AI Enabled Multicloud Strategies for Cross Border Remittance Platform

AI Enabled Multicloud Strategies for Cross Border Remittance Platform

Vaishali Nagpure

Denver, USA

Sunil Kattikar

Denver, USA

Abstract The global remittance industry is a lifeline for millions of people, facilitating the transfer of funds across borders to support families, businesses, and economies. However, traditional remittance platforms are plagued by inefficiencies, including high fees, slow transaction speeds, limited scalability, and vulnerability to fraud. These challenges are compounded by the need to navigate complex regulatory landscapes, mitigate vendor lock-in risks, ensure business continuity, and optimize performance while maintaining near-zero downtime. This paper introduces an AI-enabled multicloud strategy for cross-border remittance platforms, integrating advanced technologies such as hybrid cloud architecture, serverless computing, blockchain technology, and artificial intelligence (AI). By leveraging a hybrid multicloud modelusing Nutanix for on-premises workloads alongside public clouds like AWS, Azure, or Google Cloudthe platform achieves seamless scalability, operational flexibility, and cost-efficiency. The integration of serverless architecture ensures dynamic scaling of backend services, enhancing resilience and availability. Blockchain technology serves as the backbone of the proposed solution, ensuring transparency, traceability, and security through smart contracts and decentralized transaction logging. Meanwhile, AI models augment the platform with fraud detection, real-time currency optimization, and predictive analytics for user behavior. These features collectively enhance user trust, improve operational efficiency, and reduce costs. A critical element of this solution is the integration of frontend user interfaces for seamless customer interaction and a robust commission and settlement model that drives partner network effects. The solution also addresses key concerns such as vendor risk, by adopting technology-agnostic deployments; business resiliency, through disaster recovery mechanisms and compliance with global regulations; and performance optimization, by leveraging containerized workloads and intelligent resource allocation. This paper demonstrates how an AI-enabled multicloud approach can transform cross-border remittance platforms into highly scalable, secure, and efficient systems capable of addressing the evolving demands of the global remittance market while fostering financial inclusion and innovation. The proposed architecture sets a foundation for future developments, including integration with Central Bank Digital Currencies (CBDCs) and enhanced blockchain interoperability.

Keywords hybrid multicloud, AI, blockchain, Nutanix, AWS, GCP, Azure, cross border remittance, money transfer

INTRODUCTION

The global remittance market plays a pivotal role in sustaining economies, especially in developing countries. In 2023, remittances accounted for nearly $800 billion in global financial flows, with developing economies receiving

approximately $540 billion of this amount. For millions of households, cross-border remittances are not merely transactions; they are lifelines providing support for education, healthcare, and essential needs.

Despite their importance, traditional remittance platforms face critical challenges:

• High Transaction Costs: Fees for cross-border transactions average 6%8% of the total amount, making them expensive for end users.
• Latency Issues: Settlement of funds often takes 15 days, creating inconvenience and uncertainty.
• Security and Fraud Risks: Platforms are vulnerable to cyberattacks and fraudulent activities, which undermine user trust.
• Compliance Complexities: Platforms must navigate diverse regulatory frameworks for anti-money laundering (AML) and Know Your Customer (KYC) compliance.
• Vendor Lock-In Risks: Dependence on a single cloud provider hinders flexibility and increases operational risks.

  Emerging technologies such as blockchain, artificial intelligence (AI), and multicloud architecture offer a compelling solution to these challenges. By integrating these technologies, remittance platforms can achieve higher scalability, lower costs, and enhanced security. Blockchain technology ensures transaction transparency and tamper-proof records, while AI provides predictive analytics, fraud detection, and optimization of currency exchanges. The multicloud approach, combining hybrid cloud (e.g., Nutanix) with public clouds (AWS, Azure, GCP), enhances resiliency, agility, and cost efficiency.

  This paper explores a comprehensive solution that incorporates these technologies into a seamless, resilient architecture for cross-border remittance platforms. Key features include:

• AI-driven fraud detection and predictive analytics.
• Blockchain-powered smart contracts and tokenization for efficient settlements.
• Multicloud deployment strategies to mitigate vendor risk and ensure near-zero downtime.
• A dynamic commission and settlement model to foster partner network effects.

By addressing vendor risk, business resiliency, compliance, and technology agnosticism, this approach paves the way for next-generation remittance platforms that are secure, cost- effective, and user-centric.

RELATED WORK

The integration of AI, blockchain, and hybrid cloud technologies is revolutionizing the landscape of cross-border payments and remittances. Recent studies provide valuable insights into leveraging these technologies to address the inherent challenges of traditional financial systems, such as high transaction costs, inefficiencies, and lack of transparency.

