Anyone working in finance, especially in product development, like myself at Profee, is well aware of the constant need to identify new user categories. Digital nomads are a recent market focus for the financial sector. Let’s examine these individuals’ methods of operation and the assistance that fintechs can provide.
There is currently no single definition that encompasses digital nomadism. A Digital Nomad, on the other hand, is typically a person who works in the IT, marketing, or creative industries while traveling and maintaining a consistent income. These people frequently benefit from geoarbitrage, which entails having a higher income and relocating to areas with cheaper costs of living, such as living in Mexico while a U.S. citizen employed by a U.S. corporation.
While the US is home to more than half of the world’s digital nomads, the trend is also quickly spreading to other regions, most notably Europe. This tendency, which was made possible by the epidemic, is further fueled by the rise in the number of European nations that grant so-called “Digital Nomad Visas,” a particular category of residence visa for highly qualified, high-earning workers with companies or clients overseas.
These European nations include Cyprus, where Profee has his headquarters, as well as Estonia, Norway, Croatia, Portugal, Greece, Hungary, and others. Others are working to complete their separate visa legislation soon, including Spain and Italy. From one country to the next, the conditions and needs are very different. For example, digital nomads receive no tax breaks in Germany or Greece, while they are exempt from taxes in Croatia. A nomad visa can be applied for for free in the Czech Republic, however Norway charges each applicant (including spouses) €600.
Digital nomads make excellent clients for the fintech sector. They require help moving money across borders because they have money. When I consider how an international remittance service could simplify the lives of digital nomads, I put myself in their position to comprehend their routines and requirements.
Payments and money. The first category, and the one that stands out the most to a fintech expert, is financial. Digital nomads require tools like bank accounts, payment cards, and money transfer services in order to receive, manage, and spend money.
This doesn’t seem to be that different from other working people’s arrangements, but some of these tools need to be tailored to the unique requirements of a digital nomad who operates on a global scale. For instance, the majority of nomads have financial commitments to their family members or employers back home. They might have to transfer money to help their ageing parents, pay their property’s bills and taxes, or contribute to a loan. These issues are successfully solved by an international money transfer service, and at Profee, we frequently observe similar use cases.
The financial services provided to digital nomads, however, are a part of a bigger ecosystem. A more simplified customer experience may be ensured by providers with the use of partnerships. Let’s explore what they might be.
Many digital nomads work as independent contractors and locate clients through gig economy networks. Partnering with such platforms could help people manage their money more efficiently.
Many digital nomads would benefit from having access to services anywhere in the world, which Profee-like providers may provide. They might, for instance, require an international insurance plan. Or profit internationally with their loyalty cards. Or, benefit from a free online course on local history while advancing their professional capabilities.
The opportunities are numerous, as we can see. I have no doubt that digital nomadism in general and remote work in particular will continue to gain popularity. Fintech companies should research this group’s demands and how to best meet them with their offerings. This is unquestionably on Profee’s list of professional resolutions for 2023.