How Diaspora Investors Found use of Prepaid Services
Statistics indicate that there is a significant rise in the number of people who either work or do business in foreign countries but still carry out other investments in their country of origin. This practice is more common in Africa with close to 30 Million people said to have migrated from North Saharan Africa itself. The same can be said of other continents though not comparable to Africa.
This group who are often called diaspora, do engage in several investment activities such as imports and exports, real estate business, stock market investments among others. They are constantly in check either directly or indirectly with their business or with people they have delegated duties of managing such investments.
It is approximated that close to 40 billion US Dollars are sent annually by these Diasporas to their homelands. However, it’s not definite how much is the exact remittance these foreign investors make per year but it is said to be significantly large.
A huge number of these migrants transfer funds to families for the purpose of investments such as buying lands, purchasing farm inputs, building houses or business structures. However, there been have been complaints of misappropriation of these funds by the folks and friends who are entrusted with the responsibility of putting these funds into use by the people of Diaspora.
As a result of these concerns, financial facilities i.e. the banking introduced services that would later help those who are far away from home to manage their affairs. And to such, prepaid services came handy. They have been embraced globally and their impact is tremendous.
Prepaid services not only enable one to transact and save but it allows the user to acquire mortgage and loans.
These financial facilities have strengthened their technologies in terms of networks and information sharing such that their clients can access their services from wherever part of the world they may be. This has boosted investor confidence which was lacking especially for those people who are making serious investments away from home. Through these services, people who are living or traveling to other countries are able to make payment for their day to day expenditures. It has reduced the risk of carrying cash as well as increased the convenience of remittance.
Prepaid card comes in different simulations depending on various factors. In a way, they are similar to debit and credit card and they are mad in such a way that they can offer their users same facility as what the banks can offer. This feature makes them convenient for users who are not always in static locations (Tourists, long distance drivers, pilots etc). Through them, one can get mobile and telephone banking and they have an online account that acts as the bank accounts one can check balances and financial history.
People in the diaspora are the most favored by this kind of system as they are capable of doing their businesses, investments and making other transactions without necessarily being physically present.