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Unlocking Remittances: Paving the Way for Digital Financial Services in Jordan
In a bid to boost financial inclusion, a new study has shed light on the potential of remittances in Jordan, highlighting opportunities for digital financial services to bridge the gap between low-income communities and mainstream banking.
Supply-Side Constraints
According to the study, the current supply of remittances services in Jordan is characterized by:
- Limited competition
- High costs
- Lack of innovative digital solutions
The research highlights that many Jordanian residents, particularly those living in rural areas, struggle to access reliable, efficient, and affordable remittance services.
Digital Financial Services: A Game-Changer
The study suggests that digital financial services could be the key to unlocking remittances in Jordan, enabling low-income communities to access a range of financial services, including:
- Savings accounts
- Credit
- Insurance
- Money transfer services
“The potential for digital financial services to transform the remittances landscape in Jordan is vast,” said [Name], lead researcher at DMA. “By leveraging mobile money and other digital channels, we can bring financial inclusion within reach of thousands of low-income individuals and families who have previously been excluded from mainstream banking.”
Recommendations
The research provides a series of recommendations for policymakers, regulators, and financial institutions seeking to promote the development of digital financial services in Jordan. These include:
- Encouraging the creation of a competitive market for remittances services by promoting competition among providers
- Improving regulatory frameworks to facilitate the growth of digital financial services
- Supporting innovative solutions that leverage mobile money and other digital channels
- Targeting low-income communities and Syrian refugees living in Jordan with tailored financial inclusion initiatives
Conclusion
The study concludes that unlocking remittances through digital financial services holds significant potential for improving financial inclusion in Jordan, particularly among low-income communities. By addressing supply-side constraints and promoting innovative digital solutions, policymakers can help create a more inclusive and efficient financial system that benefits all citizens of the kingdom.
About CGAP and DMA
CGAP (Consultative Group to Assist the Poor) is an international organization that works to reduce poverty by improving access to financial services for low-income individuals and communities. DMA (Digital Money Associates) is a research and consulting firm specializing in digital finance and inclusive growth.