Remittance Model : A Study of Developing Country in Bangladesh

This study examines and analyses migrant's remittances model based on secondary sources as well as primary survey conducts on 300 Bangladeshi remittances senders in Malaysia. The survey revealed that formal banks and money transfer operators are still prominent channels/access points for sending remittances. However, it is interesting to note that digital channels, such as electronic money institutions (EMIs), payment service providers and online remittance providers, are beginning to become active. In addition, there are certain channels for sending and receiving remittances that are generally recognized at the global level as being “informal” or “semi-informal”. These include carrying cash either in person, through friends and relatives or through courier companies. Other examples may include businesses that are not licensed to carry out remittance transfers, but offer these as an unregulated side business. Informal fund transfer systems, such as the hawala system, where flows are netted off and transfers are based on established, trusted networks (which are unlicensed and unregistered), are also popular informal remittance systems. Finally, this paper has concluded with some policy recommendations