In a year, the remittance industry in Nepal handles a staggering amount of US$6.9 billion. The first Digital Chalfal (meaning ‘talk’ in Nepali) of 2019 organized by UNCDF in Kathmandu, discussed on how the fast-growing digital economy in Nepal can create new opportunities with the remittances flowing into the country. Stakeholders from the digital finance and the remittance industry exchanged views on how these new opportunities would contribute to the SDGs via new financial innovations in Nepal.

According to Mr. Anil Sharma from the Nepal Banker’s Association, “the Prime Minister has recently challenged a Task Force to come up with innovative solutions to ensure that Nepal can create smart solutions around the remittance market so that the country can invest in its’ future”.

UNCDF is partnering with Laxmi Bank to develop remittance-linked use-cases for Nepalese migrants using digital innovations. On the supply-side, this investment is exploring the use of:

Innovative technologies to facilitate information exchange between stakeholders in remittance corridors to address common information asymmetry problems.

Streamline financial processes and create valuable data-driven insights that will drive product design and deliver suitable, customer-centric financial products and services using alternate delivery channels.

Financial literacy efforts that address customer perceptions of the formal sector, product relevance and product usage.

At the Digital Chalfal, UNCDF presented insights from a research conducted in Banepa, Panchkal and Jankapur regions. The research included a survey of 181 families receiving remittances in these 3 regions. The findings revealed homogeneity in typical beneficiary and remitter profiles and conspicuous variation in aspects of gender, savings and overall credit behaviour across regions. The discussions provided the opportunity to share field-level evidence and identify solutions to key problems and trends revealed by the survey.

“The time is ripe to relook at remittances through the new opportunities created by the enormous digital footprint of remittance. We need to ask how remittance can help improve lives in ways that transform the economy at the local level”, said Ms. Anita Mahat, USAID.

The Digital Chalfal series is part of an ongoing effort by UNCDF in Nepal to engage the development community, regulators and the private sector in a collaborative learning experience. With many more such gatherings on issues pivotal to UNCDF’s mandate, UNCDF will share its expertise and learn from partners on the use of digital innovations in inclusive finance.

View the market research report.