed for cross-border payments because the current system is often slow, opaque, and expensive. The traditional cross-border payment process involves multiple intermediaries, each taking a fee, which can result in high costs and long processing times. To know more about the other challenges that banks face and possible solutions, read the Fable Fintech international remittance blog on Global Banking Industry Challenges And How To Overcome Them.
Current state of automation in cross-border payments
The current state of automation in cross-border payments is one of rapid growth. With the advent of new technologies, such as blockchain and artificial intelligence, cross-border payment automation has become more efficient, secure, and cost-effective. Automation has also allowed for greater transparency and faster processing times, making cross-border payments more accessible to a wider range of individuals and businesses.
Types of automation in cross-border payments
Cross-border payment automation can be classified into two main categories: centralized and decentralized.
Cost of automation in cross-border payments
The cost of automating cross-border payments can vary widely depending on the type of solution being implemented and the specific needs of the organization. Some factors that can influence the cost of automating cross-border payments include the number of countries involved, the volume of transactions, the complexity of the payment processes, and the need for integration with existing systems.
Impact of automation on jobs
While automation in cross-border payments has the potential to reduce the number of jobs in certain areas, such as those related to manual data entry, it is also likely to create new jobs in areas such as software development and blockchain technology. In the long run, automation is likely to have a net positive impact on employment, as it will allow for greater efficiency and lower costs in the cross-border payment industry.
Which parts of the cross-border payment process can be automated?
Cross-border payments typically involve multiple stages, including transaction initiation, currency conversion, compliance checks, and payment settlement. The parts of the process of cross-border payment process, that can be automated, include:
Which parts of the cross-border payment process will still require human monitoring?
Parts of the cross-border payment process that still require human monitoring include:
Future of automation in cross-border payments
Blockchain: Blockchain technology is a secure, decentralized, and transparent system that allows for the transfer of value without the need for intermediaries. This technology is being used to develop cross-border payment platforms that are faster, cheaper, and more secure than traditional payment methods.
How can automation of cross-border payments benefit banks and financial institutions?
Automation of cross-border payments can bring significant benefits to banks and financial institutions, including:
How can automation of cross-border payments benefit the end consumer & businesses in the long run?
Automation of cross-border payments can bring several benefits to end consumers in the long term, including:
Conclusion
Fable Fintech has been a silent cross-border payments technology partner to some of the biggest global banks in the world for a long time, providing fast, secure, transparent and interoperable international remittance technology solutions for the financial sector and the B2B space. To learn more about the right cross-border remittance solutions for your bank or business, get in touch with a Fable Fintech cross-border payment solutions team now!
To acquire the platform, book a demo with the Fable Fintech cross-border platform experts;