Recipients' Interest in Joining the Banking System

From the study conducted by Visa International found on the Payments News website there are listed benefits for remittance recipients to join the banking system. From the article (Thanks to Bankwatch for the source):

"Key findings highlight the recipients' interest in joining the banking system.

• Approximately 50 percent of the remittance volume to the region is distributed through financial institutions, but only 11 percent is received in bank accounts; the remainder is distributed in cash. This shows that despite the participation of financial institutions in the process, recipients are not yet receiving the benefits provided by banking.
• 56 percent of interviewees expressed an interest in establishing some type of formal relationship within the financial system. Similarly, 70 percent showed a favorable attitude toward banks.
• Remittances are not the only source of family income. Nearly half of the beneficiaries are employed part-time or full-time, and for 52 percent of them remittances represent supplemental income. Only one of eight beneficiaries considers remittances the only source of income.
• 15 percent of beneficiaries save or invest the money they receive because remittances increase their income by 50 percent.
• Most frequent uses include purchasing goods, developing a business, savings in foreign or local currency, paying debt, and certain luxuries such as traveling.
• The level of solvency, spending potential, savings and investment are higher among remittance recipients than among people of similar socioeconomic levels who do not receive remittances. Nearly half are economically active people.
• 24 percent of senders interviewed have been living abroad for 10 to 15 years and continue to send remittances periodically, showing the consistency of this business in the long term."

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