1. AI and Blockchain Convergence in Payments

   Lu et al. discussed the convergence of AI and blockchain in optimizing currency exchange rates, emphasizing the use of predictive analytics for minimizing costs in cross-border payments. Their study highlights how distributed ledger technology (DLT) ensures transparency and reduces transactional inefficiencies [1]. Dasarraju explored the integration of blockchain with QR codes and AI to enhance cross-border remittance systems. The work underscores the potential of these technologies to improve transaction scalability and real-time validation [2].

2. Blockchain Applications for Cross-Border Remittances

   Leitãos research on blockchain applications demonstrated how blockchain could reduce costs and improve transaction speed for international remittances. The study delves into how decentralized platforms eliminate intermediaries, ensuring peer-to-peer transparency and efficiency [3]. Petrisin and Johnson explored blockchains ability to provide secure, immutable records for transaction data, highlighting its application in compliant and transparent financial ecosystems. Their work offers insights into the role of blockchain in maintaining regulatory compliance [4].

3. AI-Driven Innovations in Payments

   Inampudi et al. proposed using AI-driven deep learning models to enhance the security and efficiency of international transactions. The study demonstrates how real-time fraud detection algorithms can identify anomalies, ensuring the safety and speed of cross-border remittances [5]. Ouaissa et al examined the synergy between AI, blockchain, and IoT in securing payment infrstructures. Their findings provide a framework for developing robust and intelligent financial systems [6].

4. Hybrid Cloud in Financial Systems

   Gajiwala highlighted the advantages of hybrid cloud adoption in his study. He emphasized how hybrid cloud models enable scalability and regulatory compliance while optimizing workloads across public and private clouds [7].Deb and Choudhury elaborated on how hybrid cloud enhances the integration of machine learning and blockchain technologies for secure financial applications. Their work provides a roadmap for implementing cloud security solutions in remittance systems [8].

5. Emerging Trends and Digital Transformation

Emerging trends in financial technologies were extensively discussed in a case study by Eunchan et al. Their research highlights how South Korea’s financial sector has adopted blockchain and AI to remain competitive globally [9]. The Financial Technologies and DeFi book revisit the digital finance revolution, exploring the role of decentralized finance (DeFi) protocols and blockchain transforming payment systems. It provides a holistic view of the shift toward digital finance, further enhancing remittance platforms [10]. Sabir and Shahid, in their thesis on hybrid cloud management emphasized the critical role of hybrid workload in achieving performance optimization, cost efficiency, and operational continuity, all of which are crucial for remittance platforms [11].

ARCHITECTURE OVERVIEW

The architecture in Fig-1 for the AI-enabled multicloud cross- border remittance platform integrates several advanced technologies to address the key challenges in the remittance industry. Below, we will break down the architecture, starting with a high-level flow diagram, followed by a detailed description of each component, including example code snippets where applicable.

Fig.1 High-Level Architecture Flow

The architecture is based on a hybrid multicloud strategy, using Nutanix for on-premise workloads, public cloud services (AWS, Azure, GCP) for serverless functions and AI services, and blockchain for secure and transparent transactions. Here’s the flow of data and operations across components:

1. User Interface (Frontend)

   The user-facing interface allows customers to initiate transactions, check exchange rates, and manage their accounts. The frontend can be built using React.js as shown in Fig-2 (or any other modern JavaScript framework) and can be deployed globally on AWS Amplify or Azure Static Web Apps for scalability and low latency.

   Fig. 2. React – Transaction Form Component

2. API Gateway

   The API Gateway (e.g., AWS API Gateway) handles incoming requests, routing them to appropriate backend services, and provides rate-limiting and security features. It serves as the communication hub between the frontend and backend components.

   1. Serverless Backend (Remittance Logic)

      Serverless functions (such as AWS Lambda, Azure Functions, or Google Cloud Functions) process the transaction logic as in Fig-3, including remittance processing, fraud detection, exchange rate calculations, and logging.

      • Remittance Processing: The serverless function performs business logic such as checking account balances, initiating transactions, and interacting with the blockchain and payment gateways.

      Fig. 3. Code Example (AWS Lambda – Transaction Logic)

3. Blockchain Integration (Smart Contracts)

   The remittance platform uses blockchain technology to record and settle transactions in a transparent and secure manner. Smart contracts can be deployed on blockchain networks like Ethereum or Hyperledger to automate remittance, ensuring compliance and trust.

   • Smart Contracts: Automate the processing of remittances, including recording sender, receiver, amount, and currency. Fig-4 shows example code. They also facilitate the settlement and commission payment to partners.

   Fig. 4. Solidity – Smart Contract for Remittance

4. AI Integration (Fraud Detection and Predictive Analytics)

   AI models can be integrated for fraud detection, currency exchange rate prediction, and user behavior analysis. AI can flag suspicious transactions, optimize currency exchanges, and offer personalized user experiences. Fig-5 shows example to implement this.

