{
  "title": "Fintech Potential for Remittance Transfers: A Central America Perspective",
  "publication": "IMF Working Papers, June 25, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2021/06/25/fintech-potential-for-remittance-transfers-a-central-america-perspective-461266",
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  "summary": "This paper analyzes the potential for fintech to facilitate cheaper and more efficient remittances, and to enhance financial inclusion in Central America.",
  "sections": [
    {
      "heading": "Key findings and analytical conclusions",
      "content": "- The paper analyzes the potential for fintech to facilitate cheaper and more efficient remittances, and to enhance financial inclusion in Central America.\n- Digital remittances remain nascent in the region, primarily reflecting:\n  - behavioral inertia,\n  - small cost advantages of digital over traditional channels, and\n  - inadequate financial literacy.\n- Through expanded alliances between traditional and fintech operators, digital remittances can:\n  - further reduce transaction costs, and\n  - reach remote, low-income households in a timely and secure manner.\n- A meaningful expansion of fintech remittances necessitates:\n  - an enabling regulatory environment for digital financial services, and\n  - KYC and AML/CFT requirements proportionate to the value of transfers."
    },
    {
      "heading": "Policy recommendations and implementation priorities",
      "content": "- Promote expanded alliances between traditional financial operators and fintech firms to lower transaction costs and extend reach to remote, low-income households.\n- Strengthen financial literacy initiatives to address behavioral inertia limiting digital remittance adoption.\n- Create an enabling regulatory environment for digital financial services that balances innovation and consumer protection.\n- Ensure KYC and AML/CFT requirements are proportionate to the value of transfers to avoid unnecessarily hindering low-value digital remittances."
    },
    {
      "heading": "Publication metadata and identifiers",
      "content": "- Authors: Julia Bersch, Jean François Clevy, Naseem Muhammad, Esther Perez Ruiz, Yorbol Yakhshilikov\n- Date: June 25, 2021\n- Series: Working Paper No. 2021/175\n- Issue: 175\n- Volume: 2021\n- Pages: 52\n- DOI: https://doi.org/10.5089/9781513585420.001\n- Stock No: WPIEA2021175\n- ISBN: 9781513585420\n- ISSN: 1018-5941"
    },
    {
      "heading": "Thematic tags and subjects",
      "content": "- Subject: Balance of payments, Financial inclusion, Financial markets, Fintech, Mobile banking, Remittances, Technology\n- Keywords: C. remittances cost, Caribbean, Central America, East Asia, Financial inclusion, Fintech, Fintech remittance, Global, Mobile banking, Remittances, remittances corridor, remittances digitalization, remittances' fee, South Asia\n\nSource: IMF Working Papers — \"Fintech Potential for Remittance Transfers: A Central America Perspective\", June 25, 2021.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/06/25/fintech-potential-for-remittance-transfers-a-central-america-perspective-461266"
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    "Authors: Julia Bersch, Jean François Clevy, Naseem Muhammad, Esther Perez Ruiz, Yorbol Yakhshilikov",
    "Published: June 25, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513585420.001",
    "The paper analyzes the potential for fintech to facilitate cheaper and more efficient remittances, and to enhance financial inclusion in Central America.",
    "Digital remittances remain nascent in the region, primarily reflecting:",
    "Through expanded alliances between traditional and fintech operators, digital remittances can:",
    "A meaningful expansion of fintech remittances necessitates:",
    "Promote expanded alliances between traditional financial operators and fintech firms to lower transaction costs and extend reach to remote, low-income households.",
    "Strengthen financial literacy initiatives to address behavioral inertia limiting digital remittance adoption.",
    "Create an enabling regulatory environment for digital financial services that balances innovation and consumer protection.",
    "Ensure KYC and AML/CFT requirements are proportionate to the value of transfers to avoid unnecessarily hindering low-value digital remittances.",
    "Authors: Julia Bersch, Jean François Clevy, Naseem Muhammad, Esther Perez Ruiz, Yorbol Yakhshilikov",
    "Date: June 25, 2021",
    "Series: Working Paper No. 2021/175",
    "Issue: 175",
    "Volume: 2021",
    "Pages: 52",
    "DOI: https://doi.org/10.5089/9781513585420.001",
    "Stock No: WPIEA2021175",
    "ISBN: 9781513585420",
    "ISSN: 1018-5941",
    "Subject: Balance of payments, Financial inclusion, Financial markets, Fintech, Mobile banking, Remittances, Technology",
    "Keywords: C. remittances cost, Caribbean, Central America, East Asia, Financial inclusion, Fintech, Fintech remittance, Global, Mobile banking, Remittances, remittances corridor, remittances digitalization, remittances' fee, South Asia",
    "**Working Paper**"
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