Global Money Transfer Index: Nigerian Consumers Canvass Greater Innovation for Future Remittance Needs
Kayode Tokede
Western Union’s inaugural Global Money Transfer Index in its latest report has disclosed that Nigerian consumers are demanding for greater innovation from money transfer providers to support their future remittance needs.
The index also revealed that about 89 per cent of consumers who receive remittances in Nigeria want services integrated into a ‘super app’ with which they can manage all personal finance needs.
According to the index, 79 per cent consumers want platforms with local-language capabilities.
The Global Money Transfer Index asks consumers how, when and why they use international money transfer capabilities today, as well as their expectations for tomorrow. The results bolster Western Union’s ‘Evolve 25’ strategy to combine high-value, accessible retail and digital financial services for all.
The Regional Vice President, Africa at Western Union, Mohamed Touhami El Ouazzani in a statement said, “Nigeria’s Government and Central Bank of Nigeria (CBN)’s efforts in developing the necessary infrastructure has boosted connectivity and inclusivity. As a result, consumers have become attuned to the opportunities and flexibility innovations can bring. We expect this to continue, underscored by a strong emphasis on speed, convenience and reliability.”
The Index reflects Nigeria’s fast-paced economy, as the country’s government continues to implement its National Digital Economy Policy and Strategy.
According to the Index, evidence of its influence may be why 61per cent of consumers who receive money prefer using digital methods from start-to-end today.
Speed of transfer here is key and ranks as the most important factor considered by consumers when deciding which provider to select for collecting transfers. When asked about the future, the balance starts to shift, with more receivers (53per cent) desiring choice between receiving money in-person or digitally.
In 2022, Nigeria’s inbound remittance flows were estimated to be $21 billion, making the nation the biggest receiving market in Africa, and ninth largest globally.
At present, 63 per cent of consumers in the country receive money at least once a month. As consumers further adapt to higher global cost of living, 85per cent expect to receive more money within the next 12 months.
Nigeria’s senders also agree they will need to transfer more in the 12 months ahead (82per cent). However, they also face a cost of living dichotomy: Three-quarters (75per cent) say global economic condition mean they cannot transfer as much as they did previously.
“Economic headwinds have impacted all consumers globally, and remittances play an integral role in ensuring people and their communities can keep moving forward, leveraging opportunities,” said Ouazzani.
