The UN’s International Day of Family Remittances (IDFR) celebrates the 200 million people who send money to friends, family and loved ones in their home country.
International remittances are a crucial lifeline for more than a billion people around the world. In 2019, they overtook foreign direct investment as the largest source of capital flowing into developing countries. They account for 10% of the GDP of the Philippines, and 7% of the GDP of Nigeria.
Family remittances save lives
Half of all remittance payments go to families living in rural areas where poverty and hunger are most common. They bring greater prosperity and security to people throughout the developing world.
Most of the payments are spent on goods and services like food, clothing, electricity, heating and clean drinking water. More than half of all money transfers sent with Azimo are for day-to-day family support. Other popular reasons to send money abroad include:
- Education costs
- Medical bills
- Rent and mortgage payments
That’s why the International Day of Family Remittances was created, to raise awareness of the impact these contributions have on families and communities.
How is the coronavirus pandemic affecting family remittances?
The International Day of Family Remittances 2020 is happening at a particularly important time. The coronavirus crisis has shuttered businesses from London to Lagos, leaving millions of people either earning a limited income or out of work.
The construction, retail and hospitality sectors are some of the worst-affected by the crisis. These sectors are among the biggest employers of migrant labour in the developed world. As a result, the World Bank estimates that international remittances could fall by up to 20% this year.
Thankfully, measures such as the Coronavirus Job Retention Scheme have reduced the negative impact in the UK, and similar schemes exist in the US and Europe. As a result, the decline may not be as dramatic as expected, but any fall is still a hard blow to people whose lives have already become harder.
The positive impact of remittances on the global economy cannot be overstated. Now more than ever, people need faster, cheaper, safer ways to send money abroad. The International Day of Family Remittances 2020 is a great way to highlight the global lifeline that remittances provide at this difficult time.
Family remittances should be faster, cheaper and safer
For decades, banks and money transfer shops have overcharged hard-working people to send money abroad. Some providers charge as much as 10% in fees and hidden costs. In 2020, that’s not acceptable. It’s also why we built Azimo, the money transfer service for hard-working people.
Azimo is up to 90% cheaper than other money transfer providers, with fantastic exchange rates and low, transparent fees. We’re building the most advanced money transfer service in the world, with instant or one-hour transfers to more than 80 countries. Our mission is to use technology to make financial services affordable and available to all.
Your money is always safe with Azimo. We use the latest encryption and anti-fraud technology to keep your transfers secure. Even better, you can use our award-winning apps to send money from your sofa, then track your transfer as it heads to its destination. Email and push notifications keep you updated, every step of the way.
You send money abroad because…
“You send money abroad because you care. Because you’re needed. Because you can make a difference. It’s why you do what you do.”
People send money abroad because it makes a difference. For some it’s to support a family member with a disability. For others, it’s to help victims of abuse in their community. Watch the video below to see some of the ways Azimo customers support their friends, loved ones and communities.