Citi lays out strategy to modernise cross-border remittances in Asia - Trade Treasury Payments

Citigroup has published a detailed strategy for overhauling cross-border remittance services in Asia, one of the world’s largest remittance corridor. Citi’s report, Shaping Cross‑Border Remittance Propositions in Asia, covers technology investment, regulatory alignment, and inclusivity-driven pricing. 

Several countries in Asia, including India, China and the Philippines, are among the top remittance recipients in the world. In 2023, India alone received more than $100 billion in inflows. Estimates indicate that the entire Asian remittance market is around $700 billion. 

Despite this high value, market inefficiencies, such as high transaction fees and fragmented regulation, persist. Citi, which attributes these challenges to outdated settlement infrastructure and inconsistent compliance frameworks across jurisdictions, hopes to help address the root causes.

The bank plans to use real-time payment rails and blockchain-based protocols to reduce settlement times from days to seconds. Its CitiDirect BE platform already provides multinational clients with clearer visibility and operational control. Consumer-focused enhancements include mobile app upgrades to support multi-currency accounts and real-time tracking. 

The bank considers reduced-fee remittance products, educational programmes for low-income users, and digitisation of paper-based processes as necessary for aligning with the UN Sustainable Development Goals focused on financial inclusion and poverty reduction. 

Citi acknowledges that rising competition from digital-native remittance providers like Wise and Remitly will create a challenge, especially given that 89 per cent of banks in Asia expect to lose market share to faster, cheaper disruptors. To mitigate cybersecurity risks and fraud, Citi says that it plans to investment in AI-driven monitoring and strengthened encryption protocols. The bank is also planning expansions of its remittance services into emerging Asian economies such as Vietnam and Indonesia, where digital adoption is on the rise.

The success of Citi’s new blueprint will hinge on execution across technology, regulation and inclusive outreach strategies.