Cleo Hanna and Lummi Anton
AcrossLimits
Migration: A Timeless Phenomenon in Modern Context
Human migration has profoundly shaped civilization, from the initial expansions out of Africa to the globalised movements of today’s world. Technological advancements, and geopolitical instability have amplified migration flows, with Europe emerging as a primary destination due to its economic opportunities, cultural diversity, and humanitarian policies. Over the past decade, the continent has absorbed millions of migrants and refugees from conflict zones like Syria, Afghanistan, and Ukraine, alongside economic migrants from Africa, Asia, and the broader Middle East. This influx has exposed the systemic challenges that migrants often face, which include discrimination, social exclusion, and barriers to financial inclusion.
Against this backdrop, financial technology (Fintech) has emerged as a transformative force, offering tools address these systemic inequities and empower marginalised groups. Migrants often face significant challenges in accessing financial services, which can hinder their integration into society and their ability to achieve economic stability. Language barriers, lack of credit history, and institutional discrimination often exclude them from banking systems, loans, and affordable remittance channels. Fintech disrupts these barriers through digital innovation, democratising access to financial tools and fostering economic integration. One example is the way in which fintech platforms are facilitating the distribution of humanitarian aid and support to refugees. Digital payment systems allow aid organisations to distribute funds more efficiently and transparently, ensuring that resources reach those in need. This not only helps refugees in the short term but also enables long-term integration and reduces the risk of social exclusion.
Beyond facilitating aid distribution, Fintech solutions are reshaping how migrants engage with financial systems in more sustainable and empowering ways. For example, by harnessing alternative data sources, such as rent and utility payments, they are able to build creditworthiness without relying on traditional banking history. Furthermore, mobile-first banking apps, which often have multilingual interfaces by design, lowers the entry barriers (acc to fi-compass) by removing the need for fixed addresses or in-person visits. Meanwhile, gamified educational tools are enhancing financial literacy, helping users better understand budgeting, saving and investment in accessible and engaging ways with financial systems they are otherwise unfamiliar with (acc to Finovate). One of the most notable innovations stem from blockchain technology, whereby blockchain-based remittances (Based on JRC Science Hub) significantly reduce the cost of sending money across borders, bringing fees down from an average of 7% to as low as 3%.
These barriers they face, left unaddressed, perpetuate cycles of poverty, underscoring the urgency for scalable solutions that align with Europe’s social contract. As philosopher Hannah Arendt noted: “The essence of human rights is the right to have rights.” Fintech’s role in actualizing this principle cannot be overstated.
European Integration Efforts
The The European Union has prioritised integration through legislative and social frameworks, playing a crucial role in fostering a more inclusive environment for migrants:
- The European Agenda on Migration: This comprehensive plan aims to manage migration flows and ensure the integration of migrants into European societies. It includes measures to improve access to education, employment, and social services.
- The European Social Fund (ESF): The ESF provides funding for projects that promote social inclusion, employment, and education. It supports initiatives aimed at improving the socio-economic conditions of minorities.
- The EU’s Anti-Discrimination Policies: The EU has enacted legislation to combat discrimination based on race, ethnicity, and other factors. These policies aim to ensure equal opportunities and protection for minorities. (EU Racial Equality Directive).
Additionally, many European countries have introduced integration programs that provide language courses, job training, and cultural orientation for new immigrants. These programs aim to help migrants adapt to their new environment more quickly and become active members of society. By combining these political efforts with the innovative solutions offered by Fintech, Europe is making significant strides in addressing the challenges faced by migrants and ethnic minorities.
Addressing the Migration Crisis: Fintech’s Humanitarian Role
The refugee crises of the 21st century that impacted Europe have highlighted the need for comprehensive solutions to support the integration of large numbers of refugees and asylum seekers. United to help the financial ecosystem has tried to facilitate integration as quickly as possible and to find tools that ease adaptation processes by providing tools that help refugees access essential services in an unknown country. Fintechs like Monak , Boss Money and Revolut provide refugees with digital IDs and multi-currency wallets, enabling access to healthcare, education, and cross-border aid. Also, a pilot project run by UNHCR in Ukraine shows how Blockchain Technology can be used in practice.
The UNHCR has won an award for its innovative use of blockchain technology to deliver cash assistance to forcibly displaced people and recognizes the UNHCR’s commitment to leveraging technology for efficient and effective humanitarian aid delivery. Below are additional solutions that have worked to address the barriers faced by refugees.
1. Credit History Transfer and Building; Pillar is a UK-based fintech that allows immigrants to transfer their credit history from their home country to their new country. This service enables immigrants to access credit more easily and start building a local credit history.
2. Affordable Remittance Services; WorldRemit is a global fintech company that provides low-cost remittance services. By leveraging digital technology, WorldRemit reduces the fees associated with sending money internationally, making it more affordable for migrants to support their families back home.
3. Fair Pay and Salary Processing; Kadmos is a Berlin-based fintech that aims to ensure fair pay for migrant workers. Kadmos provides a salary processing platform that minimizes transaction fees and administrative burdens for employers paying salaries internationally. Justus Schmueser, Kadmos co-founder explained: “The financial restrictions placed on migrant workers are truly shocking. Employees need to wait days or weeks for their hard-earned salaries to reach their families and are then forced into paying exorbitant transaction fees or have to carry large sums of cash at their own risk. At Kadmos, we are working to change the status quo through cutting-edge financial technology and ensuring the hard-working people who power the global economy can keep more of their well-deserved salaries’’.
4.Multi-currency accounts; Previously known as Leaf Global Fintech, Boss Money utilises blockchain technology to provide secure, low-cost access to multi-currency accounts, enabling users to send and receive remittances, make payments, and exchange currencies via smartphones or basic phones. Friends and family can easily contribute to users’ accounts.
The start-up leverages blockchain technology to protect customers’ savings at low costs. In 2022, the start-up was acquired by IDT Corporation, and has, over the years, been recognised as the winner of the developing world technology category in Fast Company’s 2021 World Changing Ideas Awards, the UNICEF Innovation Fund, and is an alum of the IBM HyperProtect Accelerator.
When a refugee opens a bank account in a minute or an entrepreneur secures a loan using alternative data, it can be the sign of a big change, a Shift from Exclusion to Empowerment.
In closing, fintech’s greatest contribution may be its redefinition of belonging. By transforming smartphones into passports for economic participation, it empowers migrants not just to survive in Europe, but with dignity, restoring the essence of new-life and demonstrating that technology can be both pragmatic and compassionate.
