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People are increasingly moving across borders in search of better opportunities in this era of global connectivity. Individuals moving abroad for work, study and refuge have a significant impact on cultures and economies worldwide as they contribute to their communities. In spite of their contributions, many migrants still struggle to access financial services, which can have a negative impact on their ability to manage their finances, send remittances and achieve financial stability.
Migrant communities often find themselves excluded and occasionally overlooked by host countries due to various factors. Some of these factors can be traced to the absence of a comprehensive framework or structure that facilitates a smooth integration of migrants into the system, limited awareness of available financial services, language barriers, insufficient documentation on the part of migrants, negative stereotypes, regulatory hurdles, a lack of financial products specifically tailored to the needs of migrants and unfamiliarity with the local banking landscape. However, migration fintech solutions like Vesti, have emerged as a beacon of hope, providing innovative ways to bridge the gap and enable financial inclusion for migrant communities. Among the challenges migrants face financially are:
Expensive cross-border remittances, the act of sending money across countries. This could include sending funds or making payments for products. Cross-border remittances tend to be characterized by high costs, low transaction speed and, sometimes, outright declined transactions, making transactions a burden to bear for migrants. Digital wallets enable near-instantaneous cross-border transfers with reduced fees, ensuring that more of the funds reach the recipients.
Lack of access to banking services: Posed by a migrant’s lack of credit history could get them facing barriers when attempting to open bank accounts, obtaining credit cards, and accessing loans. These barriers can prevent a migrant from properly getting integrated into their new country. Fintech solutions like Vesti’s Credit History Service help migrants get integrated by importing their credit history from their former home countries, making settling way easier for migrants.
Currency exchange challenges: Dealing with currency exchange can pose challenges when managing finances across borders. Migrants get to deal with rates and fees, making it important for migrants to have accessible and cost-effective methods of exchanging currencies. Fintech solutions have provided platforms that make it easy to exchange currencies within seconds. Vesti, for example, allows migrants to have access to currencies like the Nigerian naira, United States dollar and Ghanaian cedis, all within the Vesti App. With solutions like the British Pound, Zambian Dollar and Peso wallets underway, migrant transactions will know no bounds.
Social isolation and support networks: Migrants may lack a strong support network in their new country, which can impact their ability to navigate financial challenges. They may have fewer resources to turn to in times of financial need. Pro-tip: Join the Vesti Telegram Group, give yourself an opportunity to get swift answers to your migration questions.
In summary, the access to a wide range of affordable and effective financial services holds the transformative power to ignite a chain reaction of positive impact that resonates not only through the lives of migrants but also reverberates within the economies of host countries. It is imperative for policymakers, stakeholders and migration fintech providers to unite in collaborative efforts aimed at ensuring the inclusivity of these solutions, catering comprehensively to the diverse needs of migrants on a global scale. Through these concerted endeavours, we have the potential to sculpt a more inclusive financial ecosystem that not only empowers migrants but also unlocks the full economic potential of host nations.
•Folarin-Ottun writes from Lagos; he can be reached via [email protected]
