LightCastle to Conduct an In-depth Assessment of the Remittance Landscape Focusing on Demand and Supply Side Dynamics for UNCDF

United Nations Capital Development Fund (UNCDF) has commissioned a study to LightCastle titled ‘Comprehensive Scoping and Needs Assessment for Strengthening Remittance Utilization: Understanding Context, Bridging Gaps, and Promoting Sustainable Development in Bangladesh.’ The study aims to delve into the dynamics of remittance utilization among migrant workers and their families in Bangladesh, identifying challenges, and recommending systemic solutions.

Over the span of six months, LightCastle will conduct an extensive needs assessment and baseline study across six districts of Bangladesh. Data collection involves conducting 1600+ surveys of remittance beneficiaries and returnee migrants, FGDs, and KIIs. A number of stakeholder consultation and validation meetings are also planned for triangulating study findings.

The key objectives include the following:

• the remittance landscape, including understanding the needs and hurdles faced by migrant workers and their families,
• identifying gaps in remittance flow and utilization,
• understanding the roles of stakeholders involved in migration and remittance processes, and
• exploring opportunities for improving the financial stability of migrant workers and their households.

Previous studies by UNCDF revealed that a significant portion, approximately 90%, of remittance flows in Bangladesh are directed towards household consumption. This trend underscores the challenge of utilizing remittances for asset accumulation and long-term economic stability, primarily due to limited financial literacy and access to formal financial services.

In response to these challenges, the Embassy of Switzerland and UNCDF have jointly launched the ‘Shafal – Remittance Management for Socio-economic Stability of Migrant Families’ program. This initiative aims to address the hurdles surrounding remittance utilization and enhance the asset-building capacity of migrant workers and their families. The findings of the study will be instrumental in designing interventions to improve the financial well-being of migrant workers and their families.

In this context, LightCastle will play a pivotal role in conducting an exhaustive assessment of the existing regulatory frameworks and financial services accessible to migrant workers and their families. On the other hand, this comprehensive analysis will include stakeholder mapping and prioritize evaluating the financial literacy levels within the target demographic.

By the end of the study, LightCastle intends to provide a comprehensive understanding of the remittance landscape in Bangladesh. A data dashboard and a number of reports will be published.

Furthermore, it seeks to establish a robust baseline for monitoring and evaluation of the Shafal programme and explore strategies to enhance financial literacy, promote financial inclusion, and stimulate entrepreneurship among Bangladeshi workers and their families.