A remittance is a transfer of money by a foreign worker to his or her home country. Historically, migrant workers the world over have sent earnings to their families in their country of origin. Migrants comprise farm and other laborers as well as professionals. In 2005, migrant worker remittances totaled approximately USD 232 billion globally – three times official development aide of USD 78.6 billion dollars. It has been noted that formal formal remittances constitute the second largest source of external funding for developing countries behind foreign direct investment. Conventional agents, such as Western Union or Money Gram, have been used to sent remittances. However, the Internet, online and mobile phone money transfers have grown significantly in recent years.
Increasing the Impact of Remittances – Financial Inclusion of Migrant Workers and their Families back home. (2012). Financial inclusion isnow recognized as a crucila factor in the development of low income countries.
Briefing Note 113: Beyond Remittances – How To Expand Your Mobile Money Product Suite. Remittance is the most common entry point for mobile money systems as it not only addresses significant pain points for customers but also builds trust in the system. However,…..
Leveraging Remittances with Microfinance. Findings of an Asia-Pacific study to investigate the potential for remittance-linked financial services.
Entry of MFIs into the Remittance Market: Opportunities and Challenges. An explanation of remittances and the depth of the remittance market.
Moving from remittances to microfinance.The study indicates that the remittance transfer process is a promising means to expand financial access to the poor, particularly in rural areas with no access to the larger commercial banks. And, diasporas are increasingly a source of funding for microfinance institutions.
Remittances and Microfinance Networks. In most developing countries, remittances exceed foreign direct investment (FDI) inflows. Remittances serve migrants’ families while creating economic opportunities.