Velasco Arellano, Silvia; (2021)
Fintech, remittances and migrants' prosperity: A systematic review and exploration of the Mexican case.
This working paper was originally submitted as a dissertation as part of the MSc in Global Prosperity. It will explore, through a systematic review, to what extent fintech—financial technologies—are an instrument to transform migrants and remittance recipients’ foundations of prosperity, understood as the baseline for people to thrive, linked with secure jobs, income, financial stress, financial and digital inclusion, and local income equality. Additionally, it explores what the elements shaping fintech’s impact are. Findings illustrate technology is positively impacting prosperity, yet, adopters are not those on the last mile; fintech leave behind those unbanked, unskilled, highly rural-based and with strong needs for financial services. Governments’ role concerning capacity, fintech regulation and ICT promotion is crucial for drawing impact, along with fintech service attributes such as domestication, agent banking and interconnectivity. Based on findings, the working paper explores the Mexican case, as a country highly uneven and dependent on remittances, and its potential to boost prosperity for migrants and remittance recipients through fintech. It concludes the nation has the capacity and necessity to accelerate its fintech ecosystem and strengthen migrant’s foundations of prosperity, yet, government and fintech need to work together to reduce access’ disparities among rural and urban, acknowledging the potential market in rural areas, where 70% of the residents are unbanked despite they received 60% of national remittance inflows.