Remittance‐Driven Digital Growth Accelerates As Consumers Shift Behaviour Amid Currency Volatility

(MENAFN- Khaleej Times) Global remittance patterns are undergoing a structural transformation as migrant workers increasingly embrace digital channels, even as traditional cash‐based transactions remain deeply entrenched in many expatriate corridors. Currency volatility - from the Indian rupee to the Philippine peso - continues to influence the timing and size of transfers, pushing customers to remit more when exchange rates become favourable. At the same time, financial‐inclusion initiatives and new micro‐services such as small‐ticket credit and digital wallets are broadening access for blue‐collar workers who remain the backbone of global remittance flows.

Against this backdrop, Al Ansari Exchange CEO Ali Al Najjar says the company is sharpening its focus on digital expansion while maintaining a substantial branch presence to serve evolving customer needs.“We are primarily focusing on strengthening our digital capability and ensuring that the infrastructure we have will support the next decade of growth,” he said. Digital transactions now make up about 25% of total transactions, a share that continues to rise at double‐digit rates year on year.“It keeps growing year on year,” he added, emphasising the momentum behind customer migration to online channels.

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Yet despite the digital shift, physical branches remain central to service delivery. With bank‐note exchange and products such as travel cards still heavily reliant on in‐person interactions, Al Najjar said the company's network continues to carry the bulk of activity.“We continue to see strong footfall from blue‐collar customers in our branches,” he noted, pointing out that the company handles over 45 million branch transactions annually, accounting for around 75% of total volumes. Branch openings will continue in new and fast‐growing communities as part of a long‐term hybrid strategy.

Volatility across key remittance corridors is also shaping transaction behaviour. The Indian rupee, which has depreciated by roughly 10% since 2024, has prompted customers to remit beyond routine household support.“During depreciation periods, customers also see it as attractive to send additional funds for savings, property purchases, or other investments,” Al Najjar said, adding that India remains the company's largest and fastest‐growing corridor, with volumes increasing through 2025.

Other South Asian markets show similar dynamics. Currencies such as the Pakistani rupee have been affected by political and economic fluctuations, but remittance flows have remained resilient because they fund essential spending. Digital competition is rising, but overall demand is stable.“The market is not shrinking - it is shifting towards digital, which aligns with our strategy,” Al Najjar said. Meanwhile, the Philippines, consistently among the top three corridors, has seen customers remit higher‐value transfers due to currency weakness, though underlying demand remains steady.

To keep pace with this evolving landscape, Al Ansari is expanding its payments ecosystem through the Al Ansari Wallet and a growing portfolio of value‐added services. Recent additions include 'Send Now, Pay Later' and salary‐advance products, which are available through branches and will increasingly migrate to digital channels. The company's multilingual branch workforce - covering around 10 languages - remains a differentiator in serving its diverse expatriate customer base.

Financial inclusion continues to anchor the company's strategy, particularly for blue‐collar workers who send funds frequently in smaller amounts.“Financial inclusion is central to our purpose,” Al Najjar said, highlighting efforts to simplify digital onboarding and promote financial literacy through partnerships with government entities. He added that 2025 performance remained“positive,” supported by strong corridors, a trusted brand, and the dual strength of branch and digital offerings.

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