   Fig. 5. AWS SageMaker – AI for Fraud Detection

5. Payment Gateway Integration

   The platform integrates with payment processors such as PayPal, Stripe, and TransferWise to handle the actual fund transfer as shown in Fig-6. These gateways ensure the seamless movement of money across borders, leveraging their APIs.

   Fig. 6. Stripe – Payment Integration

6. Partner Network & Commission Model

   The partner network, including banks, payment processors, and other financial institutions, is critical for facilitating remittance. A commission and settlement model ensures the correct distribution of fees and commissions among platform stakeholders.

7. Key Component Breakdown with Nutanix Integration

   Nutanix provides a single pane of glass for managing workloads across both on-premise and public cloud environments, simplifying operations and reducing management overhead. With Nutanix AHV and Nutanix Clusters, the platform achieves business continuity by replicating critical workloads in case of failure. Nutanixs disaster recovery features ensure that, even in the case of an outage, the platform can resume operation with minimal downtime.

   Nutanix allows the remittance platform to run performance- intensive and compliance-critical workloads on-premise, which might require low-latency access to databases or direct control over sensitive data, such as transaction logs, compliance records, or AI model training data. Nutanix on- premises

   infrastructure will manage core transaction logic, handle AI model training, and execute fraud detection algorithms with high compute demands. It also integrates seamlessly with public cloud services like AWS and Azure for scaling and resource management.

8. Multicloud Workload Distribution

   Nutanix enables the seamless movement of workloads between private and public cloud environments. This hybrid approach allows organizations to leverage Public Cloud (AWS, GCP, Azure). For serverless functions (AWS Lambda, Azure Functions), database services (e.g., Azure SQL, DynamoDB), and AI model inference on AWS SageMaker.

   For workloads with low-latency requirements, such as remittance logic and high-performance computing (HPC), fraud detection, AI model training, and integration with blockchain services. Blockchain services like Ethereum or Hyperledger can be deployed on Nutanixs private cloud for faster, more secure transaction verification and decentralized record keeping. AI models for fraud detection and currency exchange prediction can be trained on Nutanix’s on-premise compute to maintain strict control over sensitive data and improve model accuracy by processing large datasets locally before scaling on the cloud for inference.

9. AI and Blockchain Integration with Nutanix

   Blockchain (Smart Contracts): Smart contracts deployed on Ethereum or Hyperledger blockchains ensure that remittance transactions are secure, transparent, and immutable. Transactions such as fund transfers, commission distribution, and currency exchange are automatically validated, reducing the need for intermediaries.

   Fig. 7. Hyperledger – Blockchain Smart Contract for Remittance

   In this contract, the recordTransaction function in Fig-7 allows remittance transactions to be stored in a blockchain ledger with sender, receiver, and amount data, esuring full transparency. AI and Machine Learning on Nutanix: AI services are used for fraud detection, currency rate prediction, and user behavior analysis. Nutanix enables high-performance AI/ML model training through its integrated Nutanix Prism for resource management.

   For AI model training shown in Fig-8, the Nutanix infrastructure provides GPU-powered nodes for high throughput, low-latency processing, which is especially useful when dealing with large datasets and complex model training tasks (such as deep learning for fraud detection).

   Fig. 8. AI Model Training with TensorFlow on Nutanix

10. Payment and Commission Settlement Model

The integration of payment gateways like Stripe, TransferWise, and PayPal into the Nutanix-powered platform enables efficient handling of cross-border payments. Blockchain ensures seamless, transparent, and immutable transaction recording.

The commission settlement model for partners is integrated into the blockchain, allowing for easy settlement between parties. Nutanix hosts the service infrastructure, ensuring that these services are highly available, secure, and resilient.

CONCLUSION

The integration of AI-enabled multicloud strategies for a cross- border remittance platform, combined with Nutanixs hybrid infrastructure, represents a comprehensive, cutting-edge solution for the rapidly evolving global payments landscape. By leveraging advanced technologies such as blockchain, AI, and serverless computing within a hybrid multicloud environment, the platform ensures scalability, security, low latency, and cost optimizationall while maintaining high resilience and business continuity.

The hybrid multicloud model allows businesses to strike the right balance between on-premise and public cloud resources, ensuring that sensitive workloads requiring high performance, such as core remittance logic, AI model training, and compliance checks, can be securely hosted on Nutanix’s private cloud infrastructure. At the same time, the platform leverages the vast computing power and flexibility of public clouds like

AWS, Azure, and Google Cloud to scale serverless functions, host AI models, and manage complex remittance operations with minimal downtime. This setup minimizes vendor risk, ensures business resiliency, and fosters a high degree of technology agnosticism, allowing businesses to adopt best-in- class tools and services irrespective of the underlying cloud provider.

