The Immigrant - The role the Diaspora & Remittance goldmine 31rd of October 2017

Two poll questions to kick off the discussion: Remittances to developing countries are expected to grow at about 3,3% in 2017 to: 244 billion 344 billion 444 billion 544 billion What percentage of GDP does The World Bank attribute to remittance inflows of the top 25 developing countries 3% 5% 7% 10%

The Remittance Goldmine – USD 444 billion to developing countries Remittance Receivers in 2016 (source worldbank). Top 5. India China Philippines Mexico Pakistan

Remittance Flows to Developing Countries larger than Official Development Assistance Remittances – the money that is sent home by migrants help to sustain 800 million people and are a major contributor to development. Some 40 per cent of remittances go to rural areas, where poverty and hunger are concentrated.

Average cost decline but still well above the Sustainable Development Goal (SDG) target of 3 percent, with not corridor >5% The global average decreased from 7,32 % in 2017-Q2 to 7,21% in Q3 (RPW monitor September 2017). Cost for sending USD 200 differ per country: Russia has the lowest cost (2% sending USD 200) and South Africa the highest 16,57%

Cost per Remittance Service Providers type differ Source RPW report Worldbank Sept ‘17 Banks continue to be the costliest RSP type, with an average cost of 11%. Money Transfer Operators are recorded at 6,56%, and Mobile Operators are the cheapest at 3,10% Payment instrument used to fund transaction: most expensive bank account 7,32 total average cost, cheapest mobile money at 3,88%

Machine learning, big data, blockchain technology and the cloud allow start-ups to operate with fundamentally lower costs than industry stalwarts. Incumbent Players, banks, postoffices, Mobile Transfer Operators Emergent players Bitcoin based Money Transfer / Remittances