The spectacle of migration is globally mounting with no distinctive signs of ebbing, painting an impressive landscape of the global remittance industry.
The general assumption on people displacement globally is that only the underdeveloped and developing countries lose their workforce to the developed nations, in search of greener pastures. Whist this could hold true a few decades ago, migration trends mapped over the last few years have seen fundamental changes in the movement of people. Though the United States still upholds its numero uno stature of being the top destination of choice and therefore the largest source of remittances, new migration countries especially in the Middle East have sprung up. Today, the top five destinations that migrants flock to are the US, Saudi Arabia, Germany, the Russian Federation and the United Arab Emirates. According to available census data, the World Bank estimated the stock of international migrants at 247 million in 2013, which is expected to have surpassed 250 million by the end of 2015.
The rise in remittances is directly proportional to the increase in migration. Remittances sent by migrants was $592.9 billion in 2014 and $601.3 billion in 2015. This growth trend is set to continue with the global remittance industry estimated to reach $610 billion in 2016 and $ 635 billion in 2017.
While traditional ways of money transfer – Cash Payouts and Account Credits – continue to dominate this burgeoning industry, Mobile Money Transfer and Payment Cards have established a prominent place. However, this dynamic industry is witnessing the winds of change. Customers are evolving, demands are increasing, value – add is dictating loyalty and a large part of one’s time is being spent online. To keep with the changing pace, brands are innovating to stay ahead of the curve. XOPO, by Xpress Money is one such innovation that could change the game of the remittance industry. It is the first money transfer app to enable international money transfers through social channels and messaging apps.
Brands are constantly innovating to stay relevant to their end customers; huge investments in new- age technology take up a large chuck of a brand’s budget today. All these efforts are being undertaken for the futuristic growth of the industry at large.
As a key stakeholder, I look forward to the newer opportunities that this industry has to offer – one that has no distinctive signs of ebbing.
Written by – Sudhesh Giriyan, COO, Xpress Money