The pandemic affected many parts of the economy — remittance included. This article focuses on the limitations imposed on remittance and practical ways to overcome them, especially across developing regions that rely on migrant workers and cross‑border flows.
Regional pressures and declines
East Asia & Pacific remittance growth slowed into 2019 and faced a projected decline in 2020, driven in part by weaker inflows from the US. South Asia saw pressure from the Covid‑19 downturn and oil price declines, affecting outflows from GCC and Malaysia.
Provider challenges
Surveys (IAMTN/UNCDF) indicate most providers experienced notable volume changes. With volumes down and fixed costs (rent, staffing, operations) steady, margins compressed — especially during lockdowns and repatriations.
Ways to overcome limitations
- Adopt FinTech solutions and promote digital channels for senders and receivers.
- Partner with public institutions to raise awareness and improve e‑KYC access.
- Ensure platforms are user‑friendly and efficient to grow volumes.
- Create conducive, non‑discriminatory remittance policies and regulatory frameworks.
- Expand formal cross‑border channels; consider concessional credit and fee relief for providers.
Lotus Remit’s approach
Lotus Remit embraces digital solutions with transparent, competitive pricing — operating both online and through physical operations — to keep pace with technology and support clients effectively.