Cost of bank remittances higher than through digital channels – World Bank Report

The World Bank's Migration and Development Brief says data from the World Bank’s Remittance Prices Worldwide database reveal that costs tend to be higher when remittances are sent through banks than through digital channels or through money transmitters offering cash-to-cash services.

It also noted that the cost of sending $200 across international borders continued to be too high, averaging 6.4 percent of the amount transferred in the first quarter of 2021.

This, it believes, is more than double the Sustainable Development Goal target of 3 percent by 2030.

“It is most expensive to send money to Sub-Saharan Africa (8 percent) and lowest in South Asia (4.6 percent),” it said.

However, the lead author of the Brief and head of the Global Knowledge Partnership on Migration and Development, KNOMAD, Dilip Ratha, has suggested keeping remittances flowing, primarily through digital channels, providing access to bank accounts for migrants and remittance service providers remains a crucial requirement.

Policy responses also must continue to be inclusive of migrants, especially in the areas of access to vaccines and protection from underpayment,” said Dilip Ratha, lead author of the Brief and head of KNOMAD.

By: Kanto Okanta