I recently joined my friends at Anthemis – the guys investing in Fidor, Simple and Moven – for a chat.
They gave me a nice leaflet on the trends in remittances which I thought worth sharing with y’all, as it’s a great read with many useful charts and stats.
The first chart shows the growth of remittances …
… with the World Bank estimating that remittances are growing at 11% CAGR from $234 billion in 2004 to $534 billion in 2012, growing to $685 billion by 2015.
That does not take account of the informal remittances market however, such as Hawala, which some estimate would add a further 40% of funds value to this marketplace.
It’s not surprising that the market is so effervescent when over 200 million people work in a country they weren’t born in, and over 40 million immigrants in the USA alone in 2010, accounting for 13% of the population (up from 11% in 2000).
It is also a market that is seeing big changes thanks to mobile money transfer, even though costs are still high with an average fee of 9% or higher to make a transfer. This is down to the domination of the two largest players Western Union and MoneyGram, who own 20% of the global market.
Western Union’s revenues for 2011 were $5.5 billion, driven by 510,000 agent locations. MoneyGram’s revenues were $1.2 billion in 2011, with 284,000 agent locations. Ria, a subsidiary of Euronet, came third with $244.7 million revenues in 2010 and 107,000 agents.
America is the top remittance sending country, with $52 billion of outbound remittances in 2011. India is the top receiving country, with $70 billion received in 2012 (estimate) although Tajikistan is the top receiver based upon percentage of GDP. 47% of Tajikistan’s GDP is based upon remittances received.
There’s a load more in there, with two great infographics in the centrefold, but it’s notable that this is all taking place as HSBC and Barclays close down their money transfer network support due to money laundering (I said they would do this three years ago).
A further drive into Hawala and informal transfers, or an opportunity for a new mobile money transfer system?
Anyways, here are the two infographics from Anthemis (doubleclick image to enlarge).
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