Growth of Indian Expat Remittances Strengthens Cross Border Commerce Flows

 

As the Indian rupee has weakened there has been a double digit increase in remittance flows from Indian communities in the U.S. to various financial institutions in India. This has led to a wave of new business for the money transfer industry players such as Western Union, MoneyGram and Indus American Bank.

How much money is flowing across those borders? Here are some facts:

– India’s second largest private sector lender reported a 30% volume increase in remittances June compared with January

– In 2012 Indians sent over $69 billion home, up from $63 billion the year prior

– A money transfer firm in India reported a 20% increase in remittance flows between April-June compared with the same period the year prior (1)

This increased flow of cross border activity puts an additional requirement on money transfer to effectively handle government mandated identity verification requirements. Verification of the identity of individuals who are transferring and receiving money flows is important to prevent fraud and reduce illegal money flows.

Proper use of online identity verification technology can allow money transfer firms to keep transfer delay times to a minimum while also remaining compliant with regulations. Any true identity verification solution verifies and validates the element data found within an identity: name, address, phone, and tax/national ID number. Each of these elements can be verified in real time using web service based platforms.

As global cross border commerce activity grows Know Your Customer (KYC) and Anti-money laundering (AML) controls become a requirement for every online merchant and money transfer agent. Learn the role that address and identity solutions play in addressing these scenarios at www.globaldataconsortium.com. While there sign up for a trial of Worldview and see your customer, market and global opportunities more clearly.

(1) All fact references from the Wall Street Journal Article “India Expat Remittances Up” August 20, 2013

(2) The photograph is of Vinay Bhanawat from Udaipur, Rajasthan, India who has collected 89,118 banknotes ending with 786 of Denomination 10. Total value of his collection is Rs. 11,24,775, via WikiMedia Commons.