Financial inclusion and long-term savings of Moldovan labor migrants were discussed during a hi-level workshop organized by IOM in Moldova. The workshop focused on solutions to overcome challenges faced by the banks to promote financial services customized for the migrants and diaspora, on financial literacy programs to empower migrants and their families.
The event was attended by the Deputy Governor of the National Bank of Moldova, Tatiana Ivanicichina, the Secretary of State of the Ministry of Labor and Social Protection, Felicia Bechtold, the President of the Association of the Moldovan Banks, Dorel Noroc, the Director General of the Organization for the Development of Entrepreneurship in Moldova, Dumitru Pintea, and the IOM Moldova’s Chief of Mission, Lars Johan Lönnback.
The event was an occasion to also discuss awareness-raising measures to inform and encourage diaspora to use remittances not only towards a consumption-focused economy, but on productive investments to support development and the labour market in Moldova.
The initiative is informed by the IOM’s study “Saving more in Migration: Supporting Migrant Workers to Israel to Enhance Savings, Remittances, and Sustainable Benefits of Labour Migration”, which was supported and presented by Donhatai Harris, IOM international consultant from the University of Oxford, and Vitalie Rapcea, IOM national consultant from Expert Group.
“With the support of our colleagues in the public authorities, especially the National Bank, have big plans in this segment. Today banks have already started to get to know their customers digitally. It is also possible today, on the basis of some of the banks’ products, to make payments abroad, without having to use the SMS receipt tool to authenticate this payment. We also have big plans related to international transfers between the countries of the European Union and the Republic of Moldova, as well with the support and effort of our colleagues at the National Bank. We are going to join SEPA, the payment system in which these payments are to be made at low cost and practically instantly the person transfers the required amount of money”, stated Dorel Noroc, President of the Association of the Moldovan Banks.
“With an estimated number of 1 million Moldovan citizens residing abroad, in 2022 remittances accounted for around 14% of GDP. However, grant workers often do not reach their savings objectives, especially female migrant workers and remittance recipients face the greatest challenges in accessing financial services and have low rates of financial inclusion. There is a market segment which needs to be fully valorized. This project draws inspiration from behavioral economics, specifically the “Save More Tomorrow” program, which has successfully increased retirement contributions”, said IOM Moldova’s Chief of Mission, Lars Johan Lönnback.
