Remittances and Financial Inclusion

Remittances are a key driver for poverty alleviation in low- and middle-income countries; the money sent by migrants back home is a safety net for millions of people in the Global South. Yet, the way remittances are sent by migrants is often costly, unsafe and time-consuming.

On many occasions, sending or receiving remittances is the first and only contact with formal financial services and can thus support the financial inclusion of migrants and forcibly displaced persons. Access to such safe and affordable financial products enables migrants to effectively manage their earnings, to invest and integrate into their host country’s economy.

SDC's Engagement

The SDC works to bring digital remittances and financial services to un- or underserved migrants and forcibly displaced persons, especially migrant women, strengthening their productive role and de­cision-making power.

The SDC aims to promote inclusive digital transfer solutions and to develop remittance-linked financial products, such as saving accounts to invest in ed­ucation, health or income-generating activities.

Certain projects follow a market-system development approach and include work on policy and regulatory reforms; other projects are piloting impact-linked finance products with Fintechs to have a particular focus on migrant women’s financial inclusion.