Meeting Customers Where They Are - The Future of Money Transfer
Tulix Team
Creating a new life in a foreign land is far from easy, more so when you’re working to provide for yourself and for your family back home. You know first-hand that every penny counts and you hope that your hard-earned cash helps your people meet their goals so that your sacrifices are worth it. However, sending money can be complicated and let’s face it, you’re not always sure the money is being used as intended.
Western Union’s recent Global Money Transfer Index surveyed 30,600 consumers from 20 countries across the Middle East, Africa and Asia Pacific and here are some of the findings.
Recipients Need More Money Than Ever
Kenya is the third-largest remittance recipient in sub-Saharan Africa, with an estimated 3.2 billion USD in inflows in 2022 and family support remains the top reason to send money back home.
In fact, 78% of Kenyan recipients are requesting more money and 73% of Kenyan senders are sending more money than before due to the current high cost of living. Thus, the frequency and amount of remittances are now guided by the day-to-day needs of people back home rather than end-month salaries.
Apart from family support, Kenyans living abroad are also keen on investing for the future, covering education costs for their dependents and supporting local businesses.
At Tulix we believe that the sender-receiver relationship is special because you have the chance to accomplish joint financial goals with your people from afar but it remains an opportunity with a couple of barriers to overcome.
“Not knowing if all the money I send is actually how much is due to the institution and whether or not the family member has been honest.” -Tulix 2020 Survey
One key barrier is a lack of accountability and feedback loops. You know how it goes, a family member asks you for shopping money and you’re not sure exactly how much is needed but you send the money anyway.
Digital Remittances Set to Dominate
According to the Western Union report, digital remittances are on the rise in Kenya with an estimated 38.5% of funds being sent through digital platforms. Time-consuming paperwork and waiting in long lines to send money to your people simply won’t cut it anymore.
In a time when 61% of senders prefer digital platforms and 81% of receivers want ‘super apps’ that allow them to put the funds to immediate use (more on this soon), it’s clear that innovative digital solutions will impact the lives of many.
“It’s too much admin to keep track of who needs paying and how much is in my South African account. Also needing to wait until money reaches my account back home before sending the money on to businesses leads to delays in payment sometimes. I forget to do the next step.” - Tulix 2020 Survey
Finally, the report suggests that partnerships between money transfer operators and mobile money providers could help to enhance financial inclusion in Kenya. This could make it easier and safer for recipients to receive the money they need to pay for everyday needs.
So what if you could send money for airtime and shopping to loved ones, all from the comfort of your phone or computer…wherever you are? Introducing the Tulix Web App!
You Asked, We Listened
We are excited to announce that we’re rolling out a web app to meet the need for more convenience among consumers in the diaspora. Guided by insights from customers living abroad, this product provides an easy and reliable way to regularly pay for everyday items like food for their people back home.
On Tulix Web, customers simply select the merchant(s) they want their beneficiaries to shop from like supermarkets and pharmacies so that they enable their loved ones to spend wisely while cultivating positive money habits.
Kenya’s diaspora is crucial in supporting the country’s economic development through remittances. For many, sending money home is not just a financial transaction but a way to support their communities.
The resilience and determination of Kenyans abroad to keep providing for their people don’t go unnoticed. Very soon, through Tulix Web, Kenyans abroad can cater to the everyday needs of their people back home no matter where they are in the world.