Remittance is Ripe for Disruption in Sri Lanka
The Sri Lankan economy is heavily reliant on foreign employment and over the years it has become one of Sri Lanka’s dominant sub-sectors of the economy. Sri Lankan migrant workers form the largest source of income in terms of foreign exchange which makes up to 9%-10% of the country’s GDP. While the remittance inflows of many other countries are projected to decline, the World Bank’s Migration and Development study in 2016 indicated that Sri Lanka’s remittance inflow is poised to grow another 1.6% in 2017.
Despite its importance to the economy, the industry still largely relies on antiquated systems that is heavily reliant on informal channels, brick and mortar infrastructure along with the need for pre-funding. Based on the World Bank’s estimate, it is widely believed that 50% of remittances are done through informal channels which has exorbitant fees that can go as high as 10%-15% of the principle.
To the average migrant worker, paying 10%-15% on every dollar remitted back home can prove to be a less than ideal situation. Enter blockchain, heralded by many industry experts as one the most important innovations since the internet. Blockchain is poised to solve this issue, and provide banks the opportunity to offer remittance services to the migrant population with significantly reduced cost and improved efficiency.
“By using blockchain, we at OKLink can leverage the technology to provide not only the best solution for companies seeking to remit to Sri Lanka, but also to solve some of the age-old problems that have been in the industry, including the need for pre-funding as well as counter party risks, while providing new options for payouts in the ever-changing global economy,” said Jack C. Liu, chief strategy officer, OKLink.
With that in mind, the international conference organisers of BankTech Asia has invited Jack C. Liu, the Chief Strategy Officer of the international blockchain remittance network, to share with bankers in Sri Lanka how they can help the banks to revolutionize the remittance services offered by the banks.
“We’re happy to have Jack as one of the speakers for BankTech Asia in Sri Lanka as we believe that our event can be a very effective platform for the bankers to have conversations with players like OKLink on solving some of the industries pertinent problems,” said Vincent Fong, general manager, Knowledge Group.
BankTech Asia Sri Lanka is organised by Knowledge Group of Companies and will be held at Taj Samudra Hotel from the 21st to 22nd March 2017.
More information on the event can be found here: http://www.banktechasia.com/9th-banktech-asia-sri-lanka-series/