How Mexican Fintechs are Having a Social Impact While Disrupting the Remittance Market

Remittances are a lifeline for many struggling families and communities in developing countries. They are directly used to provide food for families, access health services and quality education, as well as clean water and sanitation. The nature of remittances makes them an important and direct vehicle in achieving accelerated poverty reduction.

Financial Technology startups (FinTechs) have emerged with the promise to open the gates of the financial world to the overlooked parts of the population. And thus, lift them out of poverty.

Mexico, being the third-largest remittance corridor in the world, and home to the leading FinTechs in the region, is the perfect playground for disruption.

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Part 1 - The mechanics behind the word “Remittance”

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Let’s be honest, we all have a general idea of what a remittance is, but if we were asked to explain it, we would start to stutter.