Senegalese send money to Senegal in 2019 was 2,522,205.66 in local currency. Sub-Saharan Africa was one of the quickest remittance regions in 2017 and 2018, but the continent’s money transfer growth slowed in 2019. Remittances to middle and low economies surpassed foreign direct investment (FDI) as the most significant component of incoming money last year, surpassing both ODA and private portfolio balance.
According to World Bank, as the coronavirus leaves swaths of people unemployed worldwide, remittance flows are expected to drop by 20% globally.
This pattern, according to the study, is due in part to the fact that immigrants are a demographic that is especially vulnerable to unemployment during economic downturns. Furthermore, the researchers claim that travel bans and canceled flights have made labor markets incredibly sticky during pandemics.
How Can Online Money Transfers Help To Keep Flow Of Remittance During Covid-19?
Sending money internationally through banks has historically been a time-consuming and costly process, characterised by never-ending chains of intermediaries, manual paperwork, and hidden fees. Individuals and even small-to-mid-sized businesses may now benefit from quicker, cheaper, and value-added foreign money transfer services, thanks to industry innovations in recent years.
Many of these advantages have historically been enjoyed by more giant corporations, banks, and governments due to their direct access to the institutional foreign exchange market, which handles $4.8 trillion in daily transactions. Online money transfers to Senegal during the pandemic have really helped the government and family of expatriates survive amid coronavirus outbreaks and lockdown.
What Is The Impact Of Covid-19 On Digital Money Transfer Business?
The social impact of the lockdown has accelerated change by moving consumers to send money to Senegal online and away from cash.
Traditional cash transactions dropped to zero in some geographies and 30-40% overall for the major players in late March and April. While it is expected that certain people will return to paying cash over the counter, this is not the case for everyone. As a result, the once-in-a-generation boost to digital would have long-term consequences.
Some FinTech foreign money transfer firms have seen tremendous growth over the years. Companies like ACE Money Transfer, which is worth more than a billion dollars and began making money within the first six years of existence, are worth more than a billion dollars. ACE is known for no fee service with a high exchange rate for money transfer to Senegal and 100 plus other receiving countries.