For more than a decade, banks have established themselves as a means of receiving and sending remittances, providing innovative solutions that offer speed, security, and efficiency in these types of transactions.
SANTO DOMINGO.– The participation of multiple banks and other financial intermediation entities in remittance payments increased sixfold between 2010 and 2023, a result of the facilities that the sector has gradually provided to allow Dominicans in the diaspora to send resources to their families, the Dominican Republic Multiple Banking Association (ABA) stated on Tuesday.
The ABA detailed that, in 2010, financial intermediation entities (of which banks represent 88% of assets) concentrated 3.9% of the foreign currency entering the country for that purpose, while 96.1% corresponded to remittance companies. Meanwhile, in 2023, they reached 23.1% (US$2.346 billion), and remittance companies managed 76.9% of these resources, equivalent to approximately US$7.811 billion, it explained.
The association highlighted that, for more than a decade, banks have established themselves as a means of receiving and sending remittances, providing innovative solutions that offer speed, security, and efficiency in these types of transactions.
He explained that, in total, remittances increased 175% between 2010 and 2023, going from US$3.682 billion in 2010 to US$10.157 billion, according to Central Bank statistics.
"Remittances play a fundamental role in boosting the economy, since they contribute to a greater flow of foreign currency into the country, which favors the stability of the exchange rate, taking into consideration that their contribution in foreign currency income in the current account of the balance of payments is approximately 32%," the banking association indicated.
On the household side, these resources constitute an important income for families since they are largely used to cover their basic needs or to pay off debts, contributing to the reduction of poverty and inequality in the Dominican economy, the ABA stated in a press release.
Through an analysis by its Technical Directorate, the ABA observed that 75% of remittances were received in the National District and seven provinces (Santiago, Santo Domingo, Duarte, La Vega, Peravia, Puerto Plata and La Romana) and 25% were distributed in the rest of the national geography.
The banking association specified that the largest flow of remittances received in 2023 came mainly from the United States, representing 85.7% of the total; followed by Spain, with 5.7%; and the remaining 8.6% from other countries such as Italy, Haiti, Puerto Rico, Germany and Canada.
He stated that the multiple banking sector is aware of the effort made by Dominicans living abroad to build a better future for their families, which is why the sector strives to save time and travel costs, as well as guarantee greater physical and cybersecurity for those who send or receive remittances.
Additionally, and in recognition of this contribution from the diaspora, the ABA has made available remote digital signature services, as a way to facilitate saving, home acquisition, among other goals, without the need to move to Dominican territory.
