April 24, 2018
The world is getting smaller; the boundaries across countries are fading when it comes to business and money. People from all around the world are moving to different countries for work. Developed economies provide great opportunities for migrants to earn money and sustain the livelihood of their families back in the developing nations. In fact, the World Bank attributes 10% of the top 25 developing countries’ GDP to remittance inflows.
The high cost associated with sending remittances through the traditional channels – banks or cash-based MTOs (Money Transfer Operators) – has been one of the biggest challenges in the space of remittance.
Another major challenge has been a lack of transparency in terms of fees charged and FX conversion rates offered by these traditional providers.
Also, the multi-hop model of correspondent banking causes a significant amount of uncertainty and delay ...