In Guatemala, remittances are a fundamental pillar of the economy, with millions of families depending on them for their daily sustenance. In 2023 alone, Guatemalan migrants sent US$19.8 billion home, representing 20 per cent of the national GDP. These resources are essential for many families, allowing them access to better nutrition, education, healthcare and even the ability to save and invest. However, despite knowing the positive impact of these flows on the national economy, the potential of remittances is often limited by structural obstacles such as high rates of financial exclusion, lack of access to digital financial services and insufficient information about this market.
Aware of these challenges, the International Fund for Agricultural Development (IFAD) is organizing an event that convenes presenters and strategic participants to deepen the dialogue around remittance flows in Guatemala. The objective is to explore innovative strategies to maximize the development impact of remittances, focusing on improving financial inclusion and leveraging digital tools to expand access to financial services, especially in rural areas.
The event acted as a platform for key stakeholders, such as policymakers, financial institutions, remittance service providers and international development agencies, to engage in a constructive dialogue.
Current trends and challenges in the remittance market were presented, and opportunities to foster sustainable development through improved financial and digital inclusion strategies for the Guatemalan population discussed. The meeting established a collaborative network in order to strengthen alliances and share best practices to optimize the remittance market in the country. It aims to lay the groundwork for possible future initiatives to increase the effectiveness of these flows for the country’s economic development.
The main objective of the event was to promote financial inclusion through tailored strategies that improve access to and use of financial services for remittance beneficiaries, especially those residing in rural areas. The event aligned with the objectives set out in the ENIF 2024-2027, driving collaborations that enhance financial inclusion for remittance recipients through digital solutions and tailored financial products. Emphasis was also placed on the importance of digitalization within the remittance sector. By innovating and expanding digital payment platforms, the aim is to create more efficient, accessible and cost-effective remittance transfer channels. This digital transformation is essential to overcome geographic barriers and improve financial access in remote communities.
The event highlighted initiatives such as the RemitScope LAC. This tool was launched and presented for the first time in the region during the event, that provides complete and accurate data on remittance flows in Latin America and the Caribbean, thus improving information collection and dissemination practices. With RemitScope, market players will be able to develop more effective strategies and policies to maximize the development impact of remittances, empowering them with reliable information that fosters informed decisions and a more inclusive and efficient financial ecosystem.
