Keeping up with surge in remittances to Pakistan
Rohit Garg, Head of Business Banking - Mortgages, Liabilities and Remittances
Mashreq provides secure channels for fast and safe money transfers
Peer-to-peer money transfers, also known as remittances, make up a large portion of a country's overall GDP. Research has shown that remittances are particularly key in developing countries where the transfer of funds can significantly help improve the quality of life of families and communities that require financial aid and relief.
Remittance is a lifeline for many people in the developing world, and it comes as no surprise that there has been a surge in the number of money transfers globally. There are many factors behind the increase of remittances, but economic migration and displacement are key drivers.
According to recent findings, the size of remittances - including officially recorded and unrecorded transfers through informal channels - could be much larger than the recordings of The World Bank. Remittances are now more than double the size of net official flows, standing close to foreign direct investment as the number one transfer as a source of external finance for developing countries.
Here in the UAE, the number of remittances have significantly increased over the years and Pakistan stands out as a popular destination for money transfer. The cost of sending money between the UAE and Pakistan is considered one of the cheapest in the world, according to the World Bank, and to date; Pakistan remains one of the top 20 remittance-receiving countries globally.
External factors, including globalisation, are creating more distance between families and loved ones and as a result, remittances are on the rise. To meet this demand, banks must create innovative solutions to make the transfer of money as efficient as possible.
With this in mind, Mashreq has focused its efforts on making money transfers as easy and safe as possible. In April 2017, the bank launched QuickRemit, a new remittance service to Pakistan in response to the increasing rise in remittance transfers into the country.
With QuickRemit, customers can now transfer Pakistani rupees free of charge through the bank's digital platforms: MashreqOnline and Snapp. QuickRemit offers customers the option to transfer money instantly with a quick registration process. Once completed, the customer can start sending money to their respective beneficiaries immediately. This service is free, incurs no fund transfer fees or corresponding bank charges, and is applied to all banks across Pakistan.
In the digital environment, secure money transfer is a concern for consumers. QuickRemit is highly secure and has been created with security in mind. For example, if there are any discrepancies between transactions, the system will reject the request and the transfer will become null and void.
Customers are at the forefront of the business, and as a bank, services are designed to be instantaneous, safe and beneficial to both the sender and receiver. Whether it's sending money to a relative, family or to another bank account in Pakistan - these transfers are free of charge with zero remittance fees and are processed immediately with simple solutions to access and deliver money. Remittances by and large remain an especially important and stable source of private inflows to developing countries, as they bring in large amounts of foreign cash flow, which in turn sustain economic growth in the long run.
In today's fast-paced environment, efficiency is key. Remittances continue to be an integral part of people's lives in this part of the world and as such, it is important to create solutions to meet the increased demand for quick, safe and accessible services.