Rebtel Launches a Bank for Migrants

The Swedish technological company Rebtel made adjustments to their offers through adding a digital bank to their phone, communication and on-demand job programs for migrant workers. The idea is to help these customers build a new life and a banking history in their host country.

Rebtel initially proposed phone cards and other communication services. In 2015, their main investors pondered over this FinTech’s strategy so it would fully focus on addressing migrant workers’ needs.

Their existing phone service (€10/month package for unlimited international calls) already attracted roughly 500,000 users. They will now be adding a digital bank for these same targets. This service will allow unbanked migrants to transfer money and make transactions using the means of payment they will have stored beforehand. This service is scheduled to be made available in Q4 this year.

Rebtel should also expand this service to the US, where they are also testing an inclusion, work-based program in Miami and Houston. They pay $20/hour to people (so far, 15,000 persons) in charge of recruiting new customers for their services.

Comments – Targets with high potential

Roughly 270 million migrant workers have been identified in Western Europe, and they are becoming niche targets for financial companies which haven’t been addressing these segments until recently. In fact, they are not easy to identify and acquire. Rebtel already features a low-cost phone service and was able to attract 500,000 of these migrants, likely to adopt their other service, as well. According to a study by the World Economic Forum, the proportion of unbanked people reaches 50% among migrants, meaning that especially crafted financial services are relevant.

With this launch, the Swedish FinTech intends to solve issues faced by migrants, regardless of whether they are moving by choice or as refugees, and help them build a good life in their new country. Rebtel will rely on this launch to increase their revenue this year up to $100 million. Their offer will be based on a wallet, but could be expanded over time.

Through this solution, Rebtel will then be entering a market already covered by other players to address un(der)banked populations. AXA, for instance, proposes international money transfers, and Tala has an instant credit granting service in emerging countries.