International remittances between consumers is a large and growing market. New branchless models are contributing to the growth, but not overwhelmingly.
According to a new report by CGAP (the Consultative Group to Assist the Poor),remittances to developing countries will top $515 billion this year. Since 2004, these remittance flows have been growing at a compound annual growth rate of 12%, CGAP reports.
"The sheer scale of international remittance flows speaks to the potential for development impact," CCAP wrote. And for greater financial inclusion.
The report - International Remittances and Branchless Banking: Emerging Models - was released last week. It is the third in a series examining new and creative models for facilitating affordable, accessible transparent remittance services. The bottom line: innovations abound (think mobile wallets), leading to increasing deployments,but transaction volumes and revenues need to grow.
"Are international remittances through branchless banking helping enable access to a range of financial services for the unbanked?" the report asks. Its conclusion:"not yet."