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With the pressure of increasing cost, increased regulations in the financial sector, dynamic customer expectations, and the growing acceptance of the fintechs among the consumers has become a grave matter of concern for banks. If you canât beat them, join them, in the latest strategy adopted by the banks. The banks have been unable to compete and find a solution to the disruption brought about by the fintech in the financial services industry. On the part of the fintech, they need to win the trust of the consumer, even though they have a growing customer base, it is a drop in an ocean when compared to the customer based on the traditional banking sector.
With this, it is sensible for banks and fintech to collaborate, create a win-win situation by leveraging each otherâs strengths. Although banks had an initial resistance towards the fintech, the value of this collaboration cannot be overlooked, as everyone including the consumer is set to benefit from the collaboration.
About Remiit
Remiit is a remittance and payment platform powered by the blockchain technology which connects multiple users and businesses using a trust-based Smart Contract System. Remiit seeks to allow scalability of business in the money-transfer and remittance industry and provide consumers with an economical and transparent process along with value stability vide its 2-tier token system.
Components of Remiit
The Remiit Smart Contract (RSC)
The Remiit Smart Contract assigns customizable smart contracts which can provide businesses with the liberty to create collaborations and partnerships with overseas companies. Further, the RSC allows low-cost and economic remittances overseas and provides an interface for various participants in the process of remittances and payments by leveraging the smart contract organically.
REMIIT Payment Gateway Protocol (RPGP)
The Remiit payment gateway protocol or the RPGP is an interface for payment providers and payment gateways to conduct the transaction through REMIITâs remittance platform. The RPGP enables payment provides and participants in related businesses to explore ventures beyond geographical borders utilizing the linkage of RSC and open new businesses beyond the common remittance services.
The participants involved in the RPGP include payment providers, Banks, fintech providers, business platforms, consumers and corporate entities.
REMI-REMD 2 Tier Token System
Foreign exchange is an essential component of overseas remittances but also is prone to external price fluctuations. The REMI-REMD, REMIIT's 2-tier token system has been designed to resolve the issue of external price fluctuations while enabling the internal business ecosystem.
The complete ecosystem ensures stability for the internal business operations while safeguarding liquidity and expansion of business of remittances along the internal REMD Decentralised Exchange (REX). Also, while enabling overseas remittances for businesses, the REMIIT platform has the prospect of expanding this area of business with the RPGP payment Gateway. REMIIT also enables payment providers and other participants of remittances and payment industries to scout for overseas business by partnering and linking over the RSC.
Collaboration between banks and fintech using REMIIT
With financial institutions collaborating with Fintechs by leveraging the REMIIT ecosystem to attract new segments of consumers while at the same time flabbergasting its existing customer-base with improved upgradation of existing products and services, allowing a higher degree of personalization.
The REMIIT ecosystem plays an essential function in overseas remittance and payments. While the banking sector relied on SWIFT codes, many fintech companies have attempted multiple times to develop various applications and programs to solve the limitations of SWIFT, mainly slow transaction speed and high transaction cost. With REMIIT attempting to create a platform to connect overseas payments and remittances with the blockchain technology.
Fintechs' core strength lies in innovation, agility, cutting-edge technologies whereas the strength of the traditional banking sector lies in its wide-reaching customer base, extensive distribution channels, expertise in regulations and proficiency in funding. With merging innovative offering of fintechs with a large customer base of traditional banks, does not only attract newer customers but also increases loyalty among existing ones and at the same time, have possibilities of exploring a separate related or unrelated business stream for the banks. Fintech can leverage the bank's customer base to achieve economies of scale at low cost. Further, consumers benefit from having the ability to select products and services as per their requirements and customize or personalize their financial services experience.
Conclusion
With the establishment of innovative and secure overseas payment and remittances platform, the REMIIT ecosystem allows banks and fintechs to collaborate and create new opportunities. The blockchain technology serves as a critical component to enable this collaboration to establish an efficient and cost-effective process for banks and fintechs to collaborate, explore and expand business opportunities.
The future will definitely belong to the forward-thinkers, Thanks to Blockchain. Are you planning to be one?
Media Contact:
Name : REMIIT
Official Email Id : contact@remiit.io
Website : https://remiit.io
Linkedin : https://www.linkedin.com/company/wehado/
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.