Better banking solutions for better remitting

Statistics show that most migrants in the US belong to the lower strata of the economy having limited means and a family to support. These migrants hope to have a better life in the developed countries. They transfer money to their families by accessing their bank facilities but sometimes the whole exercise of remittance becomes so pricy that many find it difficult to avail the facilities.

 

As we turn the world into a global village and encourage the influx of migrant labourers in the developing countries the need to systematise the technological aspects and enabling the migrants to take full advantage of the facilities available becomes important. It is therefore, important to develop cheaper technologies to cut the costs of account-to-account transactions. In this regard, the financial institutions like small banks, credit unions and micro finance institutions have to play an important role. This would help in transforming the remittance clients into clients of financial services. If the financial institutions in countries from where remittances are made and the ones which receive them work in unison the whole remittance business would benefit.

 

One thing that needs special mention is that most remittance recipients belong to the lower strata of the society. These people have limited financial knowledge and are mostly unaware of the investment opportunities they can have by using their money to invest in various sectors- thereby enabling the economy to become stronger. The financial institutions should focus on this and spread awareness.

 

As the global economy wakes up to a dawn of economic independence it becomes exceedingly important to educate the masses of the assets that need to be build to support the economy. In the next blog I’ll talk more on the potential the remittances have and the ways by which the government and the financial institutions can benefit from the whole remittance business.

 

 

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