News Reality

Latin American Migrants in Spain: Fintech Innovations are not Enough

by www.huffingtonpost.com
By Fermín Vivanco and Lukas Keller Fermín Vivanco has more than 20 years of experience working on inclusive finance. At the Multilateral Investment Fund, he leads projects that are focused on urban financial solutions and technologies; social entrepreneurship; and savings, including pension savings. When we think of innovations in financial services in 2016, we mostly think of fintech. Many new innovations in financial services come in the form of new apps for our smartphones, which make it easier to carry out financial activities such as splitting the cost of a gift or sending money to a friend. However, these apps are almost exclusively designed for customers in the same country, which raises the question: What are the financial services innovations for the more than 230 million migrants in the world? While there are services like Transferwise or Xoom, there seem to be few innovations that aren't linked to the sending of remittances. A recent study reveals that while 69 percent of migrants from Latin America and the Caribbean in Spain send money to their relatives back home, only 20 percent of these flows are received through deposits in bank accounts. Receiving payments only in cash is costly and limits the opportunities for recipient families to be included in the formal financial system--for example, to save money in a bank account. The use of formal financial products is also limited among Latin American migrants in Spain, according to the study: while 86 percent of Latin American migrants report having a bank account, only 32 percent use it to save. These findings reveal opportunities to design and market new financial products and services tailored to the needs of transnational clients in Spain and Latin America. Some banks are already offering these types of innovations. According to a case study of Bancolombia, one of the largest banks and remittance payers in Colombia, the financial institution offers mortgage loans for the purchase of property in Colombia to Colombian migrants living in the United States and Spain, thereby providing opportunities for the migrants to own assets in their native countries. Another development has been to streamline the process of opening checking and savings accounts in Latin America for both remittance senders and recipients. A study about Banco Familiar in Paraguay has shown that users who receive their remittances in checking and savings accounts tend to make only partial withdrawals of this money, instead of collecting the full amount at once, as they tend to do when the remittances are received directly in cash. Therefore, this innovation encourages remittance recipients to better manage their resources, and gives the bank information about their clients' spending habits and short-term savings capacity. iStock We also know that innovations in products are only part of the strategy to achieve greater financial inclusion of transnational households. Another important element is the establishment of new communications and customer-service channels, which allow financial institutions to raise awareness among migrants and their families about products tailored to their situations, and also make it easier and cheaper for the migrants to access and manage these products from abroad. An example of an innovative migrant-focused communications channel is a Web platform developed by Bancolombia through which foreign-resident clients can communicate with the bank staff, either through a chat service or by requesting that the bank call them from Colombia. Bancolombia has also been working with the consulates of the United States and Spain to reach potential migrant clients and to offer them financial education videos. Fintech still has the potential to improve the financial lives of transnational households. Many migrants make direct payments for goods and services on behalf of their family members in their native countries, and fintech innovations already make these payments much faster and cheaper. But the focus should be on developing and promoting new products in long-term financial services in a region like Latin America, where six in ten people aren't saving for retirement. It is truly a striking fact that nearly two out of every three migrants send money to their parents in Latin America, which means that the remittances are the parents' de facto pension plans. The challenge will be to ensure that remittances don't become their only plan. Lukas Keller Lukas Keller coordinates a Multilateral Investment Fund initiative that promotes the inclusion of remittance recipients in Latin America and the Caribbean in the formal financial system. He has master's degrees in politics and public administration from Rutgers and Konstanz universities. From the Multilateral Investment Fund Trends blog

-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.


