Postbank has inked a partnership with Xpress Money, the UAE-backed foreign exchange and cross-border international payment solutions platform, to provide instant global transfers to its physical stores.
Postbank said it will provide the services at its 98 branches across 43 counties in Kenya. The deal will see the fully government-owned firm become the latest financial institution to tap into the diaspora remittances.
“Through the partnership, Kenyans will be able to send money to their loved ones across borders conveniently and reliably with low transfer fees and very competitive exchange rates,” said managing director Anne Karanja.
“Due to our strong network, customers’ money will reach their desired destinations without any struggles or hitches.”
Xpress Money’s global network includes 185,000 partner locations in 170 countries.
Founded in 1999, it is the remittance arm of the UAE Exchange family and a pioneer in the instant transfer industry.
Xpress said it will fast track a local expansion plan.
following the deal.
“Kenya is a very important market for us; we have been strategically expanding our footprint across the country to enable convenient money transfer services for our customers,” said Xpress Money chief executive Sudhesh Giriyan.
“This partnership is anticipated to grow Postbank’s money transfer market share and open additional revenue lines for the bank.”
Kenyans living abroad sent home more money last year than the rest of the East Africa diaspora combined, World Bank data shows.
Kenya’s Diaspora remittances in 2018 stood at Sh280 billion, eclipsing the Sh242 billion sent to the rest of Eastern Africa — comprising Uganda, Tanzania, Rwanda, Burundi, South Sudan and Ethiopia.
There are more than three million Kenyans living abroad, many of whom have attained tertiary education and are working in formal sector jobs.
The US is a popular destination for Kenyans looking for greener pastures and further education, with the latter mostly remaining in the destination countries for work after graduation.
In recent years, however, the Middle East and China are also emerging as a choice destination for those looking for external work opportunities, in line with the rapid economic growth in these regions.