As foreign remittance inflow continues to grow in leaps and bounds, hitting $21 billion at the end of last year, Nigerian consumers are calling for even greater innovation from money transfer providers to support their remittance needs.
According to Western Union’s inaugural Global Money Transfer Index (GMTI), eighty-nine per cent of consumers who receive remittances in Nigeria want services integrated into a super app, with which they can manage all personal finance needs, while 79 per cent want platforms with local-language capabilities.
The GMTI asked consumers how, when and why they use international money transfer capabilities today, as well as their expectations for tomorrow. The results bolster Western Union’s ‘Evolve 25’ strategy to combine high-value, accessible retail and digital financial services for all.
According to Western Union’s regional Vice President, Africa, Mohamed Touhami El Ouazzani, the Central Bank’s efforts in developing the necessary infrastructure has boosted connectivity and inclusivity and as a result, consumers have become attuned to the opportunities and flexibility innovations can bring.
He added that they expect this to continue, underscored by a strong emphasis on speed, convenience and reliability.
The Index also reflects Nigeria’s fast-paced economy, as the country’s government continues to implement its National Digital Economy Policy and Strategy. Evidence of its influence may be why 61 per cent of consumers who receive money prefer using digital methods from start-to-end. It also showed that speed of transfer is key and ranks as the most important factor considered by consumers when deciding which provider to select for collecting transfers. When asked about the future, the balance starts to shift, with more receivers (53 per cent) desiring choice between receiving money in-person or digitally.
Nigeria’s inbound remittance flows places it as the biggest receiving market in Africa, and ninth largest globally. At present, 63 per cent of consumers in the country receive money at least once a month.
As consumers further adapt to higher global cost of living, 85 percent expect to receive more money within the next year just as senders also agree they will need to transfer more in the 12 months ahead (82% percent). However, they also face a cost of living dichotomy as three-quarters (75 percent) say global economic conditions means they cannot transfer as much as they did previously.
“Economic headwinds have impacted all consumers globally, and remittances play an integral role in ensuring people and their communities can keep moving forward, leveraging opportunities. Now more than ever, it is incumbent on us as money transfer providers to be agile, supporting consumers as their requirements evolve in order to manage their daily financial needs,” Ouazzani concluded.