Read Full Article On www.huffingtonpost.com
Latest
As we sat basking in the glorious Wembley sunshine yesterday, it felt strangely unfamiliar to be beaming with satisfaction with the game still goalless at half-time.   
Mel Brooks sang a wonderful ditty in his 1983 comedy To Be or Not to Be. In full Hitler garb, he looks sincerely into the camera and says “All I want is peace. Peace. Peace!’ Then comes th
The global economy has started to gain traction, at last. Global economic growth has been unbalanced since the financial crisis, but for the first time in several years all regions of the world econom
Credit unions have moved a step closer to adding mortgage lending to their suite of services.
Drug delivery company United Drug is to invest €40m in upgrading its Dublin headquarters in a move which will significantly expand its capacity in the coming years.
Easter week is traditionally teachers’ unions conference time. It’s somewhat unusual that the various trade union groups representing a particular profession would have a particular focus
He may be one of the most celebrated faces of Cork’s burgeoning IT industry but the architectural passion pumping the blood of Cork entrepreneur DC Cahalane is never far from the surface.
Trish Dromey talks to a Dublin-based fintech firm that is taking the drudgery out of book-keeping.
The expected strengthening of Theresa May’s hand after June’s UK general election may not make Brexit any easier, writes Kyran Fitzgerald.
SEOUL, Korea, Republic Of - Taiwan's "digital minister" Audrey Tang, a computer prodigy and entrepreneur who taught herself programming at age 8, says she's a "civic hacker," who like a locksmith uses
This week on HBO’s “Last Week Tonight,” host John Oliver blasted President Donald Trump’s saber rattling with regards to North Korea, Syria and his congratulatory call to Turki
UN Secretary General Antonio Guterres sought to reassure international Jewish community leaders that he would stand up against any perceptions of anti-Israel bias at the world organization. Guterres
NEW YORK (Reuters) - U.S. stock index futures rose sharply on Sunday on relief that centrist Emmanuel Macron took the first round of voting in the French presidential election, reducing the prospect o
This article originally appeared on the Motley Fool. It remains to be seen what Attorney General Jeff Sessions will or won’t do with regard to enforcing federal marijuana laws in states that hav
A look at the top cues from domestic and international markets that could have a bearing on the D-Street on Monday.
WASHINGTON — The White House on Sunday urged lawmakers to make progress this week on a high-profile issue such as health care or tax reform — or at least to avoid the disruption and embarrassment of a
When it comes to packing accessories for vacation, minimalism is the key with a pop of colour, say experts.
WASHINGTON – Perhaps it was fitting that it poured rain on the March for Science here. The rallies and marches Saturday – with hundreds of thousands of people attending events around the w
JERSEY CITY — Hudson County, New Jersey, New York, Connecticut, FEMA and other entities will conduct a response drill to a nuclear explosion in the New York/New Jersey area, authorities said tod
The National Association of Broadcasters show, which is closed to the public and taking place at the Las Vegas Convention Center and Las Vegas hotels, drew more than 100,000 people last year; official
BEIJING — North Korean authorities have reportedly detained a U.S. citizen, raising the number of Americans known to be detained in North Korea to three and potentially deepening animosity between Was
Bessie Johnson of Tibee to appear on episode of "Handcrafted America."              
SYDNEY (Reuters) - The euro vaulted to five-month peaks in choppy Asian trading on Monday after the market's favored candidate won through the first round of the French election, reducing the risk of
The White House on Sunday announced that it would host a dinner on Thursday for the nine justices of the U.S. Supreme Court, then, according to TheHill.com, abruptly announced that due to scheduling c
In the wake of the current turbulent atmosphere in the Valley, Jammu and Kashmir Chief Minister Mehbooba Mufti will call on Prime Minister Narendra Modi today to discuss the situation and possibly for
Venezuela's President Nicolas Maduro has called for local elections in Venezuela -- but not at the presidential level, which millions in his strife-torn nation are demanding. Maduro in his weekly tel
The sun, dust and pollution can take a toll on your skin. Look for some simple home remedies to take care of skin woes, to soothe and calm the skin every evening after a long day of environmental onsl
Hailing Prime Minister Narendra Modi's Niti Aayog meeting, the Bharatiya Janata Party (BJP) on Monday said that all political parties should work for the welfare of the people without politicising dev
US Secretary of State Rex Tillerson in a phone conversation with Ukrainian President Petro Poroshenko said Moscow's actions in eastern Ukraine remain an obstacle to improved US-Russian ties, the State
Waking up and finally smelling the coffee and realizing the fruitlessness of trying to be something they are not, Savannah State University has announced it is beginning the process to reclassify all
Ms. Camerota, a former anchor, said Mr. Ailes, the former network chief, had made “grossly inappropriate” statements to her and once invited her to a hotel room.
The Supreme Court will today hear the plea seeking a direction for filling up the vacancies in the police forces in six states.Earlier this month, the apex court called on the Home Secretaries of six
The Supreme Court will today hear the plea filed by former Additional Solicitor General (ASG) and senior counsel Indira Jaising in connection with the designation of senior lawyers.Jaising challenged
Former Border Security Force (BSF) jawan Tej Bahadur Yadav, who was dismissed from the BSF over his viral video of poor food quality for jawans, is likely to appeal against his dismissal from service

