- Posted On: June 11, 2020
Mobility of European citizens as an opportunity for new financial tools
As EU employment rates rise again, so does the number of citizens migrate within the EU. In 2019, 17.1 million citizens of the EU lived in Countries other than their homeland, with 45% of expats and students living in Germany and the UK. Free movement of workers is a fundamental principle of the EU, and the Europe2020 strategy is in line to meet its target of 75% employment by next year. It is a time for developing infrastructure that supports the transition and wellbeing of valuable expats, students and manual workers alike. Eurostat 2019 says the number of students travelling to other countries within Europe for either a number of semesters, or to complete their academic qualifications, is also increasing steadily.
Movement of expats, students and other workers is driven by a combination of social, economic and political strands. As this movement continues to grow, so will the markets that provide service platforms to facilitate the transition of these newcomers. They contribute to capital development and progress across industries. Movement like this within the EU fuels the economy.
Circulation in Europe
So, what does an Expat, a manual worker or a student need and how can we help them transition in their new Country? They need inclusivity, opportunity and an environment where they can grow and develop their financial wellbeing and security. Their pensions may be fragmented. They often want to send money home to their families on a regular basis. They may want to settle down and get a mortgage. Students may need to receive grants and transfers from their home country. These requests were once complicated and swamped in red tape and bureaucracy, but financial exclusion and lack of access to good quality financial solutions is becoming a thing of the past.
Although EU directives are still weak, it has become considerably easier for professionals, workers and students, to migrate within Europe, opening up opportunities for themselves and for service platforms that can provide easy and efficient solutions. As newcomers settle and build on their quality of life, they now have more freedom and control over their finances. We are now seeing some Member states making a concerted effort to promote financial inclusivity. With that, comes an increase of organizations tuning in to the gap in the market. Despite the fast-paced climate in financial services, this area is still largely unexplored.
From opening a basic bank account, to saving and seeking credit, newcomers no longer need to face the tedious and stressful procedures that take time and effort. Technical and financial solutions are in a new and exciting time, and newcomers are less vulnerable and less likely to be pushed into bad credit agreements.
Revolutionary Financial Technologies
As the market opens, financial services have the ability to create reliable credit profiles. Creating fairer credit scoring systems, and trustworthy financial services that don’t cost an arm and a leg, expats are more likely to get on the credit ladder to buy their first home or meet the criteria of government of savings schemes. Whatever the financial needs are, they are now free to choose reliable and efficient platforms, allowing them control of their own finances. What’s more, they can take and use their transactions history along with them around Europe. And if they choose to return to their home country, their transactions history can still follow them.
These recent changes are great for everyone. The individual is now empowered to use their own data to make financial decisions and take actions. These new types of financial services can help them keep their credit scoring on track and help with any historical debt. By securely making use of their own bank accounts, they can have a realistic authentic depiction of their financial behavior, within minutes. Banking in general, is changing. Traditional financial institutions are streamlining processes and services in order to work with new products. We’re seeing banks working alongside this new technology making services cheaper and easier to access.
The Fintech sector is in a great position. New software, stronger platforms and a considerable focus on the customer experience means that pan-European services have huge potential not only in credit scoring, but day to day banking on the go, balance checking and quick transfers, all at a low cost.
Finclude goes beyond traditional credit scoring, providing a comprehensive view of a customer’s creditworthiness, affordability and financial behavior.
Our score is not based on past credit events but on your financial & transactional behavior. Our score follows you across borders.
Join the revolution! Add your details to our waiting list and be one of the first to enjoy the merits of financial wellbeing!