Gbenga Okejimi, country manager of WorldRemita digital money transfer service that
transfers money around the world, tells BusinessDay ISAAC ANYAOGU how the business of
money transfers have been impacted by the Coronavirus pandemic.
What distinguishes WorldRemit from other online money transfer services? What makes
your services unique?
WorldRemit is a digital money transfer service that transfers money from over 50 countries to
150 receive countries. We are 100% digital on the send side allowing customers to send money
24/7. We have a wide range of options in the receive countries, options include bank deposits,
cash collection, mobile airtime top-up and mobile money. Our customer service is 24/7
supporting customers to send money abroad in a cost effective, secure and convenient way.
This distinguishes us from the traditional players that employ brick and mortar stores with a lot
of operational inefficiencies.
Give us an insight into your background – education, professional training, past work
experience, etc. What prepared you for this role?
I have an MBA with specialization in Financial Management from the Lagos State University. My career includes key roles at Universal Trust Bank (which later merged with Union Bank) and First Bank of Nigeria to name a few. My education and employment journey along with first hand knowledge of the industry have prepared me for my role as WorldRemit Country Manager for Nigeria & Ghana.
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Kindly explain how the process of international money transfer through WorldRemit
works?
At WorldRemit, we are 100% digital from the send side. A sender can go to our website or
download our App from an IOS or Android device. The sender can then register on our platform providing basic KYC details followed with the receiver’s information. Select any of our receive options like Bank Transfer, Cash pick up, Mobile Money and Airtime top up. Please note that the sender pays for the service while the service is at no cost to the recipient. The recipient does not need a smartphone to receive the money.
What precautions should a person making international money transfers take?
WorldRemit is a fully licensed international money transfer service. Operating as an Authorised Electronic Money Institution, we are regulated by the Financial Conduct Authority in the UK and also have to meet the requirements of global regulatory bodies. By adhering to each country’s regulations, we further protect our customers against fraud and safeguard your money. We continuously advise our customers on cyber security, key things to look out for and stress that they send money only to people that they know to avoid falling victim to scams.
Do you receive the money in the currency it was transferred or is it converted – if it is – at
what rate?
We operate in several countries and each country has its own regulation depending on its
economic policy. Some countries allow payments in foreign currencies while others like Nigeria
only allow payments in the local Nigerian currency, the Naira. The rates of conversion are as
advised by the Central Bank of Nigeria on a regular basis.
What trends have you identified with recent customer transactions?
We are in interesting times with the Covid-19 pandemic. The Social Distancing measures put in
place by the government has challenged the Cash pick up services in many countries across
the globe. Customers have to be careful when visiting bank branches for their financial services.
As a result of these restrictions, we have seen an upswing in our digital channels such as Bank
Deposits and Mobile Money. Some countries like Fiji have actually seen a total migration to
digital platforms as a result of the Covid-19 pandemic, but it is still too early to state that cash isno longer king.
How long have you been in operation and which other regions in Africa and across the
world do you operate in?
WorldRemit has been in operation for 10 years. We are a global company operating in over 50
send markets and 150 receive countries. We offer over 6,500 money transfer corridors globally.
We have offices in London, Denver, Warsaw, Cebu and Johannesburg, South Africa.
What value would you say, digital payment solutions are adding when banks still report
high foot traffic in banking halls?
Digital payment solutions have assisted in driving the message of financial inclusion. Across
Africa, we have seen an uptake in the use of M-PESA for bill payments and other services.
Ghana today is the fastest growing African country in Mobile Money with about 35million wallets
and volume reaching USD 42billion in 2018 compared to USD 29billion in 2017 (Source:BoG).
In Nigeria, banks have invested significantly in technology to drive acceptance of digital
solutions and reduce traffic in the banking halls. We continue to educate our customers about
the importance of digitization and the inherent benefits.
A sore point in payment solutions like yours is charges, why do you think customers
consider them prohibitive and how can this situation be improved?
Charges are an important part of any business. There are costs involved in the process of
sending funds from a sender in the US to a receiver in Accra or Lagos. Such costs include
marketing, compliance, systems maintenance etc. In addition, the traditional players need to
pay agency fees to agents in their brick and mortar stores. These all add up to the cost of
sending a transfer. WorldRemit was established with the intent to provide a cost effective,
flexible and convenient money transfer service. We have optimised our 100% digital solution to significantly reduce the cost of our service. We also offer the first three transfers on our platform at no cost to the sender to provide value for money.
Since you engage in international money transfers, how are you affected by foreign
exchange volatility?
Remittance business is predominantly an FX business because it involves the transfer of value
in one currency to another. If a sender in the United Kingdom provides GBP to be exchanged to
Naira in Lagos, Nigeria, there has to be a basis for conversion. It therefore implies that as a
company we are affected by foreign exchange volatility. However, we do have in-house experts
that manage our FX liquidity and hedge against any anticipated losses.
What message, if any, about international monetary transfers do you think the public is
not getting or getting wrongly?
Some persons actually believe International Money Transfers could be sent at “No fee”. No
such thing exists as long as it is business.
How have regulatory policies impacted the activities of companies like yours and what
reforms do you think will best serve the public in your field?
Regulatory policies are significant to maintaining ethical procedures in the International Money Transfer business. They have helped to instil globally acceptable standards for all players in the ecosystem. The FX market in Nigeria is a major driver for the Money Transfer business, it is therefore expedient that checks and balances are put in place for all licensed operators.
However, the Central Bank needs to ensure strict compliance to its rules as some operators,
especially the unlicensed ones have been alleged to contravene the rules. Money Transfer
Operators are in the business to make money. The CBN should be flexible enough to allow for
some margins as the current scenario is not encouraging for business to thrive.
