^{Remittances: powerful to address short-term needs}

Remittances have been described a thousand times as one of the backbones of household survival in many emerging economies. They cover daily consumption: food, healthcare, transportation, school fees, or rent, with an immediate and essential impact:

- The money enters the household, usually kept out of the financial system

- It is spent within days, sometimes to relieve from emergencies

- and everyone moves to the next ask

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Those hundreds of billions USD sent every year mostly remain short-lived flows. In other words: remittances sustain consumption, not development.

How to turn a significant part of it into resource for structural transformation?

^{Limited captation by the financial system}

The quick-in/quick-out model is obviously set for short-term relief, not for long-term empowerment stressing the paradox of traditional remittance: massive inflows with minimal structural impact. Developing countries ’economies face low banking rates, which prevents individuals from engaging in long-term structured projects, while organisations, institutions and soverign bodies lack long-term resources.

Diaspora’s money flows definitely have a role to play there.

^{Long-term financial flows: a completely different economic engine}

In contrast, when diaspora capital enters the financial system, everything changes. Such capital becomes a fuel that can help unlock many economic inadequacies:

- Diaspora’s savings in local banks will improve resources to finance SMEs

- Diaspora’s investments in sovereign bonds will help solve the infrastructure gap

- Diaspora’s investment in housing will create local job

These flows:

✔ last over time

✔ circulate within the formal economic system

✔ generate value multiple times

✔ empower entire sectors, not only households

✔ Strengthens institutional funding

This is what truly builds resilient economies.

^{The missing link: financial inclusion as the bridge between the two worlds}‍

The shift from remittances = consumption to diaspora flows = economic capital only happens when people have access to:

- adapted banking solutions

- transparent cross-border payment tools

- savings products

- investment options

- credit opportunities

Financial inclusion is the mechanism that turns spending money into building money. Without it, remittances remain ephemeral. With it, diaspora flows become productive assets.

^{Where IYU positions itself: moving beyond the remittance paradigm}

IYU’s model is deliberately built outside the traditional remittance mindset.

Instead of focusing on one-off money transfers, IYU:

- recruits diaspora clients

- channels their capital towards partner banks in Africa, Asia and LatAm

- strengthens local banking liquidity and foreign currency buffers

- enables banks to lend more sustainably to households and SMEs

- builds continuity between diaspora income in Europe and local economic development

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IYU turns remittances into long-term financial flows, by ensuring the money:

✔ enters the formal financial system

✔ strengthens institutions

✔ supports real economic activities

✔ improves credit capacity

This creates durable economic linkages, not short-lived consumption boosts.

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^{The real shift: from sending money to building economic power}

When diaspora capital becomes part of a long-term financial cycle:

- A mother paying school fees can also save for the future

- A small business can access credit

- A mortgage becomes possible

- A bank can support more SMEs

- A local economy gains resilience

The diaspora transitions from supporters of households to architects of development.

This is the future of inclusive finance.

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^{Time for “enriched remittance”}

Enriched remittance, coming with services and financial inclusion, will create the economic transformation developing countries need.

But diaspora financial flows, when integrated into strong financial institutions, can:

- strengthen national economies

- empower households beyond consumption

- enable investment and entrepreneurship

- reinforce banking resilience

- accelerate inclusive growth

The challenge for the next decade is clear: transforming remittances from short-term relief into long-term economic impact.

And it is precisely in this space, at the intersection of diaspora power, financial inclusion, and sustainable development that IYU operates.

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