Challenges Faced by WorldRemit in the International Market

This report discusses the challenges faced by WorldRemit in the international market, including cyber security, inflation, money laundering, and more. It also provides solutions to overcome these challenges, such as blockchain and funding.

WorldRemit

Table of Contents
MAIN BODY............................................................................................................................................3
1. Strategic Issues..............................................................................................................................3
2. Challenges faced by WorldRemit...................................................................................................4
3. Solution to overcome from the declining market of WordRemit...................................................6
4. Implementation of WorldRemit.....................................................................................................6
CONCLUSION.........................................................................................................................................7
RECOMMENDATIONS............................................................................................................................7
REFERENCES..........................................................................................................................................8

MAIN BODY
Structure of WorldRemit
WorldRemit is an online payment tool or method that provides individuals to transfer
money in the international market with one click. It saves the time and efficiency of the
people and helps them to safely and securely save money without facing any issues such as
theft. The money can be moved from anywhere, anyplace, and anytime through the PC and
tablets as well as personal mobile phones in a few seconds, unlike traditional cash move
administration where the people need to go to qualified or skilled agents. The fee charges
amount is low and gives a good exchange rate (Alakija., 2021). The process of WorldRemit
includes SMS, email, and reference number which are generated after transferring the money
to the other person or firm. By using this, the individual can collect money from several
banks including FCMB, Union Bank, Access Bank, United Bank of Africa, GT Bank, first
banks, etc.
1. Strategic Issues
The most common and major issues which are faced by the people through WorldRemit
are as follows:Some social issues are faced by WorldRemit for a few years which affected its
overall turnover and standard in the international market.
Cyber crime is a dangerous attack a company or organisation may face. There are many
examples where the cyber attack has brought huge losses to the institution or individuals due
to the information hack. Today environment is filled with technological equipment and every
part of data is now save on computers. Cyber attacks may prove dangerous for the
WorldRemit. Hackers breach the security of the digital transaction and create difficulties in
for the consumers as well as for the company. A cyber attacks may lead firm towards
financial losses and it is a serious concern for the company. It has to pursue for more security
measure to avoid such uncertainties.
 Threats of New entry: Entry of new competitor means more chance of risk
development of existing one. Newly entered firm generally bring out numerous type
of innovation and technology as well as security which attract more customers. To
prevent the risk of this type of risk company adopt block chain tool which helps
running company to prevent the information. EU wanted to being a master of
Blockchain technology, becoming an originator in blockchain and home to vital place,
organization and application. It is the type of technology that offers individual and
company who may not trust or believe to each other for collectively agree on and
permanent recording of data without an authority of third party. By building the trust
in information in several ways are not possible but blockchain has ability to change
how to transfer the information by maintaining security and bring out online
transaction. The support of European nation towards blockchain are strong in terms of
following policies and laws. This technology majorly focus on maintaining

environment sustainability, information security, digital or online examination,
cybersecurity and interoperability.
 Differentiated offering that satisfies customers’ needs: It is consider as a
challenging situation for example if the competitor of the organization offers fast and
more safe product and services then him. Customer preference are more valuable for
consuming more outcomes because customers are key components of business they
have a power to success or fail the organization. There are 5 different company
similar services provide like WorldRemit one of the company name is Remitly.
Business and objective of both the companies are similar because they both deals in
online transaction. But as compare to WorldRemit, Remitly processing are more safer
and quicker. The transaction are not stuck at the middle of the payment as well as
people can receive or send payment without facing any type of problem. Due to this
the market rate and position of the company WorldRemit are decreasing gradually
which effected the company health and monetary condition.
 Losing Russia remittance: The conflict in Ukraine is fuelling a flood in cash moves
to the country as traveler laborers and outcasts escaping the contention scramble to
send monetary help back to their families (Blakstad and Allen., 2018). It is the time
where the Worldremit operating losses are occurred and hits the company at higher.
Complete settlements to Asia are expected to drop between $31.4 billion (standard
situation) and $54.3 billion (assuming the worst) in 2020, comparable to 11.5% also,
19.8% of pattern settlements, individually.
2. Challenges faced by WorldRemit
 Cyber security: It is most important and vital practice in this modern time because
several types of software and application are developed that hits the company position
badly like leaking the important data. WorldRemit ensures safety and security for its
customers at the time of transferring money from one bank to another. It is done by
giving strict verification facilities through SMS and email. It only contains those
persons who are genuine and deter criminals. But presently worldRemit faced
problem cyber attack issue form its competitor company and fintech. Competitor
company of worldRemit attack the company through Denial of service attack, it a type
of cyber attack that make traffic in reaching the network properly. Due to this, the
customer of this organization faced several types of problem like transaction failed. In
other hand, the fintech leak all the company information.
 Inflation: Inflation is generated when price of the specific commodity and services
are increases rapidly and hits the economy of the company as well as business firm. In
context of the WorldRemit, the rate of inflation is occurred in the country Ukraine at
16.4% in April 2022 as compared to 2.7% in the year 2020 (Taghizadeh-Hesary,
Yoshino and Otsuka., 2021). The reason behind this inflation is war between Russia
and Ukraine due to some reasons. It heated people’s homes more than the money
during the war.