Nutanixs Hyperconverged Infrastructure (HCI) guarantees high availability, enabling critical workloads to be replicated across cloud environments, thus mitigating the risk of system failures and maximizing uptime. Furthermore, by incorporating disaster recovery solutions, businesses ensure that the remittance platform remains operational even in the face of unforeseen disruptions. Nutanix’s distributed architecture enables seamless failover and load balancing, crucial for delivering a 0% downtime experience for end-users who rely on real-time cross-border payments.

Blockchain technology plays a key role in ensuring the transparency and security of transactions on the platform. By utilizing smart contracts deployed on Ethereum or Hyperledger, remittance transactions, currency exchanges, and commission settlements are securely recorded and stored in an immutable ledger. This eliminates the need for intermediaries, streamlining the transaction process while ensuring that all records are tamper-proof. Moreover, blockchain ensures compliance with regulatory requirements, providing a secure and auditable system for global remittance operations. The AI models deployed across public and private clouds enhance the platforms ability to detect fraudulent transactions, predict currency exchange rates, and optimize user behavior. By utilizing machine learning and deep learning techniques, the system can continuously improve its performance, offering more accurate predictions and insights as the volume of remittance transactions grows. The combination of AI-powered fraud detection with blockchain ensures that all remittance transactions are not only fast and secure but also compliant with the ever-evolving regulatory landscape. Nutanix offers a unique advantage in terms of performance optimization through its ability to run AI and machine learning models on-premise using its GPU-powered nodes, ensuring high throughput and low latency for real-time fraud detection and transaction processing. In addition, Nutanix’s distributed storage and data locality features ensure that critical data, such as transaction logs and AI model training data, can be accessed with minimal delay, boosting the overall platform performance. The partner network model facilitates the collaboration of various financial institutions, remittance agents, and payment processors across the globe. Nutanix ensures that this network is supported with seamless integrations with third-party payment gateways (e.g., Stripe, PayPal, TransferWise), enabling real-time transactions between partners. Furthermore, the commission settlement system built on blockchain allows for transparent and automatic distribution of funds among partners, with all transactions and fees auditable through the blockchain ledger.

Published by : http://www.ijert.org

International Journal of Engineering Research & Technology (IJERT)

ISSN: 2278-0181

Vol. 13 Issue 11, November 2024

By integrating serverless architectures and leveraging multicloud resources, businesses can scale their operations based on demand, ensuring that they only pay for the compute resources they use. This pay-as-you-go approach, combined with the cost savings from utilizing Nutanixs on-premise cloud infrastructure, reduces the overall infrastructure spend while still maintaining the flexibility and performance needed for global remittance operations.

The AI-enabled multicloud cross-border remittance platform offers unprecedented flexibility, allowing businesses to:

• Adapt quickly to changing market dynamics and customer needs.
• Scale easily in response to increased transaction volumes and geographic expansion.
• Leverage the best technologies across public clouds and private infrastructure to improve service delivery and customer experience.

  The integration of blockchain provides an additional layer of security and trust, which is critical in a sector where fraud prevention, regulatory compliance, and transparency are of the utmost importance. Combining these technologies with AI, serverless functions, and Nutanixs hybrid cloud infrastructure ensures that the platform can meet these challenges head-on while offering an efficient and seamless service for users across different regions.

  Looking forward, there are several exciting possibilities for further improving and evolving this cross-border remittance platform:

• As the global payments industry evolves, further integration with emerging technologies such as quantum computing, 5G networks, and advanced cryptography could further enhance the platforms scalability, speed, and security.
• Combining AI with blockchain could unlock new possibilities for predictive compliance, real-time fraud detection, and dynamic smart contract execution based on evolving transaction patterns and risk analysis.
• The incorporation of decentralized finance (DeFi) protocols could revolutionize cross-border remittance by enabling users to send money through decentralized platforms without relying on traditional banks or remittance services.

By positioning itself at the intersection of AI, multicloud, blockchain, and high-performance infrastructure, this platform is not only prepared to meet the demands of todays cross- border remittance market but also to thrive in the future as the global payments ecosystem continues t evolve. In conclusion, the AI-enabled multicloud remittance platform built with Nutanix hybrid cloud infrastructure offers a cutting- edge, secure, and resilient solution that addresses the critical challenges of the cross-border remittance industry. The combination of blockchain, serverless computing, AI-driven fraud detection, and high availability ensures a seamless, secure, and efficient service for users globally, while optimizing costs and ensuring regulatory compliance. This architecture sets the stage for a highly scalable, flexible, and future-proof remittance platform, capable of meeting the growing demands of the global financial ecosystem.

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