Updated May 28th, 2024 at 23:07 IST

Remittances and Economic Growth: A Blessing for Emerging Markets

54% of graduates financed by Prodigy Finance send remittances back home, which helps promote financial development and has a poverty-mitigating impact

Reported by: Digital Desk
Sonal Kapoor, Global Chief Commercial Officer at Prodigy Finance | Image:Prodigy Finance
  • Expat graduates contribute financially through remittances, which promote development and poverty reduction
  • As graduates experience career advancement, their remittance contributions can grow, providing a sustained source of financial support for their home communities
  • Many graduates actively contribute to development projects in their home countries

A study by Prodigy Finance indicates that international students who choose to remain in their study abroad destinations after graduating have a significant positive impact on their families and communities in their home country. 

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54% of graduates financed by Prodigy Finance send remittances back home, which helps promote financial development and has a poverty-mitigating impact on their home countries. These additional financial resources directly benefit families and communities, fostering economic advancement. When used for education, health, or small businesses, remittances can raise the level of capital in communities. Their contributions not only benefit individual families but also have far-reaching impacts on the broader community.

Sonal Kapoor, Global Chief Commercial Officer at Prodigy Finance, said, “By remaining in their country of study, they not only contribute to the host economy but also maintain a strong connection to their home countries, fostering positive change through both financial and knowledge-based support."

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Many expat graduates from emerging markets express a strong desire to give back to their home countries beyond just sending money. They are willing to share their expertise with the workforce back in their home country. These contributions can be in the form of remote work, knowledge sharing, and participation in development projects. This ultimately leads to the social and economic development of their home communities.

86% of the students funded by Prodigy Finance are from emerging market countries. They have limited access to financial resources to access world-class education. Many families don’t have the income or collateral to support their children’s educational aspirations. So when someone from such a region goes abroad to pursue higher education and takes up employment there, it benefits their whole community. 79% of international graduates from emerging markets send or intend to send remittances within the next 5 years.

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The impact of these graduates extends beyond borders. Graduates who stay on can help fill skill gaps in the labor market. Expat students also bring diverse cultural perspectives, enriching the host country’s cultural landscape. This can lead to greater cultural awareness and sensitivity among local students that benefit graduates throughout their careers.


About Prodigy Finance

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Founded in 2007, Prodigy Finance is an international student lender that has helped over 40,613 international masters students attend the world’s top universities. To date, Prodigy has disbursed over $2.09b in funding to students from more than 150 countries.

Prodigy Finance is fuelled by impact investors and other private qualified entities who invest in tomorrow's leaders while earning a financial and social return. Prodigy’s borderless lending model enables students to apply for a loan based on their future earning potential and not just their current circumstances and credit history.

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Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom

 

 

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Published May 28th, 2024 at 23:07 IST