Using the Global Findex survey data, the various factors that may impact the use of banks and digital channels for remitting money have been explored. The cross-country analysis shows that while many people send/receive remittances in low-income countries, they are still transmitted through informal channels. In India, it is observed that the use of financial institutions/mobiles as remittance channels have improved from 2017 to 2021, especially for the lower-income people. The econometric analysis conducted for both conventional and digital modes of remittance transmission shows that while the banking infrastructure matters for formal remittance transmission, the poorer countries are able to address the problem of lack of adequate infrastructure by using the mobile platform.
