Byline: Imane Charioui, Director of Francophone Africa & Middle East, WorldRemit
Beirut, Lebanon – 2022: Remittance flows to Lebanon reached USD $6.6 billion in 2021, up USD $6.2 billion in 2020, positioning the country in third place in the MENA region in terms of the absolute size of remittance inflows.1 In 2022, remittance flows to low- and middle-income countries (LMICs), such as Lebanon, were expected to increase by 4.2% to reach USD $630 billion.2
With close to 60% of the Lebanese population living below the poverty line, money transfers from the Lebanese diaspora which amount to over $6 billion per annum, are proving to be a crucial means of support to households.3
With widespread efforts to increase COVID-19 vaccination rates and stabilize the economy throughout Lebanon, all eyes are now on what 2023 will bring for millions of families dependent on remittances each year.
With these factors in mind, remittance expert Imane Charioui, Director of Francophone Africa & Middle East at WorldRemit, shares her top market trends for 2022 and beyond.
Remittance growth continues
As preference for digital tools and services to send money overseas increases, digital remittances will continue to grow steadily throughout 2022 and beyond.4
The shift towards digital, deeply accentuated by the pandemic, is predicted to continue, as a growing number of tech-savvy customers opt for affordability and greater convenience.
Safety comes first
It is predicted that money transfer companies will continue to prioritize safety measures above all else.
On the sending side, more companies will integrate additional features that allow them to validate the identification of their customers from phones’ IP addresses to the validation of identity documents.
On the receiving side, WorldRemit supports Lebanon by providing a robust network of 140 cash pick-up locations through its partner, CashPlus for greater convenience and accessibility.5 All connections through our website and mobile app are secure and encrypted. We have also built a sophisticated automated machine learning system for fraud detection.
Speed will continue to be of the essence
Even though some customers are used to waiting hours or even days for a bank wire transfer to arrive at its destination, expectations for the speed of money transfer apps and platforms are the opposite. With new advancements across the digital landscape, users expect money to be sent and received in minutes.
In order to deliver the best and quickest customer experience, companies will continue to invest in enhancing their technologies so data exchange with financial institutions is more seamless, and the flow of remittances is uninterrupted.
At WorldRemit, our technology allows for 95% of transfers to be ready within minutes.6
Money transfer services that work with API technology, which generates the confirmation that the receiving account or wallet is ready to receive the money, will be able to ensure transfers are completed almost in real-time. In addition, increased communication and tracking features will be integrated at global scale for users’ peace of mind.
The simpler the better
Companies will focus on making things as simple as possible, with a strong tendency to decrease the number of steps in each money transfer – from downloading the application and creating the user profile to adding the beneficiary. The trend towards more efficiency and effectiveness will ensure sending money becomes as easy as sending a text.
Digital remittances eliminate the need to go to a fixed payment point, saving users time and money. Living in the uncertainties of a pandemic, senders and receivers are prioritizing safety and looking for a simple, straightforward solution for their transactions.
Technology has gained a more prominent role in people’s lives and money transfers have been no exception. A relatively new industry about ten years ago, digital money transfers and remittances are not only here to stay, they are slowly becoming the method of choice for customers, by proving that they’re just as safe as a bank transfer, and much faster, cheaper, and more convenient, especially during our turbulent time here in Lebanon.
Sources:
- Credit Libanais Economic Research. Lebanon Ranks 3rd Regionally in terms of Remittance Flows in 2021. November 2021
- Knomad. Migration and Development Brief 36. May 2022
- Lebanon Economic Monitor. Lebanon Sinking. Spring 2021.
- The World Bank. Remittance Flows Register Robust 7.3 Percent Growth in 2021. November 2021.
- WorldRemit. WorldRemit launches money transfer service to Lebanon. November 2021.
- WorldRemit. How it Works: Bank Transfer.
About WorldRemit
We’re a leading global payments company and, along with Sendwave, part of Zepz, a group powering two global payments brands.
We disrupted an industry previously dominated by offline legacy players by taking international money transfers online – making them safer, faster and lower-cost. We currently send from 50 countries to recipients in 130 countries, operate in more than 5,000 money transfer corridors worldwide and employ over 1,200 people globally.
On the sending side WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, the company offers a wide range of options including bank deposit, cash collection, mobile airtime top-up and mobile money.
Backed by Accel, TCV and Leapfrog – WorldRemit’s headquarters are in London, United Kingdom with regional offices around the globe.