The digital remittance market is growing – fast! A recent Yahoo Finance report* highlighted that this sector is predicted to continue growing rapidly over the next decade. Globally worth $22.1 billion in 2023, it is should be worth $44.4 billion by 2028. By 2032 it will be worth nearly $80 billion. Put simply, there’s an increasing reliance on digital platforms by a globally dispersed population sending funds abroad.
Market Dynamics – and a Vulnerability
This shift to digital remittances is not simply a change in how money travels. It reflects deeper socio-economic trends. People are moving across borders more than ever for work, education, and better lives. Behind them lie financial dependencies and, with the ubiquity of smartphones, a greater need for digital services to send money home.
Convenience comes with its share of challenges. As digital remittance services grow, they become attractive targets for organized crime. Consequently, these platforms are particularly susceptible to being used for money laundering and terrorism financing. Criminals can use regular customers as participants in their schemes, sometimes unwittingly, to hijack small, regular-looking transactions to mask illegal activities.
Behavior Checks are Critical
In this setting, the role of behavior checks is paramount. Beyond monitoring large transactions, it’s essential to scrutinize multiple medium or small-sized transfers as these may disguise criminal acts. It’s here that the best compliance services become indispensable in the fight against financial crime.
Compli provides exactly the services designed to meet this need. They offer an holistic approach to compliance across the financial services sector, including for digital remittance services. Compli integrates rigorous AML and CTF, as you’d expect with any comprehensive compliance service. It also provides continuous behaviour checks which it analyses for unusual events or patterns. It identifies anomalous identities and behaviors, which it flags for action. Thus, seemingly innocuous but suspicious transactions are checked, as well as larger ones, all scrutinized efficiently 24/7.
Customizable and Scalable for the Remittance Sector
Recognizing the growth and needs of the remittance market, Compli is both customizable and scalable. Its inherent flexibility allows it to adapt to the specific requirements of different providers, ensuring that it aligns perfectly with their operational scale and scope.
Compli’s automation offers reliability and efficiency and these support increased profitability. It’s also crucial in handling the volume and velocity of transactions typical in the remittance sector, making the system not only thorough but also time and cost-efficient.
Enhancing Security and Compliance, and the future
The integration of Compli into remittance services is not just about adhering to regulations; it’s about proactively enhancing the security and compliance of the sector. With its sophisticated monitoring and analysis capabilities, Compli plays a crucial role in protecting the integrity of remittance transactions, ensuring they remain a safe, reliable means of financial support for millions worldwide.
As the remittance market continues to expand, integrating sophisticated monitoring systems like Compli becomes imperative. By employing such tools, remittance service providers can ensure robust compliance, contributing to a safer, more secure financial environment for their customers and themselves
You can explore more about Compli and its capabilities in this introductory video.
*Digital Remittance Market likely to reach USD 77.7 billion by 2032, rising at a CAGR of 15.0% | Market.us – Yahoo Finance, December 5, 2023.