Migrant Workers Are a Growth Engine for Developing Countries, Says Rewire CEO

Guy Kashtan, founder and CEO of mobile banking startup Rewire, spoke Monday at Calcalist’s The Future of Money conference in Tel Aviv

Nurit Kadosh 17:5213.01.20

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Immigrants are a growth engine for developing countries, according to Guy Kashtan, founder and CEO of mobile banking startup Rewire Ltd. Kashtan spoke Monday at Calcalist’s The Future of Money conference in Tel Aviv.

Tens of millions of people leave their countries to work towards a better future for themselves and their families, and these people generate nearly $1 trillion a year, Kashtan said. “One could expect that there would be banks vying for a market of this size, but in reality, many immigrants handle their finances in cash or in alternative financial systems that damage their finances,” Kashtan said.

Guy Kashtan. Photo: Orel Cohen

For the developing countries from which these immigrants hail, such as the Philippines and Nepal, they generate more than 10% of the gross domestic product (GDP), Kashtan said. Work migrants use technologically advanced financial services, he said. Banks in their home countries see them as valuable clients, but in the countries where they arrive to work, banks have little interest in them, Kashtan said.

Founded in 2015, Israel-based Rewire develops a mobile banking platform for international cash transfers that caters to foreigners without a local bank account, allowing them to deposit cash in one country and send it to another. Rewire’s service supports money transfers to countries such as the Philippines, India, Thailand, and Russia. The company has raised $12 million from investors including Viola FinTech, the fintech investment vehicle of Israel-based Viola Group, and Euronext-listed bank BNP Paribas SA.