Embracing Technological Advancements in the Future of Remittances

By Hasan Fardan Al Fardan

Since its establishment in 1971 – which coincided with the founding of the United Arab Emirates (UAE) – Al Fardan Exchange has remained committed to keeping up with the rapid development of the country by embracing change and championing progress.

With the UAE having one of the world’s highest percentages of expatriates, Al Fardan Exchange has emerged as a trusted financial partner to foreign nationals by providing some of the region’s best remittance services, including direct bank transfers, cash pickups, and credit-to-mobile-wallet schemes, that enable expats to securely send funds back to their home countries.

Throughout the years, Al Fardan Exchange has seen the UAE’s growing expat population drive the need for safe and fast remittances, with a surge in 2023 seeing the Indian, Pakistani, and Filipino communities account for over 50 per cent of the country’s outward remittances. According to the World Bank, remittance flows to low and middle-income countries increased to an estimated 3.8 per cent in 2023, with transfers reaching US$ 669 billion, as Gulf Cooperation Council (GCC) countries continue supporting migrants’ ability to send money home. In 2024, remittance flows are projected to recover to a 2.1% gain based on an expected turnaround in flows to Egypt.

As the financial landscape has continued to evolve, Al Fardan Exchange has also identified the rise of new technologies in the sector which transform the ways in which we communicate, interact with money, and define consumers’ expectations.

The dynamic intersection of technology and finance, FinTech, has served as a platform for Al Fardan Exchange to pioneer transformation across remittance services in the UAE.  The nation’s remarkable economic growth has further catalysed the flow of money, with companies leveraging technology to streamline operations and provide customers with a seamless experience.

The goal is clear: disruptive forces, such as innovative business models and emerging tech solutions, need to be met with lower fees and greater accessibility if organisations are to remain ahead of the curve.

Banking technological services, including the likes of blockchain technology, are increasingly enabling direct peer-to-peer transfers on a global scale via web-based exchanges. Mobile money services are also gaining popularity, providing underbanked populations with fast and affordable international remittance options through mobile phones and agent networks.

Payment gateways, another technological turning point that delivers low-cost and quick cross-border money transfers, puts traditional remittance providers to the test. Al Fardan Exchange embraces this by enabling small businesses and consumers to accept international payments online in real time, promoting e-commerce remittances as an essential component of a healthy FinTech ecosystem.

The future of remittance is dependent on innovations that prioritise speed, cost-efficiency, and convenience, ultimately driving financial inclusion across markets. To remain competitive, both established players and start-ups have a responsibility to incorporate these technologies into their operations.

Artificial Intelligence (AI) and data analytics will prove especially useful to businesses, with both solutions offering optimised routes, exchange rates, and fees by accounting for real-time factors like currency fluctuations and transaction costs. The rise of AI, in particular, will see machine learning bolster compliance screening and predictive models to identify the quickest and most cost-effective transfer options – an approach highly valued for its speed and reliability.

Al Fardan Exchange acknowledges the importance of these features by integrating digital verification via UAE Pass and KYC through our AlfaPay app to enhance processing and strengthen security.

The ongoing wave of innovation taking place across the local remittance industry brings with it new opportunities for organisations to meet international financial needs in significant ways. With its cutting-edge digital money transfer solutions, industry expertise, and leading capabilities, Al Fardan Exchange empowers businesses to provide the next generation of remittance services, ensuring that its clients remain at the forefront of the ever-changing FinTech frontier.