Recent News

Taiwan's "hacker minister" reshaping digital democracy

SEOUL, Korea, Republic Of - Taiwan's "digital minister" Audrey Tang, a computer prodigy and entrepreneur who taught herself programming at age 8, says she's a "civic hacker," who like a locksmith uses
Read Full Article

What changed for market while you were sleeping? 12 things to know

A look at the top cues from domestic and international markets that could have a bearing on the D-Street on Monday.
Read Full Article

What accessory to pack for vacation

When it comes to packing accessories for vacation, minimalism is the key with a pop of colour, say experts.
Read Full Article

UN chief vows to stand up against anti-Israel bias

UN Secretary General Antonio Guterres sought to reassure international Jewish community leaders that he would stand up against any perceptions of anti-Israel bias at the world organization. Guterres
Read Full Article

'Australia first' fortifies position of country's prime minister

SYDNEY (Reuters) - Australian Prime Minister Malcolm Turnbull has recorded a rise in voter support just days after tightening rules for foreigners seeking work and citizenship under an "Australia firs
Read Full Article

Carrier group heads for Korean waters as Trump calls leaders

SEOUL (Reuters) - South Korea said on Monday it was in talks about holding joint drills with a U.S. aircraft carrier strike group, as U.S. President Donald Trump called the leaders of Japan and China
Read Full Article

The Leftovers: ‘The Leftovers’ Season 3, Episode 2: Swedish Physicists

For all its melancholy, “The Leftovers” rarely gets enough credit for its humor.
Read Full Article

Review: ‘The Antipodes’ and Ambiguous Brainstorming

In this endlessly fascinating work, Annie Baker, the author of “The Flick,” considers the art and necessity of fabulation.
Read Full Article

Billions: ‘Billions’ Season 2, Episode 10: Noncomformity

Contrary to some assumptions, Taylor may turn out to be Axe’s truest protégé and disciple.
Read Full Article

Popular Finance

For Clippers, words of encouragement from injured Blake Griffin

A Clippers team meeting Saturday afternoon at their hotel to discuss strategy and to watch film in preparation for Game 4 of the playoffs began as a consoling session. They all wanted to offer sup
Read Full Article

Thousands explore everything from politics to poetry on final day of L.A. Times Festival of Books

Victor Rios, a sociology professor at UC Santa Barbara, believes that positive change in the criminal justice system is possible only when authority figures stop placing labels on youth from under
Read Full Article

Highly touted quarterback Dorian Thompson-Robinson commits to UCLA

Dorian Thompson-Robinson, one of the nation’s most highly touted high school quarterbacks, announced on Twitter on Sunday evening that he had committed to UCLA, making him the heir apparent to Bru
Read Full Article

NHL playoffs: Senators, Capitals advance with overtime victories

Clarke MacArthur scored a power-play goal with 6:30 gone in the first overtime and the Ottawa Senators beat the Boston Bruins 3-2 on Sunday to win their first-round playoff series in six games. Cr
Read Full Article

Quarterback might not be a top priority in opening round of NFL draft

If anyone questions whether the NFL is a quarterback-driven league, consider that many of the worst teams are looking for one. That said, this year’s crop of quarterback prospects could have those
Read Full Article

Monday's TV highlights: 'Bates Motel' on A&E

SERIES CNN Town Hall: Governor John Kasich Anderson Cooper moderates a town hall with former presidential candidate Gov. John Kasich (R-Ohio). 7 and 11 p.m. CNN The Voice Shania Twain advises th
Read Full Article

GST great illustration of cooperative federalism: PM Modi

"The consensus on GST will go down in history as a great illustration of cooperative federalism. GST reflects the spirit of #39;One nation, One aspiration, One determination#39;," an official statem
Read Full Article

Venkaiah Naidu to take up with Jaitley GST tax rate for films

Naidu, the Information and Broadcasting Minister, stated this while assuring his Ministry#39;s support to issues raised by the South Indian Film Chambers of Commerce (SIFCC) at a meeting with him he
Read Full Article

India#39;s growth to accelerate further due to GST: Arun Jaitley

The minister also said the scrapping of old Rs 500 and Rs 1,000 notes will increase tax compliance and reduce threat of counterfeit currency.
Read Full Article