One major lesson learned from the outbreak of the COVID-19 pandemic was the need to strengthen our individual and collective resilience to withstand shocks. While many factors can drive this resilience, diaspora remittances remain a significant driver. Funds received make considerable contributions to households, businesses, and the economy.
It is no wonder that recent policies by the Central Bank of Nigeria (CBN) on diaspora remittance continue to enable inflow. In 2021, the World Bank projected that remittance inflow would grow by 2.5% and with recent data released by CBN, remittances are set to exceed projections. Remittances grew to $14.2 billion in the nine months ending September 2021, up 10% compared to the same period in 2020.
As more Nigerians continue to migrate, we expect diaspora remittances to remain a significant contributor to the economy. Estimates provided in the 2020 World Migration Report placed total international migrants at 281 million, of which 15 million were Nigerians, which is 128 million more than in 1990. Migrants will continue to require digital global payment platforms to send money back home to sustain growth.
WorldRemit’s digital international money transfer service has been in operation since 2009 and serves 150 countries, providing a seamless channel through which migrants can send money back home. The digital platform is fast, easy, and convenient to use, with almost 6 million users trusting it. Here are the top five reasons why:
Digital money transfer platforms
The ability to send money to family and friends back at home via digital channels is becoming increasingly important, primarily driven by COVID-19 stay-at-home measures. This has led to a “new normal” that has seen more people favoring digital platforms. Research and Markets have predicted that the global digital remittance market growth could reach USD 42.46 billion by 2028. Additionally, convenience, ease of use, and speed have been game-changers for digital remittance channels.
WorldRemit is fully digital, eliminating the need for customers to travel long distances only to face long processing times to send money, while also avoiding delays for recipients. It is as simple as owning a laptop or a mobile phone, opening an account on our website or app, and following a few steps for funds to be delivered almost instantly to recipients.
Consumer privacy and data protection
When customers send money, they want to know that their funds will reach recipients without any incident. As a major player in the digital financial services ecosystem, consumer data privacy and protection is of utmost importance at WorldRemit. If customers’ data gets into the wrong groups’ hands, it could lead to significant financial losses.
Hence WorldRemit has taken major steps to ensure that private information in its database stays private. Connections through the website and mobile app are fully encrypted to guard against any third-party interception; customers can transact through our platforms without worry. They also adopt 3D technology for extra safety assurance, meaning that only customers and card issuers can view personal bank information provided. Their compliance and data security team constantly monitor the system to identify potential breaches before they occur.
Extensive reach, agile and regulatory compliant
WorldRemit enables sending from 50 countries to 130 countries worldwide with a significant footprint in Africa, providing support to customers when they choose to move to any country within their coverage area. Their partnerships with various local banks allows them to offer a wide variety of options to our customers when it comes to ways in which they can receive their funds quickly and safely.
They have more than 3,500 cash pick-up locations and a bank transfer payout service fully compliant with CBN USD payout regulation and constantly engage to expand our national reach. Additionally, they remain accountable to relevant local regulatory requirements and are continually engaging the regulators and appropriate stakeholders to position us to continue delivering quality services while respecting required regulations. They are agile, enabling them to respond and quickly adapt to changing environments and directives.
Serving the banked and unbanked
In its 2020 financial services survey report, EFInA confirmed the importance of Digital Financial Service (DFS) to deepen financial inclusion in the country. As a fintech, we are well-positioned to bridge access gaps. We understand that recipients have varying money needs and financial access levels. Hence, they have provided two main methods for customers to send and receive funds: their bank transfer and their cash pick-up services. While still available to their banked recipients who have cash needs, the cash pick-up service ensures that unbanked Nigerians can access the benefits of diaspora remittances.
Fast, easy to use, and transparent
When funds are sent through their digital remittance platform, they are accessible in only a matter of minutes, and in most cases, this happens instantly. Their exchange rates and fees are transparent; customers can see how much they will be charged before authorizing any transfers. Their mobile app and web platform are straightforward to use. After verifying your account and following simple registration steps, you can transfer funds immediately. If customers run into any issues, their 24 hours customer care service is available to solve any queries.