Xpress Money COO, Mr. Sudhesh Giriyan advocates for an open remittance architecture at the 6th Remittance & MobileMoney Expo in Lagos, Nigeria
Lagos, Nigeria - February, 2016: Taking center stage today, at Africa's leading Mobile Remittance Event, Mr. Sudhesh Giriyan, COO of Xpress Money discusses the dire need for an open remittance industry, globally. Xpress Money, one of the world's most dependable money transfer brands has been championing this cause for the last few years now.
In 2015, approximately $601 billion was transferred by expats to their families residing in their home countries, at an average transfer fee of 7.37% (Q4 2015) . This transfer fee stands high against the '5×5' objective that was initiated in 2009 by the G8 countries, to reduce global remittance costs from 10 percent to 5 percent in 5 years. As of December 2015, over 6 years since the decision, the global average cost of sending remittances has reduced merely by over 2.5 percent.
One of the important reasons for this is 'exclusivity' – a hurdle that is rooted within the remittance industry itself. Typically, brands who enjoy the first mover advantage, get into exclusive agreements with an eventual service provider (such as banks, exchange houses, local money transfer companies, retail entities, etc.) restricting it from working with any other brand in the market. "A healthy business environment is the need of the hour. One that nurtures competition and does not succumb to a monopolistic way of life", says Sudhesh Giriyan, COO Xpress Money.
Xpress Money has been contributing to this cause in different ways; the most noteworthy being its low remittance costs – 2% as compared to the industry standards of 7.37%. The brand is hopeful that the industry will come together to abolish exclusivity, not only for the industry's sake but the customers at large.