A game changing model for boosting foreign remittance

The country has been experiencing a severe foreign currency crisis for the past two years. Our two main sources of foreign currency are exports and remittances. While we have devoted significant attention to increasing exports, we have largely neglected the potential of remittances. In the past fiscal year, exports have been in the range of 47 billion USD. If we consider a value addition of around 50%, the net foreign exchange earnings is around 23 billion USD. On the other hand, judging the current trends, this year the remittances could be in the range of 27 to 30 billion USD.

Although we understand the management theory of "carrot and stick," when it comes to remittances, our focus has been more on the stick than the carrot. We have heavily clamped down on informal remittance channels like hundi while offering only a modest 5% incentive on remittances sent through official channels.

To receive remittances through formal means, workers are required to send money through banks and licensed remittance houses. Consider an unskilled laborer working long hours in Dubai, often illiterate and exhausted by the end of the day. Instead of navigating the complex process at an exchange house, filling out forms, and dealing with bureaucracy, they simply call a hundi operator, agree on the exchange rate, and settle the amount in cash—bypassing formal channels entirely.

Maslow's hierarchy of needs theory explains that while monetary motivation stems from physiological and safety needs, human behavior is also driven by higher needs for love, belonging, esteem, and self-actualization. Unfortunately, we have not adequately addressed these higher needs for our wage earners abroad. Often, they are treated poorly—evidenced by their experience at airports and foreign embassies, where they are looked down upon despite being a key pillar of our economy.

Our Chief Advisor recently made an astute observation: wage earners should be treated as VIPs. To realize this, I propose a dual strategy focusing on both short- and long-term solutions that address their dignity, esteem, and sense of belonging.

Short-Term Solutions: Introducing a "Wage Earners Elite Club"

In the short term, the government should establish a "Wage Earners Elite Club," where members are categorized based on the remittances they’ve sent over the past year. Membership would be divided into tiers: Platinum, Gold, Silver, and Bronze, with each tier offering increasing levels of benefits. These benefits would include:

1. VIP Airport Services: Separate immigration and check-in counters would be established exclusively for Elite Club members. Upon arrival and departure, cardholders would be provided with transportation to and from the airport at the government’s expense. Depending on their category, they would be chauffeured in private cars or buses.
2. Exclusive Lounges: Platinum, Gold, and Silver cardholders would have access to dedicated airport lounges, both when departing and upon arrival in the country. These lounges would provide comfort and convenience to reflect their status as valued contributors to the economy.
3. Recognition and Awards: Cardholders would be recognized at national-level ceremonies and awarded crests for their contributions. Platinum and Gold cardholders would be treated as Commercially Important Persons (CIP), invited to government events, and recognized publicly for their efforts.
4. Free Travel Benefits: Platinum and Gold cardholders would receive free round-trip tickets to Bangladesh, depending on the volume of their remittances. These could be in business or economy class, based on their tier.

5.?????? Develop a Remittance App for Wage Earners

The app should aim to streamline the remittance process for wage earners, ensuring secure, fast, and easy transfers to their home countries. Key features to include:

·?????? Payment Gateway Integration: The app must support seamless integration with major banks and remittance houses globally, allowing users to send funds directly to bank accounts, mobile wallets, and remittance centers.

·?????? Currency Conversion and Fees Transparency: Display real-time currency conversion rates and any applicable fees before transactions, ensuring full transparency for users.

·?????? Security & Compliance: Implement robust security measures like biometric login, two-factor authentication (2FA), and compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

·?????? Tracking & Notifications: Real-time transaction tracking with updates via push notifications, SMS, and email, giving users peace of mind.

·?????? Multi-language Support: Offer the app in multiple languages to cater to a diverse, global audience of wage earners.

·?????? Customer Support: In-app customer support with live chat, FAQs, and 24/7 assistance to address user concerns promptly.

6. ????????? Extensive Communication of the Remittance Model

Communication is key to the success of this remittance model. A well-thought-out promotional strategy should include:

• Embassy Collaboration & Roadshows: Embassies should lead the promotion of the app in expatriate communities, organizing roadshows and seminars to demonstrate the app’s benefits and functionality.
• Media Campaigns: Launch an extensive media campaign across multiple platforms, including: Print Media: Full-page ads in national and international newspapers and magazines targeting expatriate communities. Electronic Media: TV and radio spots in countries where wage earners are primarily located, with special focus on high-viewership times. Social media: Utilize platforms like Facebook, Instagram, Twitter, and LinkedIn to promote the app, with targeted ads focusing on expatriates.
• Influencers and Testimonials: Engage community influencers, prominent expatriates, and satisfied users to share their positive experiences and demonstrate the app's efficiency.
• Email Campaigns: Email targeted user groups such as current expats and wage earners in collaboration with employers and embassies.

7. ????????? Customer Satisfaction and Feedback Mechanism

To ensure continuous improvement and provide insights into the effectiveness of services offered, incorporate a feedback and evaluation system:

• Net Promoter Score (NPS) Implementation: Immigration Services: Measure the satisfaction of users with immigration-related services provided via the app (e.g., visa tracking, residency permit renewals). Meet and Greet Services: Assess the experience of wage earners who use meet and greet services at airports or other official venues, which can be integrated into the app. Performance of Embassies: Allow users to rate the performance of embassy staff and services, giving embassies valuable feedback on areas needing improvement.
• In-App Survey Integration: Create short, simple surveys that users can easily complete after interacting with each service.
• Continuous Monitoring: Regularly review NPS scores and customer feedback to identify trends and areas for improvement, driving updates and enhancements to the app and its services.

These improvements enhance user experience, strengthen communication, and provide measurable feedback mechanisms, driving greater satisfaction and uptake of the remittance services.

Long-Term Solutions: Sustaining Esteem and Incentivizing Remittances

Over the long term, we must ensure that wage earners are not only incentivized monetarily but are also recognized for their ongoing contributions.

1. Annual Card Renewal and Upgrades: The Elite Club cards would be renewed annually, with membership categories reassessed based on the volume and consistency of remittances sent in the previous year. Top performers in each category could be awarded additional benefits, such as free return tickets or higher-tier travel options.
2. Healthcare and Educational Benefits: In addition to travel benefits, cardholders would receive life insurance and health coverage for their families, up to a specified limit. They would also be given priority access to healthcare facilities and schools for their children.
3. Enhanced Dignity and Respect: Embassies and airports would be required to adopt a customer-service approach in dealing with wage earners. Special training programs could be implemented for embassy staff to ensure that wage earners are treated with respect and professionalism.
4. A Comprehensive Social Safety Net: Wage earners, particularly those in the higher tiers, would have access to a social safety net, including pension schemes, educational scholarships for their children, and government-backed housing loans. This would create a sense of security, encourage them to send money through formal channels, and build loyalty to the nation.

By addressing both their monetary needs and their emotional need for esteem and recognition, we can ensure that our wage earners feel valued. The result will be a significant increase in formal remittance inflows as we tap into their desire for respect, recognition, and belonging.

Final Thoughts

The measures suggested above are just a starting point. If implemented properly, they could transform how we view and treat our wage earners, elevating them to the status they deserve. By aligning our policies with their aspirations for respect and recognition, remittances could increase exponentially, helping us navigate the foreign currency crisis while enhancing the lives of those who contribute so much to our economy.

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