Types of remittance – Can online remittances help the education and economy of developing countries in LatAm (Latin America)?

In the article How remittance helps economy in Viet Nam, we know that remittance is an integral part of the economic development of Vietnamese people from supporting agriculture to education and developing startups, etc.

Is that similar for some countries in other regions of the world? Let's find out with FinFan through the following article about the impact of online Remittance on developing countries in Latin America.

What is an online remittance? Is that the future type of remittance?

Online remittance is the new type of remittance that has emerged in recent times thanks to the development of fintech.

In recent years we can perform all money transfer operations to your country with just a few clicks and a bank account (sometimes that needs just 1 recipient's ewallet account and it is enough).

For instance, you have a relative in the U.S. and he always sends money back home. Let him know about the FinFan and Remitly cooperation money transfer service so he can make the transaction within just a few clicks, and you will receive the money in 2-3 working days.

Can online remittances help the education and economy of developing countries in LatAm?

To education

According to the new statistics from Global Fintech Series, during the COVID-19 closures less than 50% of the population has fixed broadband connectivity.

*Due to limited access, the only other alternatives for students to connect with teachers is through phone calls or text messages, which took a significant toll on comprehension and learning with studies reporting that fewer Latinx students now meet capabilities according to their grade level.

In fact, the COVID-19 pandemic is estimated to have increased the poverty rate from 47.8% of the population in 2019 to 52.4%.

As a result, the World Bank estimates that millions of children in Latin America may have left the school system because of the pandemic or economic hardships. Moreover, if students are still enrolled in school, many have not yet returned to classroom learning full time and are likely struggling to catch up.*

*Sourced by Global fintech series

Here is the chance for the help of online remittance up their lives. Normally, with traditional remittance methods, the money will take more than 1 working week to reach them, then those struggling people will have a hard time getting enough money to cover their daily lives.

With online remittances, this problem can be solved in a shorter time and can help those people more directly and these students can go to school sooner than waiting for the offline remittances.

Moreover, with the money coming faster, it will support the people here to buy the necessary equipment for their children's learning such as installing the internet, buying more notebooks and pens along with learning tools.

Another problem comes when internet shortages take hold of them. At this time, the only solution for their relatives is to send it directly online through a bank branch or a certain delivery company and their relatives will come to these places to pick up the above amount of money.

They can also choose the service of Moneygram (FinFan’s partner) with approximately 350,000 agent locations in over 200 countries.

To the startups

During the time running a startup, has there been a period when you felt that you only needed money at that moment to get your company out of a crisis situation?

If the answer is yes, then receiving online remittance is very important to you. Why? Because with online remittance you will receive your funds faster so you can get through a crisis instead of waiting for money from the traditional way and letting some opportunities pass.

The same goes for startups in LatAm, where there are more problems than you. Some regions are also facing political crises, such as Brazil and Argentina. Startups here also must deal with many other difficulties and challenges related to national security and alarming currency inflation.

Therefore, receiving online remittances quickly will also greatly affect their business development decisions. At this time, they quickly have more capital to solve the company's internal problems and will cope with some other difficulties from the outside (such as political overthrow will also more or less affect business).