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Global remittance map, failure of remittance techs to disrupt the market and what role do agent networks play today?

A short study on the back of a recently published IMF paper

Several factors come to play:

  • Overall retrenchment of banks and sizzling of the global correspondent banking network, a result of more watchful application of not only stringent AML directives, but OFAC surveillance — both coming with heavy fines;
  • The lack of banking infrastructure willing to make a dent in relatively under-developed regions, resulting in KYC profiles of a receiving party being at best — based on alternative data that is incongruent with bank requirements
  • The ensuing bad lemon car situation: bad practices displace good ones. Unavailability of banking network dissalows for building bank-grade identity. Unavailability of identity disallows for bank-grade products provisioning. Disruption did not happen, the market rather evolving slowly.

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Daniel Gusev

14 years in global payments and ecommerce. 3 exits. VC at @gauss_vc