The increase in remittances and money transfers poses an interesting challenge to mobile and banking technologies. We are always looking for the newest innovations in mobile tech for the BSP Fund. Here are some of the stories that caught our attention in remittances and mobile technology this week.
Remittances to Africa carry a high price tag by Tosin Sulaiman on Reuters
As the official remittance flow to Africa has increased to a record $60.4 billion in 2012, there is a growing need to reduce the cost associated with these money transfers. The average cost of a transfer is 11.67 percent of the amount sent, 2.67 percent above the global average of 9 percent. These high fees, in combination with limited access to payout locations, are becoming important issues as remittance volumes continue to grow throughout the continent.
Remittances can transform rural areas: Making every dollar count on The International Fund for Agricultural Development
The Global Forum on Remittances, organized by the International Fund for Agricultural Development and the World Bank determined that it is necessary to maximize the impact of every dollar sent through remittances. There are many ways in which this can be achieved: reducing associated fees or increasing rural access to payout stations. Remittances have proven to be an extremely important tool and a large contributor to national GDP.
Cash Recycling and Liquidity- How Technology can help by Fionan McGrath on GSMA- Mobile for Development
The success of banking structures in the developing world is dependent of the liquidity of the system. This is particularly apparent in remittances, as these transfers are most successful when they can be accessed immediately. One way in which this problem can be resolved is through increased access to kiosks that will allow people to receive and send payments and remittances.