 Money laundering and sanction compliance: The app or software of WorldRemit
support and secure its customers or clients through money laundering and sanction
compliance. Money laundering included the loss of money and theft of money from
the defaulters and frauds. This UK software helps the customer to detect criminal
practices or purchasing illegal commodities and cover-up scams. On the other hand,
Sanction Complains help the clients to protect from fraud from companies, industries,
and individual. Recently, WorldRemit face monet laundering situation in financial
transaction scheme which target to conceal the identity, destination of illicitly-
obtained money and source. Few people are using worldremit for changing its black
money to white.
 Global digital currency: The WorldRemit is a type of software that provides digital
money to the individual bank account by ensuring safety and privacy. The global. The
Global Digital Currency supports will give an open and unbiased stage for trade, data
sharing and investigation of the utilizations of Central Bank Digital Currency and
another type of advanced cash execution (Brambilla., 2020). Approximately, 90
countries adopt and developed this technology method for innovation and economic
development. WorldRemit are also faces numerous issues from this global digital
currency that are scalability, issue of Cybersecurity, changes in prices and regulation.
Due to this infrasture and storage problem are solved because they do not provide any
kind of tangible wallet.
 Cashless society: WorldRemit creates a society where individuals are not carrying the
money in its hand which indicates society is shifting their interest and practices from
traditional to the modern way. The people used mobile phones, tablets, laptops, and
master cards for buying goods or services or transferring the money from one bank to
another. This process is known as a cashless transaction or cashless society. Cashless
society is a major issue for the company Worldremit in order to provide more security
for the cashless payments. Cashless society increase the data which is very difficult
for the company to manage. In today era, cyber threats from integrated technology-
furled thieves and rogue actors actors in nation are growing rapidly. It found that new
ways of cyber attacks on digital systems resulting in a information breach and
confidential data identity theft and cashless solutions such as debit card, credit cards
may be unprotected. Worldremit has to provide more secured environment to its
customers or cashless society in order to perform online transaction.
 Labour demand change: Labour demand can affect the operations of Worldremit. It
can effect with the various factors such as growth in their wages and output. Labour
demand directly affect the cost of production when workers want to increase their
payouts or company want to increase their work hours without increasing their wages
which may increase the conflicts among the company and workers. During the period
of the pandemic, the whole country's economy changed and decline quickly because
the power of global challenge is higher at that time. The demands of the laborers are
also changed because an industry tries to appoint people who are powerful and skilled
and also have knowledge of digital software. WorldRemit also appoints talented

candidate which has full knowledge of online banking. It affects the existing
employees and increase the unemployment in the economy.
 Skill Shortage: Skill shortage is a major problem for the company. Skill shortage can
bring pressure on the company. There are various problem faced by company when
shortage of labour increases such as:
when company do have enough workers to perform operation at the time of
competition can lead their existing worker towards pressure.
Low skilled workers decrease the production levels and profitability of the firm.
They may increase the cost of production because they need motivation and trainings
to perform specific tasks. Organising training program may increase the knowledge of
the employees but they can also increase the company expenses too.
3. Solution to overcome from the declining market of WordRemit
 Block chain: It is the way which helps the business firms to record the information
digitally along with some designs and the understanding way such as by ordering the
data type, information block as well as protecting and linking through cryptographic
evidence. In context of WorldRemit, blockchain is helpful to make the transaction
quickly without facing any problem. It provide P2P services to customers where
middlemen are not presented.
 Funding: It is the most common way to overcome from financial crisis and to
develop the business standard in terms of monetary. It collects from various type of
funding sources such as angle funding. WorldRemit also uses this funding method for
business growth, development, expansion and innovation. It basically helps in
financing, project and program.
4. Implementation of WorldRemit
Solution Objective Input Process Output/ Outcome
Solution: 1 Protection from
cyber attack
Appoint people
who have
knowledge and
experience of
cyber security.
Open vacancies
for the position of
Cyber security or
cyber specialist
This practice
provide security to
the customer and
business
organization.
Solution: 2 Software
Improvement
Develop more
secure and
suitable
technology
Collects idea from
general peoples
and company
team member
about innovation
process
It helps business
to attract more
customers and
profits.

