The rise in remittances is directly proportional to the increase in migration

The general assumption on people displacement globally is that only the underdeveloped and developing countries lose their workforce to the developed nations, in search of greener pastures. Whist this could hold true a few decades ago, migration trends mapped over the last few years have seen fundamental changes in the movement of people.

Though the US still upholds its numero uno stature of being the top destination of choice and therefore the largest source of remittances, new migration countries especially in the Middle East have sprung up. Today, the top five destinations that migrants flock to are the US, Saudi Arabia, Germany, the Russian Federation and the UAE. According to available census data, the World Bank has estimated the stock of international migrants at 247 million in 2013, which is expected to surpass 250 million by the end of 2015.

The rise in remittances is directly proportional to the increase in migration. Developing countries received USD 436 billion in 2014, an increase of 4.4% as compared to 2013. The global remittance industry (including developing and high-income countries) is estimated to reach USD 586 billion in 2015 and USD 636 billion in 2017.

While traditional ways of money transfer – Cash Payouts and Account Credits - continue to dominate this burgeoning industry, Mobile Money Transfer and Payment Cards have established a prominent place. However, this dynamic industry is witnessing the winds of change. Customers are evolving, demands are increasing, value addition is dictating loyalty and a large part of one’s time is being spent online. To keep with the changing pace, brands are innovating to stay ahead of the curve.

XOPO, by Xpress Money, is the first money transfer app to enable international money transfers through social channels and messaging apps. Brands are constantly innovating to stay relevant to their end customers; huge investments in new age technology take up a large chuck of a brand’s budget today. All these efforts are being undertaken for the futuristic growth of the industry at large.

However, there is a big hindrance that exists within the industry - ‘Exclusivity’, which is a major cause of concern for me, personally. In layman terms, this is an agreement that a money transfer operator signs with an eventual service provider (such as retail entities, local money transfer companies, banks, exchange houses etc.) restricting it from working with any other brand in the market.

Our customers are the ones that suffer due to such arrangements as they are left with little or no choice while remitting money. We need to create an environment that is healthy, one that fosters competition and abolishes monopoly. An open remittance architecture that is inclusive, is the need of the hour, for all of us in the industry, globally.

About Sudhesh Giriyan

A seasoned professional in the world of finance, Mr. Sudhesh Giriyan, serves as Chief Operating Officer at Xpress Money. As COO, Sudhesh is responsible for the overall strategy, operations and profitability of Xpress Money in the diverse international markets that it operates in. His repertoire of responsibilities also includes building long term brand equity and improving the value proposition to customers.

Sudhesh holds a Masters Degree in Business Administration from the Indian Institute of Management, Bangalore (IIM-B), and a degree in Mechanical Engineering from Karnataka, India. He has also completed the prestigious Management Development Program from IIM, Bangalore.

About Xpress Money

Xpress Money is a global remittances company with a network of 170,000 locations across the globe. The company allows cutomers to transfer money internationally to relatives or friends. Over the last 16 years, with 100% commitment and respectful handling of our customers hard earned money, Xpress Money has earned its customers seal of approval for its dependability and trustworthiness.