Business

Coming in from the cold

There are 3.5 billion people outside of the formal financial system. Isn’t it time this changed?

25 September 2018

Around $40 billion is sent every year to Sub-Saharan countries, and on average, the people sending the money will be charged in the region of 10%. This is the highest rate in the world, and is way above the ‘target’ of 3% that the World Bank has set. The global average is around 7%.

Why is it so high? Banks, in part, still judge the remittance sector as high-risk, and are ‘de-risking’, or closing the accounts of customers, some of which are remittance providers.

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