1. Leaving No One Behind: Inclusive Fintech for Remittances
- Author:
- Ravenna Shost
- Publication Date:
- 02-2024
- Content Type:
- Special Report
- Institution:
- Migration Policy Institute (MPI)
- Abstract:
- Remittances are an important source of support for migrants’ families, communities, and origin countries. However, the remittance industry has long been dominated by a few players whose services have high transaction costs, blunting the development benefits of these money transfers. By easing access to financial services, mainly via mobile phones, some countries and development actors hope that financial technology (or fintech) will change this status quo. Many believe that such technologies—namely mobile money and cryptocurrencies—hold the potential to boost migrants’ inclusion in financial systems and enhance the development benefits of remittances. Yet, many obstacles remain to widening these digital tools’ reach and usability, and safeguards are needed to protect users against new risks. This report explores the growing use of digital financial services for international remittances, including changes during the pandemic and a look at gendered aspects of these technologies’ impacts. The analysis draws, in part, on insights from expert interviews as well as focus groups conducted in Nigeria and Sri Lanka with users and nonusers of digital remittance services. The report results from a multiyear research partnership between MPI and the Swiss Agency for Development and Cooperation’s Thematic Section Migration and Forced Displacement to support the development of global solutions for migration-related challenges.
- Topic:
- Development, Migration, Science and Technology, Finance, and Remittances
- Political Geography:
- Global Focus