Impacts of Financial Technology on Money Transfer

Running head: IMPACTS OF FINANCIAL TECHNOLOGY OVER MONEY TRANSFER
IMPACTS OF FINANCIAL TECHNOLOGY OVER MONEY TRANSFER
Name of the Student
Name of the University
Author Note

IMPACT OF FINANCIAL TECHNOLOGY ON ONLINE MONEY TRANSFER1
Table of Contents
Chapter 1: Introduction..............................................................................................................3
1.1 Introduction......................................................................................................................3
1.2 Background of the study..................................................................................................3
1.3 Research rationale............................................................................................................4
1.3.1 What is the issue?......................................................................................................4
1.3.2 Why is it an issue?.....................................................................................................4
1.3.3 What could the research shed light on?.....................................................................5
1.4 Research aim....................................................................................................................5
1.5 Research objectives..........................................................................................................5
1.6 Research questions...........................................................................................................6
1.7 Personal learning objectives.............................................................................................6
Chapter: 2 Literature review......................................................................................................7
2.1 Concept of financial technology......................................................................................7
2.2 Traditional money transfer vs. Online money transfer....................................................7
2.3 Effectiveness of online money transfer............................................................................8
2.4 Implementation of the technology in the financial institutions........................................9
2.5 The effect of the financial technologies.........................................................................10
2.6 Current statistics of fintech............................................................................................11
2.7 Literature gap.................................................................................................................11
Chapter 3: Research and Methodology....................................................................................11
3.1 Type of investigation......................................................................................................11

IMPACT OF FINANCIAL TECHNOLOGY ON ONLINE MONEY TRANSFER2
3.2 Research approach.........................................................................................................12
3.3 Research framework.......................................................................................................13
3.4 Data collection process..................................................................................................14
3.5 Sampling and sample size..............................................................................................14
3.6 Ethical consideration......................................................................................................15
3.7 Limitations of the research.............................................................................................15
3.8 Time frame.....................................................................................................................15
References................................................................................................................................17
Appendix..................................................................................................................................20
1.0 Gantt chart......................................................................................................................20
2.0 Questionnaires................................................................................................................20

IMPACT OF FINANCIAL TECHNOLOGY ON ONLINE MONEY TRANSFER3
Chapter 1: Introduction
1.1 Introduction
The recent era has experienced a lot of changes in the field of technology and it has
been changing every moment. There are lot of innovations that are taking place as we are
proceeding further. The personal life of every individuals are largely dependent on the
technology that has been designed and developed by the people itself. Technology has
affected people’s lives in several positive as well as negative ways. It has changed the way
the people are communicating, socialising, learning, developing, travelling, purchasing,
selling and most importantly the way they are living (Laudon and Traver 2016). The demand
of the people and their life style have changed so much that now a days the people demand
for real time services and solutions. The financial transaction have faced the same
advancements. Individuals want to make fast and real time transactions siting back at home
without facing the hassles of the traditional methods. The research proposal deals with such
impacts of the financial technology on the online transfer sector.
1.2 Background of the study
The term Fintech refers to the automation and improvement in the ways the financial
services are delivered and catered to the users of financial services (Chishti and Barberis
2016). Fintech is disrupting the world of finance in numerous effective as well as ineffective
ways. Fintech was previously used in the functions of the back office tasks that allowed it to
leverage the tasks of handling of bank personnel accounts, transaction execution, customer
database management and many such tasks. The present market scenario integrates the
concept of Fintech with all kind of functions that the financial institutions perform. The PwC
Global Financial Survey of 2017 clearly shows the percentage of industrial sectors who
believe in the growth of the Fintech companies – E-retailers 43%, ICT and other large tech

IMPACT OF FINANCIAL TECHNOLOGY ON ONLINE MONEY TRANSFER4
companies 50%, Social Media 55%, Start-ups 75%, Financial Infrastructure Companies 41%
and Traditional Financial Institutions 28% (Nicoletti and Weis 2017) (PwC, 2019). Financial
institutions are experiencing a boost in their revenues because of collaborating with fintech
companies. One of the biggest impacts that fintech has wrought is that it has enabled
traditional brick and mortar institutions to expand online through technology and
consequently improve their bottom line figure through overhead cost savings. In line with this
trend, most of the money transfer institutions have shifted from the high street brick and
mortar presence to e-money transfer technology. Consequently, this has helped in cost
reduction of these companies thereafter improving their overall profitability.
1.3 Research rationale
1.3.1 What is the issue?
The financial technology sector has several influences on the money transfer
institutions. Most money transfer institutions that have collaborated with fintech companies
are having an advantage over those who have not collaborated. The e-money transfer system
has facilitated a boost in the turnover of most of the companies (Kashyap and Weber 2016).
The pivotal research issues are:
 What challenges are being faced by those money transfer institutions that
continue to avoid adopting Fintech?
 What role in improving profitability is Fintech playing for the money transfer
institutions who are utilising the opportunity?
1.3.2 Why is it an issue?
To understand the impact of Fintech on online money transfer business, one has to
explore any reluctances and concerns surrounding fintech and the internet. Most financial
institutions avoid adopting online technologies because of the negative impacts associated

IMPACT OF FINANCIAL TECHNOLOGY ON ONLINE MONEY TRANSFER5
with it. This fear of utilising the internet based platforms (and associated risks) for a money
transfer system acts as hindrances for most financial institutions who are not exploiting
Fintech opportunities (Caruana 2016). These organisations are therefore losing their
competitive advantage compared to the online money transfer business who have adopted
Fintech solutions to tap into global markets in a borderless manner. As a knock on effect,
profitability of those brick and mortar organisations are also in decline as they struggle to
maintain profit margins in a highly competitive market.
1.3.3 What could the research shed light on?
The research hopes to examine both the positive and negative effects of using
financial technologies in the money transfer system. As an exploratory piece, this research
will explore the linkage between fintech industry and money transfer services. The challenges
faced by the traditional money transfer institutions are also discussed along with
recommendations on how these challenges can be addressed and mitigated.
1.4 Research aim
The financial technology have both positive and negative impacts on the online
transfer system. The aims of this research study are:
 To understand the impact of the financial technology over online money transfer.
 To understand how the financial technologies are aligning itself with the growing
needs and preferences of the consumers.
1.5 Research objectives
The research objectives of the study are stated as below:
 To critically understand the concept of Financial Technology or the Fintech services.
 To critically understand the concept of traditional and online money transfer.
 To understand the challenges faced by the traditional money transfer institutions.