Ahmed used the settlement money to start WorldRemit, a mobile-money transfer company, in September 2010.
At one time, migrant workers had to visit a money transfer office, such as Western Union, wait in line and pay high fees to both send and collect money. Customers who register their bank information with WorldRemit can send money from anywhere, at any time, with just a few clicks and with lower fees.
The fintech’s London base resembles a typical start-up. It has a sleek, colorfully carpeted open-plan workspace that takes up an entire floor of a skyscraper a few minutes’ walk from Parliament. It has approximately 390 employees worldwide, about 290 in London.
There are some unique touches: Conference rooms are identified not by names but by currency symbols such as the dollar, pound and euro. One corner looks like a mini-United Nations. It’s the customer services department, where a diverse staff speaking dozens of languages field calls from across the world. Customers can send money to over 140 places on the planet, the most remote being Pacific islands including Samoa, Tongo, Fiji and Vanuatu.
The business takes advantage of the explosion in smartphone usage in the developing world, which now allows for cheap and instant communication, as well as the growth of similar phone-based money transfer services such as M-Pesa in Kenya.
“What is driving the remittance behavior has changed, largely because of the instant communications,” Ahmed said.
“Back in my time, when we were recipients of remittances, we could not talk to relatives. But today, the Filipino nurse in London is talking to her mother virtually every day,” Ahmed said. “And so a lot of conversations end up with sharing some money.”
Ahmed sees a direct correlation between the uptick in messaging apps and mobile phones and the frequency of transactions. Where it used to be a big deal to send money, now people send smaller amounts more frequently; his firm completed 750,000 transactions in October, more than double it’s monthly average for 2016.
And in the old days, cash transfers allowed for anonymity and the opportunity for fraud, but the new digital methods create an audit trail showing exactly who sent money to whom.
“One of the things we like in addition to the convenience and the lower cost, is that the digitization really helps us fight financial crime,” Ahmed said. “If a transaction becomes suspicious, there is a wealth of data that we can share with law enforcement agencies.”
The company has raised about $200 million from major investors Accel Partners and Technology Crossover Ventures, early funders of companies like Facebook, Slack, Airbnb, and Netflix; last year, it made $60 million in revenue.
Despite anti-immigration sentiment from President Donald Trump in the United States and across Europe, Ahmed believes there will always be a need for remittances.
“Ever since Homo sapiens left North Africa 5,000 years ago, we’ve been on the move. We’d have all been extinct had we not migrated from Africa,” he said with a laugh. “So migration has become a fact of life, and I think it will continue. I don’t see that really changing.”