Fintech companies to focus on offering scalable, leading-edge solutions that address changing customer needs, finds Frost & Sullivan

KUALA LUMPUR, MALAYSIA - Media OutReach - 14 October 2020 - Digitaltransformation has traditionally been a lengthy, elaborate process. Organizationsmust develop clear business objectives toact and react to market changes before replacing legacy infrastructure withdigital infrastructure. This migration to advanced digital solutions hassuddenly been turbocharged with the current COVID-19 pandemic compelling businesses to keep pace with evolving customer behaviors and preferences.The companies that have survived and even thrived in the current businessenvironment have proactively adopted digitalinnovations and new business models.

Frost &Sullivan's latest thought leadership paper, Antifragility andits Role in Driving a Digital Future in Asia-Pacific, analyzes the critical need for Asia-Pacific companiesto transform digitally and be resilient against future disruptions and dynamicmarkets. It examines how multi-channel digital solutions help digitalremittance companies reduce their dependence on physical infrastructure andbecome more resilient, sustainable, and digital to emerge stronger from the COVID-19 pandemic with robust valuepropositions that can withstand an uncertain future.

To download thecomplimentary whitepaper, please visit: https://bit.ly/3iQIue0

"The remittance market is characterized byhigh fees due to the involvement of intermediaries and high capital outlay,"explained Quah Mei Lee, AssociateDirector, Information Communication and Technology at Frost & Sullivan."The new digital solutions, which can help businesses reduce fees andexpand the market, have already positioned the Asia-Pacific digital remittance market to increaseby 24.8% year-over-year (YoY), despite a decline of 18.8% YoY in globalremittance in 2020. Pre-COVID-19, remittance players such as Western Union that depended heavily onphysical infrastructure experienced lower remittance turnover rates thanplayers like Euronet and Merchantrade, which offer multipledigital channels."

Ramasamy K. Veeran,Founder and Group Managing Director at Merchantrade, noted:"During the lockdown, Merchantrade's eRemitonline remittance service experienced a rapid upward trajectory as transactionsmoved online. Some of the reasons for Merchantrade's outstanding results in2020 are its diversified and synergisticbusinesses, the strength of its partnerships, and the scalability of its solutions.Merchantrade now has a digital remittance solution and a digital platform thatconnects most of its regional partner banks. It also has a growing ecosystem ofrelated digital solutions built through partnerships to help people withintheir joint target segments."

Solution providers like Merchantrade can showcaseantifragility and thrive as a result of disruption by offeringclients across industries leading-edge solutions that meet their specific needs.Companies can excel in the remittance market by:

• Emphasizing partnerships with other market players to build anecosystem that appeals to wider market segments while delivering an enhancedcustomer experience.
• Leveraging technology to develop beneficial and scalable use casesthat can address different needs in the market.
• Adopting long-term, sustainable business models with a 360-degreesperspective that takes potential adversities into account to remain resilient.
• Acknowledging the shift towards technology-first by offeringeffective and efficient digital solutions that are less dependent on physicalinfrastructure.

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