UNCDF aims to improve the functioning of the remittance market to increase the financial resilience of migrant families, while strengthening the economic development efforts of the origin and host countries.

As new technologies have emerged in recent decades, a disconnect has grown between the remittance services on the market, the policies that govern them, and the needs and behaviors of migrant populations. This has resulted in limited adoption of digital remittance channels. The opportunity to transition migrants from cash to digital remittance methods that are safer, more affordable, and more easily tracked, remains largely unrealized. To bridge this gap, UNCDF is committed to working with stakeholders to promote discussion and learning around building enabling ecosystems, designing migrant-centric products, and making evidence-based decisions.

Digital remittance and fintech solutions have the potential to reach women and people with low incomes, thereby contributing to women’s empowerment, inclusive economic growth, and wider financial inclusion and resilience – yet there have been very few studies of impact on migrants sending remittances and their recipients. Remittances may be one of the most obvious financial services for fostering positive effects in developing economies, but clear insights on this are limited. This gap in knowledge and research on the impact of remittances on financial inclusion, resilience and inclusive economic growth hinders remittance service providers (RSPs) in reaching the ‘last mile’, where migrants and recipients in host and origin countries rely greatly on these income flows. It also hinders Central Banks and regulators in their understanding of the effects of remittances on wider financial inclusion and inclusive growth.

UNCDF is seeking an organization to deliver one or two client-level impact evaluation on inclusive digital remittances and financial service innovation for migrants and their families.