Any conversation about South-East Asia is incomplete without talking about the blue-collar or gig workers. Every year thousands of workers and laborers migrate from countries like India, Bangladesh, Pakistan, Srilanka, Philippines to other countries in the Middle East and South- East Asia for a better livelihood. Once getting their job in those countries, these blue-collar workers send a part of their earnings in the form of cash or goods to support their families back home. These transfers are mostly known as migrant remittances, which are multiplying over the past few years, and now represent the largest source of foreign income for several developing countries.
However, it’s tough to estimate the amount of remittance flow each year, as most of them occur in unofficial channels. In most cases, unofficial channels don’t provide real-time funds transfers, and the amount gets settled periodically through a commercial bank. In several poor households, remittance may buy essential goods, healthcare, and education. In wealthier families, remittance may provide capital for starting a business. Sadly, most of these Blue Collar workers are either unserved or underserved by most of the legacy banks, which makes it impossible to improve their standard of living.Read More