AIMS

Migration Remittances and Mobile Technology

Liberalization, privatization, and deregulation of the telecommunications sectors has dramatically leapfrogged the continent into the use of innovative new technologies. The advent of relative affordability of mobile phones has dramatically propelled many unbanked migrant households into formal economic mainstream where instant, safer and less costly migrant remittances are delivered over the cell phone. This has important implications of financial inclusion for not only previously unbanked migrant households but the country too. Remittances have surpassed donor aid and provide a relatively stable source of foreign exchange and improve overall creditworthiness of many African economies. Therefore, the way people earn, save and spend money is changing, both the household and the national space.

Conversely, financial literacy education has failed to keep pace. Moving to the cities securing a salaried job, saving earnings in the bank and building a rural home. This used to be the recipe for achieving the '”dream”, but times are changing. Nearly half of working Kenyans report having a side hustle to help make ends meet. Roughly the same number are estimated to be credit invisible – meaning they lack credit scores or are unscorable due to limited information about their financial habits, preventing access to quality credit essential for buying a home or starting a business. Home ownership in the city or even the village is increasingly out of reach for first time buyers as available supply tends to favor the wealthy.

With this in mind, AIMS seeks to convene a workshop targeting non-profit organizations that serve low-income urban migrant workers, refugees, and undocumented migrants. Through interactive discussions, and presentations we seek to impact on participants new approaches for incorporating 21st century financial literacy skills into migrants’ livelihoods.

We seek participation of UN Habitat, Housing Societies, Financial Institutions, Money Transfer Companies and Government Housing Departments. We seek to develop online tools, strategies and resources on everything from budgeting – via an interactive grocery shopping experience – to home buying simulations. It's really important that those in our communities serving populations in need of these resources have access to the latest pedagogical tools and research in the field so that they can better serve their constituents. Such conferences provide the time and space to focus on learning about the most recent financial trends and to expand the tools we have to better utilize remittances.