What Kind of Technology Do Money Transfer Companies Actually Use?
There is no doubt that technology plays an essential role for the development of businesses in every industry. However, do you really know what hides behind the phrase “we use the most advanced technological solutions”? Are money transfer services truly as revolutionary as they claim to be?
It turns out that they aren’t and it’s essential that you research the matter thoroughly. You need to know exactly how these or any other businesses operate so you don’t fall for empty claims when you decide where to put your funds.
Why You Should Look Underneath the Underneath
Did you know that a recent survey proved that over 40% of AI businesses today have no connection to AI technology at all? Not only do they not develop this kind of technology, they don’t even use any of the existing AI solutions.
Simply put, they only claim to be involved in AI research/development in order to attract investors. And a huge number of them succeeds because the investors of today have very little understanding of actual technology and lack any interest in digging deeper into the businesses they fund. It’s quite shocking to realize that simply adding ‘AI’ to a business’s name helps some people boost their funding overnight.
The AI development sector isn’t the only one where something like this is happening. Over the last year, ICO scams of a similar nature became a huge problem that cost millions of dollars to the people who chose to bet their capital on these ventures.
There is also a similar issue with another buzzword of today’s business world, the ‘big data’. There are dozens of companies that claim to collect and analyze the so-called big data. There are also some big businesses that actually do use technology that can collect this information. However, they do not use it because they don’t know how to do it right. Business Insider and Forbes shed some light on this problem from different angles, and they both come to a similar conclusion. This technology can be great, but it’s unused, while the hype surrounding it is used very well.
The conclusion is that one needs to understand exactly what they are getting into with any kind of business technology. You need to know what you are paying for and whether its true value matches up the claim.
What About the International Money Transfer Technology?
As you should know today, there are quite a few options that can help you transfer funds abroad. Many startups emerge in this industry as the demand for the service grows along with the level of globalization. However, while there is no doubt that these companies are efficient, they are hardly innovative. Today, you have many options for international money transfers. They are all secure, reasonably affordable, and fast. These companies are also more convenient and easy to use than traditional bank transfers.
But it’s important to know that the technology and method of these transfers have existed for a long time. This does not diminish the advantages of these services, but you need to be aware of how they operate to know which the best option to choose is.
Let’s take Transferwise, for example. This startup has a phenomenal success in its niche. There is no arguing that the success is deserved because it does offer people a simple, easy, and above all a cheap way to transfer money internationally. The company even goes as far as to explain how Transferwise works so those who use it know what happens to their money.
Broken down to the basics, these transfers look somewhat like this:
- You send money to Transferwise account in your country.
- An equivalent of the amount is sent to the recipient’s account from the Transferwise account in their country.
As there is no actual crossing of borders involved, there are no extra fees to pay for this. You also don’t need to wait for various authorities to allow the money to pass into their country. Therefore, the operation is extremely fast.
This system is great, cheap, and efficient. However, it’s not innovative. Businesses using the same model have existed for years. The only real big difference that Transferwise has is that it charges very little for the service, thus their transfers are the cheapest.
Does understanding this technology help you? Yes, as now you can use the service with more confidence and be sure in how your money ‘travels’. Is the lack of true innovation a problem? No, because the international transfer system works brilliantly and the service provided meets all relevant requirements. In truth, the only people who should be paying more attention to the innovation level are aspiring investors because if you do want to put your money in this tech, make sure it’s truly a revolutionary development.
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