Financial Inclusion Consortium for Central American Remittances
The Financial Inclusion Consortium for Central American Remittances (FICCAR) is building on U.S. Vice President Kamala Harris’ Central America Forward initiative, to boost people-to-people remittance to account transfers by at least 20 percentage points in the next five years. This collective commitment will result in digitizing nearly 14 billion in remittance transactions since they will go into an account first, instead of immediately being paid out in cash, resulting in a “win, win, win” effort through a safer, more secure, and lower-cost transaction. In addition, remittances in an account provide an opportunity for increasing savings habits, building assets, and helping small businesses to grow - all things that provide a sense of “rootedness” for the population.
Members
Observers
"Remittances offer great opportunities for increasing financial inclusion by bringing people into the formal banking system. We are grateful for the pledges of these partners to facilitate this financial transition for so many people." - Marcela Escobari, Assistant Administrator for Latin American and the Caribbean, United States Agency for International Development.
“Remittances to this region have and will continue to be a significant source of income for many families. I am delighted to see this creative partnership between public and private stakeholders to improve financial inclusion; make remittances more secure; and bring more people into the formal banking system.” - Dr. Phil Gordon, Assistant to the President and National Security Advisor to the Vice President of the United States
"Digital financial services can strengthen competition, efficiency, and transparency for remittance senders and recipients. And of course remittances are lifelines for so many people and small businesses. I look forward to following how the work of the Consortium advances meaningful financial inclusion across El Salvador, Guatemala, and Honduras." - Alexia Latortue, Assistant Secretary for International Trade and Development, U.S. Department of Treasury
“Remittances have long contributed to economic growth and prosperity for people in northern Central America. This consortium, led by the Partnership for Central America, will help make remittances more secure, inclusive, and productive – helping Central American communities prosper.” - Brian A. Nichols, Assistant Secretary of State for Western Hemisphere Affairs, Bureau of Western Hemisphere Affairs, U.S. Department of State
What are some of the benefits of deposit-to-account remittances?
Increased financial inclusion for recipients
Greater safety and security compared to receiving funds in cash
Reduced costs of sending
Greater traceability facilitates Anti Money Laundering oversight
Digital Financial inclusion helps drive economic growth
Remittances (USD, 2023 estimated)
As of 2022, remittances represent over 20% of GDP for the three countries.
Source: Central Bank of Honduras and the Inter-American Dialogue.