The positioning of transferwise in the swiss international remittance market

: recommendations for the business development of the millennial generation based on competitive environment and target group expectations

Abstract

Background – Recently, the banking industry entered a period of disruption, triggered by FinTech startups focusing on specific niche markets.
Objectives – The goal of this dissertation is to advise TransferWise: Recommendations are given regarding key currency routes and main customer targets within the Swiss population, in light of the current competition, expectations and needs of identified potential segments and actual remittance flows. Methodology – In order to do this , market research is conducted, expert and target group interviews are held, and mystery calls are performed with main competitors.
Findings – MoneyGram is the leading competitor in terms of speed, Xendpay and Currency Fair based on price, and traditional banks PostFinance, ZKB, Cantonal Banks and UBS based
on client preferences. Main segments that TransferWise should target are immigrants, crossborder workers, international students and Swiss students abroad. Of these, most relevant are especially digital-affine individuals wit regularly occurring transfer needs from non-Euro countries. The core needs differ among the segments, but price and trust are most significant.
Dominant remittance sending and receiving countries are Italy, France, Spain and Germany. Implications – Academically, this thesis bridges traditional literature with innovative FinTech business models as basis for future research. Practically, the research offers firsthand insights into Swiss international remittance user groups, their preferred service providers and needs. It can support startups like TransferWise in their business activities, but also
established money transfer organizations and banks.

Date of Award	23 Feb 2017
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Rute Xavier (Supervisor)