CONCLUSION
Form the above report it can be concluded that, WorldRemit is advanced or online
specialist co-op programming that permits the populace to move the cash on the global stage
starting with one individual then onto the next through the source work area, PC, and
versatile. It is an exceptionally quick and secure component and covers 130 countries and
north of 70 centuries. It was created in the year 2010 and its central command is situated in
London, United Kingdom. The pioneer and CEO of this worldwide help is Ismail Ahmed. As
of now, 1200 people are utilized all around the world because of the WorldRemit, working in
excess of 5000 money move halls toward the year's end 2021, Company rebrand its name as
Zepz. The affecting elements which are looked by WorldRemit in the previous year by
entering the new contest in the commercial center and worldwide test of pandemic are
explained in the above report. The report also covers every one of the focuses which are
affected the organization that as essential issues, dangers of rivalry, changes in client needs,
needs, and sorts of difficulties that are looked by the firm, for example, network protection,
illegal tax avoidance, expansion, and so on, and clear up the way for rout the issue with the
assistance of block chain and subsidizing as well as give execution thought like who is
includes in this training and how much monetary emergency happens. Besides, it gives the
proposal of the entire report in a most reasonable and justifiable manner
RECOMMENDATIONS
The above discussion is recommended that the structure of WorldRemit which is UK
based company that deals in transferring the money in the international market. After the
effect of the Covid-19 pandemic, WorldRemit faces many global challenges and economic
challenges which impacted the company's growth and development. It is also impacted by the
Ukraine and Russia wars which creates many problems such as inflation. WorldRemit created
a cashless society that decreases the problem of fraud, theft, and money laundering. To
overcome from all these issues, it is important for the company to innovate and improve their
software. After doing this practice business organization is more helpful in acquiring large
profit and customer. Protection of data are also important for the company to make their data
safe.

REFERENCES
Books and Journals
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second-generation members of the Nigerian diaspora in Peckham,‘Little Lagos’,
London. Journal of Arab & Muslim Media Research, 14(2), pp.237-259.
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Italy. In Human Trafficking Finances (pp. 27-54). Springer, Cham.
Baidoo, S.A., 2019. Regulatory Effects on Traditional Financial Systems Versus Blockchain
and Emerging Financial Systems (Doctoral dissertation, Walden University).
Blakstad, S. and Allen, R., 2018. FinTech Revolution. Cham, Switzerland: Springer, 121,
p.132.
Brambilla, E., 2020. The Era of Digitalization: Is M&A Between Banks and Fintech Firms
the Winning Strategy for Bank Profitability? (Doctoral dissertation, The University
of North Carolina at Charlotte).
Mfegue, K.F.O., 2018. La diaspora camerounaise (re) pensée à l’aune du développement
socioéconomique. Une diplomatie au service de l'émergence du Cameroun, p.183.
Rahim, N.F., Bakri, M.H. and Yahaya, S.N., 2019. Fintech and Shariah principles in smart
contracts. In FinTech as a disruptive technology for financial institutions (pp. 207-
220). IGI Global.
Taghizadeh-Hesary, F., Yoshino, N. and Otsuka, M., 2021. Role of international remittances
as an economic instrument for poverty eradication in line with Sustainable
Development Goals. Sustainability and Environmental Decision Making, pp.441-
466.
Yuan, L., 2019. Economy: pressure-induced change, active guidance. In The Chinese Dream
and Zhejiang’s Practice—General Report Volume (pp. 39-83). Springer, Singapore.