Digital Inclusion for Remittances are Long Overdue, Irrespective of COVID

By Elena Novokreshchenova, Vice President of International, Remitly

In this digital era, made more evident by COVID, it can be easy to forget that a digital solution may not exist for our every need. From connecting with our loved ones on video calls to working with teams remotely, we have all experienced how technology empowers communications. However, digital accessibility is not universally applied, especially in the financial sector.

Traditional infrastructure, a widening skills gap and challenges of customers adopting digital services has meant that digital transformation has been slow, especially with regards to remittances. In current times, when immigrants still need to send money to their families abroad, having to queue at a bricks and mortar shop or newsagent is not an attractive or viable solution. Even though lockdown is now easing, the more than 270 million migrants globally, which is more than the population of American adults – shouldn’t have to queue up in 2020.

In 2018, Migrants in the UK sent over £8bn home according to the BBC, and are traditionally underserved by financial services. They are unfortunately not a priority, even for many disruptive start-ups.

Expanding access to online digital payments solutions must now become a priority for those within the financial industry. Partially because our new ways of working and living require it, but equally because inclusion should not be a second thought or add-on to any financial service.

The rise of the Digital Remittances Market 

The last couple of months have put a strain on many people’s livelihoods and businesses, and this is even more true for immigrants who are often the backbone of our support services, especially in cities and urban areas. It is difficult to understand the long term and lasting impact of COVID, not only on immigrants but also on their families. The World Bank has predicted that global remittances will, in fact, fall this year by about 20 percent as immigrants’ salaries are hit and the effects of lockdown are felt.

Digital access will eventually replace physical money sending

While lockdown is easing across the country, many people still fear a second wave of COVID and are avoiding handling cash in any physical form. In fact, according to a report by Link, which runs an ATM network in the UK, the use of cash is dropping in the country, driven by COVID, online banking and card and contactless payments. This is why online money transfer services are so important in the ‘new normal’ way of living, working and sending money.

Not only will digital money transfer services help immigrants to send money home, companies such as ourselves, Remitly, are available 24/7 and via an app, meaning that customers can use these services whenever and wherever they need them. During the current COVID crisis, we’ve seen an increase in the adoption of our service across the 70+ countries we operate in, as customers and their recipients adopt new methods of sending and receiving money abroad.

Yet, businesses need to go further and faster when it comes to digital access. Immigrants also deserve the best customer experience alongside fair and transparent pricing. Applications can be made easier and more convenient to use, and must include a smooth set up process with self-service components that gives the customer the freedom to select and use the right services for them, quickly.

Companies should follow the foundational design principle of always having the customer, and how they will use the app in mind. Listening to your customers, whether via customer feedback sessions or focus groups are now more important than ever. The rightly delivered solution, at the right time will help to build long-term trusted relationships with this underserved community.

Navigating a digital post-COVID world with society in mind

Digital access is no longer a nice to have but a necessity. When facing a global pandemic society needs to come together and that means inclusion not exclusion. The UK has over 9.5m immigrants – it’s time that they also receive high quality financial services that are built and tailored to their needs. To help them stay connected with the community at home and their families who may be far from them.