Xpress Money, a global money transfer company, has taken a set of initiatives, including expansion of its network and establishment of migrant training center in 2015, in order to foster the remittance inflow through legal channels in Bangladesh.
Under its plan for 2015 in Bangladesh, the company, which witnessed 12 per cent growth in remittance inflow in the last fiscal year, will also focus on using alternate channels such as cell phone and payment cards, allowing the customers to enjoy more easy transfer of money.
Sudhesh Giriyan, vice president and business head, Xpress Money Services, shared the plan while he was addressing a press briefing at a city hotel Monday.
The briefing was attended, among others, by Shamim Iftakhar, country manager of Xpress Money in Bangladesh, and Zakaria Mahamud of the company.
"Illegal channels are fueled by the attraction of immediate payment to beneficiaries," Mr Sudhesh said, adding they will also arrange financial literacy programmes through grass root initiatives in 2015, curbing illegitimate channels and thus helping Bangladesh achieve the estimated target of $20 billion of inward remittance by 2020.
"We will establish one migrant training center in 2015 in Bangladesh. Later, it will be replicated in different regions of the country."
Quoting an estimation of 'unofficial' statements, Mr Sudhesh said that around half (about US$ 10 billion) of remittances is coming through illegal channels per year.
Xpress Money, he continued, increased its network in the country by 27 per cent comparing to the last year. In 2014, the company has 11,000 agent locations in Bangladesh, which is up from 8644 in 2013. The number across the world in 2014 is 170,000.
It witnessed a 12 per cent growth in remittance inflow volume in the fiscal year (FY) 2013-14 comparing to the previous year in the country, he said.
In the FY, the total remittance inflows to the country through legal channels stood at US$ 14.22 billion, of which approximately 10 per cent was sent through Xpress Money.
Mr Sudhesh further said, nearly 50 per cent of the total remittance inflow to Bangladesh in the year was contributed by some districts -- Chandpur, Brahmanbaria, Comilla and Greater Dhaka.
Other contributing districts include greater Noakhali (9 per cent), greater Chittagong (8 per cent), greater Faridpur (6 per cent) and greater Mymensingh (6 per cent).
While citing the company's various services, he said that its alternate channels such as any bank account credit and mobile wallets, financial literacy programmes such as Haat Bazaar campaigns and Grahak Somabesh and special campaigns such as 'say no to hundi' encouraged the Bangladeshi migrants to send their hard-earned money through legal ways.
"We remain optimistic on the robust growth of remittances to the country this year. There is a significant demand for Bangladeshi workforce in international markets across sectors such as agriculture, infrastructure and hospitality services," he said.
Coupled with its transparent pricing, affordable transfer fees and competitive exchange rates, Xpress Money's innovative products have led to capturing a significant market share in Bangladesh, he added.
Remittance in Bangladesh accounts for about 12.2 per cent of its gross domestic product (GDP).
md.ali.du@gmail.com
