International Remittance

There are roughly 175 million people living in countries other than their own, more than twice as many that were a generation ago. Today 3% of the world’s population are migrants, equating to one in every 35 people.

There has long been a tradition of global emigration, as people from countries have sought to improve themselves abroad, moving to new jobs, or the promise of a better life elsewhere. With the relaxation of trade boundaries and globalization, employment related migration has increased dramatically and shows no signs of slowing. The service sector which includes domestic and health care services, the construction industry and agricultural sectors are the most rapidly developing groups, with migrants focusing on sending the majority of their wages home to support family and loved ones, though most do not have bank accounts and so chose alternative means of money transfer. The mobility of students, cross boarder workers and professional staff transfers also add to the growing need to send monies to and from home. It is believed that over time, remittances may become a macroeconomic factor that will spawn vast effects in the countries of origin and beyond.

Over time, the effect of these people moving to certain locations and encouraging friends and family to do the same, created communities. These communities from specific localities grow up in specific locations in the new country. For example people from, Mexico emigrating to the US gravitate towards Houston, people from Poland gravitate towards Chicago, likewise Indians to traveling to the UK tend towards Birmingham and Nigerians have tended to move to London. The largest global Chinese community, are the Chinese who moved to Canada. Similarly there are various disparate communities – most notably Filipinos, but followed closely by the Thais and a number of Eastern European countries, who all remit funds back to their homelands. As migrant workers this target audience historically suffer from a lack of banking facilities; low paid employees with no credit history.

Global market estimated at US$200 to US$300 billion a year (World Bank)
Major competitors (Western Union etc) charging upwards of €15 / transaction
Average remitter sends €200 7 x per annum