Startup spotlight: TransferGo, the remittance company for migrants
As we continue our series of flash interviews on startups to watch in 2020, we speak to Daumantas Dvilinskas, CEO & Co-Founder of TransferGo.
What is TransferGo?
TransferGo is a digital remittance company with a vision to make international money transfer pain-free. Our service is favoured by migrants who live and work abroad but send money home to support their families. By using TransferGo, our customers avoid having to deal with the bureaucracy and fees imposed by banks for processing payments in other countries and currencies.
We’re based in London and operate in over 50 countries around the world. We currently have over one million global customers – growing by more than 2,000 new users each day – and pride ourselves on being the most reliable and fastest remittance company in Europe.
We’ve also we’ve built our own proprietary technology and infrastructure that enables 30-minute money transfers – we’re the only Pan-European money transfer company to guarantee this.
What makes TransferGo stand out?
Transparency and trust. TransferGo represents a new breed of fintech companies that are shaking up the remittance market by ensuring that our customers are at the heart of everything we do. We prioritise the user experience and ensure that we are always transparent with our customers. As a result of this, we’ve got a product that consumers love, and have built a brand they trust – we’re rated excellent on Trustpilot with 96% five-star reviews and an NPS of 83.
Further to this, we strive to remain innovative and find new ways to serve our customer base. We recently launched real-time money transfers to India using Ripple’s blockchain technology, allowing users to send money to family and friends or make international payments immediately. This has been extremely popular with our customers and usage grew by 150% YoY from 2018 to 2019.
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What are some of TransferGo's achievements in 2019?
2019 has been a really exciting year for us, with many major achievements. Most recently we reached the five million transactions milestone, and our userbase continues to grow in the thousands each day. We also recorded remittance flows of over a billion pounds and launched in five new markets this year, making TransferGo available in over 50 countries – all of this has contributed to 100% YoY growth for the company.
What can we expect from TransferGo in 2020?
This year we made our service available in over 50 markets. In 2020 we’ll be expanding further and launching in many more countries around the world. We’re expecting TransferGo to be available in over 140 regions in the first few months of the year. We also plan to double the money flow we achieved in 2019, surpassing £2bn.
About Daumantas Dvilinskas
[image: Daumantas Dvilinskas]
Daumantas Dvilinskas has already founded several companies and is currently heading TransferGo, a high-growth digital money transfer service which was nominated for “Fasted Rising Startup of the Year” at TechCrunch Europa Awards 2018. A well-known advisor in the fintech scene, he was included in the 2017 Forbes 30 under 30 and was also part of the Innovative Finance delegation at the World Economic Forum in Davos in 2016.
For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.
FIVE things fintechs must do to keep investors onboard
New investors flocked to the stock market during the COVID-19 pandemic. Thirty-eight percent of investors said they had never had a brokerage or similar account before opening one in 2020.
Low or no-fee trading options have helped accelerate the trend – nearly half of new investors said they accessed their account primarily through a mobile app. As FinTechs, how do we create the trust needed to keep new investors in the market and create a fruitful customer experience for them?
The financial industry does a disservice to individual investors if we merely offer tools that focus on making money quickly, an approach that usually backfires. Instead, the surge of interest presents an enormous opportunity for those who want to help more consumers use financial technology to educate them on responsible spending, saving, and investing in order to achieve financial wellness current fintech tools have welcomed individual investors in the door.
Now, it’s time to focus on education and improving their experience going forward. There are several ways those of us in fintech can step up to shape the future of retail investing so that it works better for everyone, starting with the following areas.
Equal access to financial wellness education
Financial health should be available to everyone — but today, not everyone has the educational resources to achieve it. One study shows that only 3.9% of students from low-income schools were required to take a personal finance class. What they aren’t learning in school or from family members, fintech companies can provide on their platforms.
The companies should move from solely offering financial services to a more responsible model of education, advice, and prescriptive choices to help consumers develop better habits and make wiser financial decisions. Not only can they empower consumers and bridge historical wealth divides, but they can also stimulate growth by opening up new consumer segments.
Just as we’ve come to expect that our fitness routines are tailored to our individual bodies, we’re also ready for finance tools that go beyond one-size-fits-all solutions. But only six percent of financial institutions say they’re using the kind of technology that allows them to deliver a deeply personalized experience. Fintech tools need to reflect that financial success looks different for each of us.
For one consumer, it may mean providing guidance on how to pay off student loans early; for another, it may mean prescriptive actions that enable them to stick to a budget for the first time; for a third, it could look like prioritizing environmental, social and governance (ESG) investments, so that her portfolio aligns with her political beliefs.
Now, we are seeing financial technology beginning to meet the demands of personalized finance in a substantial and meaningful way.
The rise of AI-Powered Advice
Big-picture advice and predictive guidance used to be a feature of high-end financial advisory firms — a perk only available to those who could afford it. But thanks to rapid advancements in data analytics and artificial intelligence (AI), that kind of holistic advice is now more accessible than ever. AI-driven robo-advisors can parse many different streams of financial information, delivering customized answers to key questions: Is it time to buy a home, or is it smarter to keep renting? Can I afford to take out another student loan?
Intelligent connectivity powered by AI can anticipate consumers’ needs and next steps, making proactive suggestions that guide them along the path to financial wellbeing. Fintech companies can also help consumers identify when their financial picture becomes too complex for a robo-advisor, and help them find a human financial advisor to meet their needs.
Focus on financial mental health
New investors are quickly finding that the market can be overwhelming. That’s not surprising, financial anxiety is common and studies show that financial stress can have an impact on mental health for some.
It’s not enough for fintech companies to give retail investors access; they also must provide the guidance and support that help consumers manage their financial well-being. Educational tools can ensure that consumers are well informed about their options.
Predictive analytics can anticipate consumers’ questions, serving them key information and insights before they ask. Features that emphasize a comprehensive notion of financial well-being, rather than short-term wins and losses, can also help ensure that consumers are keeping their eyes on the bigger picture.
Gamification for good
The surge of gamification apps has done an impressive job making investing as engaging as playing a video game or joining a social media platform.
Much of the current use of gamification emphasizes short-term thinking, but there’s also an opportunity to help consumers think more broadly about their overall financial picture. One example is peer benchmarking, a feature that enables help consumers to see how their financial habits compare to those of friends and fellow consumers.
Gamification can also be used to incentivize making smaller, smarter choices — for example, rewarding saving over making an impulse buy.
The future of fintech is about more than just broadening access to the markets. It’s about making sure more individuals have access to the tools that can help improve their financial well-being—in the ways that suit their own circumstances and needs. The potential to act within their own set of individual priorities, with their long-term financial wellness in mind is much more empowering to a consumer than simply relying on short-term, high-risk investments.