‘Remittance’- the most specific and universally acknowledged known link between a migrant and development. The hard-earned money or goods that migrants send back to their friends and family in their origin countries.
Remittances have and always will be a savior for many countries around the globe. The micro-level impacts (individual and households) and macro-level impacts (country-level) are both countless.
These remittances play a vital role in households’ well-being and, on a greater level, countries’ development. They are a great source of revenue for them throughout the years.
During disasters or emergencies, remittances are a vital income source for people whose other livelihood forms get destroyed by conflict or natural disaster.
For years the traditional ways of sending money back home have ruled. According to the World Bank, In 2019, banks were declared the most expensive remittance channel, charging a high fee of 11 percent. Next in the order were post offices charging a fee of up to 7 percent.
Sending remittance is not free of cost, and sometimes it includes a premium where these national post offices have partnerships with money transfer operators.
Listed are the top ten recipient countries of remittances (in billions of US dollars):
According to the World Bank, among countries, the top remittance recipients were:
- India, with $79 billion,
- China, with $67 billion,
- Mexico, with $36 billion,
- The Philippines, with $34 billion,
- Egypt with $29 billion,
- Nigeria, with $24.3 billion,
- Pakistan, with $21 billion,
According to Dawn, remittances from Pakistani workers employed abroad exceeded $2 billion for the eighth straight month in January at $2.3 billion, up 19 percent from a year earlier.
Sharing the figures on Twitter, Prime Minister Imran Khan thanked overseas Pakistanis.
“This is a record for our country, and I thank our overseas Pakistanis,” he said.
- Bangladesh, with $15.4 billion,
- Vietnam, with $15.9 billion,
- Ukraine with $ 14.3 billion.
The globalization of financial markets and the development of information technology have moved funds across the globe more accessible; however, one thing common in all these countries, remitting billions of dollars back home, is that they suffer from misuse of money daily.
The top most critical problems recognized are:
There is no transparency in the traditional system; unverified and questionable vendors back the main reason migrants have started to find safe, prompt, and autonomous ways to send in their hard-earned money.
Complications that usually occur while dealing with vendors back home are:
1. Misuse of funds,
2. Money/goods not being delivered timely,
3. Inflated bills & invoices,
4. Ghosting by Business Vendors back home.
Due to these existing factors, migrants lose their time and money along with losing trust in traditional remittance. And so many have chosen to switch to different reliable models that do the job well. Here is where InstaKin comes in, connecting migrant communities with already operational, verified, and trusted vendors back home through a quick, accurate, and compliant financial platform.
Thanks to InstaKin, migrants now have:
1. Transparency on costs back home,
2. Zero dependencies on busy relatives of friends,
3. No leakages as all transactions are invoiced, and contracts get issued via InstaKin,
4. And most importantly, peace of mind as migrants do not have to run around.
Finding the right vendor to do the job can be a big challenge, especially when one is so far away from home. Due to busy friends and family and a lack of access to trustworthy and safe vendors, migrants have no choice but to work with any service provider they can find, resulting in an unsatisfactory delivery or no delivery at all.
Migrants have slowly realized that the traditional remittance model has become a black hole where there is no transparency on money spending.
Direct payments to business vendors imply that migrants only pay for the actual cost of the particular service that they use. They do not have to worry about facing any delays, misuse, or misplacement of funds.
According to a survey from CENFRI, 71% of migrants would prefer to make payments directly to a business vendor back home instead of sending money to a cousin or uncle and asking them to manage the transaction on their behalf.
Contact InstaKin – Work directly with verified business vendors in the home country.
The minute a query lands on the website, our expert Kin will reach out instantly and get the tasks managed as per preference. Customers will make direct payments with the help of the app for any services they have availed. Migrant communities living abroad need not fret as our team of experts at InstaKin will help them manage all their matters back at homeland, be it anything; InstaKin welcomes all to avail of our services. Post a request or become our partner today.