EFTs and the role in Financial Inclusion - Part 1

In this enlightening episode of Crosstalks: Conversations that Drive Innovation, we host Hugo Cuevas-Mohr, a seasoned payments expert and author of the 2023 book, Sending Money, Forex, Remittances, Migration, and the Fintech Revolution. Episode 11 navigates the transformative journey of family remittances with the advent of Electronic Fund Transfers (EFTs) and how this initiated the financial inclusion of millions of remittances senders and receivers.

Dive into a fascinating tale narrated by Hugo, taking us back to the late 80s with the anecdote of an elderly woman faced with receiving her first EFT. This incident led to Hugo's profound realization about the importance of customer education and habit transformation. The episode emphasizes the remarkable role EFTs played in bringing rapid technology-driven transformation, especially for the unbanked clients from marginalized communities and rural areas.

The discussion deepens into the role of the agents and intermediaries in fostering customer trust, eventually streamlining the laborious physical processes into quick and easy digital transactions. We also delve into the necessity of remittance best practice consolidation across different locations, facilitating an industry shift, despite the limited initial interaction between early market players, banks, and regulators.

Further, Hugo provides valuable insights into the initial licensing of remittance companies, the formalization of Money Transfer Operators (MTOs) in Latin America, and the consequent evolution in Asia and Africa, reflecting the extensive adoption of new technology at different paces and scales across these regions.

Listen to engaging stories unraveling the early struggles of remittance senders and receivers. Understand financial inclusion and evolution of remittance as a significant milestone in their lives. Discover the origins of the remittance market in various regions like the Dominican Republic, Brazil, Peru, Chile, and other parts of Latin America. Learn about the experiences of the early pioneers in dealing with a predominantly informal market and building trust among their customers.

Stay tuned till the end to delve into the changing dynamics of the remittance industry, explore the future landscape of the sector, and get a sneak peek into 'Sending Money', a remarkable book based on these experiences.