Using mobile technology can improve remittances to the pacific, GSMA report
NF 21 July: Using mobile technology can improve remittances to the pacific, GSMA report
The GSMA published a report that explores how using mobile technology can improve remittances to the pacific and examines the landscape of cross-border remittances in many Pacific Island Countries (PICs). It further showcases lessons from different regions to elaborate on mobile technology’s potential in promoting accessible and affordable remittances in the Pacific region, especially for the most vulnerable and isolated communities. To this aim, it investigates whether mobile technology can help decrease the costs associated with remittances. According to the report, the PICs should learn from other regions about how to overcome challenges in developing mobile money services which include an enabling regulatory environment, anti-money laundering (AML)/combating the financing of terrorism (CFT), infrastructure, education, and trust among other obstacles. In this regard, the report provides some recommendations to donors and regulators:
- Encourage active engagement between all stakeholders,
- Develop policies and roadmaps for each country,
- Develop an industry standard for up-to-date data,
- Provide an industry platform for traditional and digital RSPs,
- Provide technical assistance to help develop mobile remittances in PICs,
- Develop a funding mechanism for initiatives,
- Encourage remittance service providers (RSPs) to implement relevant risk management frameworks,
- Consider outlawing blanket bans of accounts by-category to overcome de-risking in send-side markets, and
- Build technical capacity, governance, risk management compliance and risk-based approaches.