Remittances are a hot industry to focus on for companies and startups in the block chain tech and finTech sectors.
Previously in 2013, a press release published by the World Bank stated that global remittances represented a $550 billion dollars industry, with India and China receiving $131 billion (see graph below).
The same article stated that by year 2016 we could expect a record number in remittances, registering a flow of $707 billion.
This year (2015), the Goldman Sach’s Investment Research Report part III – “The Socialization of Finance” featured that:
– According to the World Bank, there is an estimated roughly $550bn sent internationally in 2014. We estimate the fees generated by banks and other money transfer platforms to be roughly $30bn, or roughly 6% of the total principal amount. –
We expect block chain companies to be able to offer lower fees and faster transfer with solutions that are easily accessible to everybody. These must not rely entirely on having a smart phone or fast internet connectivity since that equals (in most cases) to a relatively high entry cost for many people in the developing countries.