Around one billion people in the world have either sent or received remittances at least once in their lifetime. The story of sending money home is centuries old, and has become increasingly important in the last century with the sharp increase of global mobility.
The GFRID community works on the following three main areas:
Approximately 200 million migrant workers have left home seeking a better future for themselves and their loved ones back home. The remittances they send to over 800 million family members back home enable their families to live better lives and thus ease the need to migrate. Every year, they send home over half a trillion dollars to pay bills, put food on the table, pay for health expenses, but also to save money and invest in a better future. Helping remittance families leverage the development impact of their own resources is vital to reach the Sustainable Development Goals (SDGs) of the UN 2030 Agenda for Sustainable Development.
Remittance service providers (RSPs), the businesses providing remittance services for a fee to migrant workers and their families, encompass a wide array of financial and non-financial organizations. They include banks, mobile network operators (MNOs), money transfer operators (MTOs), multi-channel operators, as well as postal networks, among others. Factors such as reliability, cost, speed, convenience, security, and the owning of a bank account, all direct the migrant worker to prefer one service to another.
Across the world, policies and regulations play a major role in fostering competition and innovation in remittance markets. In particular, regulatory frameworks have been crucial to facilitate the use of technology, mobile phones, digital money, Internet-based mobile and Web applications that will continue to drive down costs, strengthen financial access, and improve the possibility to deliver additional services.