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IMMIGRATION

Italy’s immigrants send billions back home

Italy's much maligned migrants are providing a crucial lifeline to families and friends in third world countries by sending home billions of euros, new figures show.

Italy's immigrants send billions back home
A migrant studies a map of Europe in a Sicilian classroom. Photo: Gabriel Bouys / AFP

Kumar Rakesh is an immigrant who has been living in Italy since 2000, and runs an internet cafè in Rome. Every month he sends money back to his family in the Punjab region of India, near Pakistan.

“Once we are old enough, we need to earn enough money to support our family,” he told The Local.

“Here you can earn €1,000 a month but there it's almost impossible. It's not that prices are different, sugar and petrol cost almost the same,” he added, underscoring the need to send money home.

Immigrants in Italy sent €9.2 billion to family and friends back home in 2014, according to figures from the International Fund for Agricultural Development (Ifad).

The country accounts for almost 10 percent of the €97 billion remittances sent from Europe, and has the fifth highest figure in Europe, behind Russia, the UK, Germany and France, according to the report.

Of the amount sent by foreign workers in Italy, €2.93bn went to Africa, €2.75bn to Asia Pacific, €2.66bn to remittance receiving European neighbours like Romania and Albania, €0.8bn to Latin America and the Caribbean and $0.09bn to the near east and Caucasus.

The money sent by immigrants like Rakesh provides a valuable lifeline for people living in unstable countries. Remittances pull people out of poverty and provide funds for budding entrepreneurs, to promote development.

Not only are total global remittance payments worth more than global aid, they are growing faster than overseas development aid too. The vast majority of remittance payments are regular and continuous, so therefore provide a much more reliable source of income than foreign direct investment.

According to figures from the UN's High Commissioner for Refugees (UNHCR), some 54,000 asylum seekers have arrived in Italy since the start of the 2015.

Some stay, but many move to other countries, where they hope to find everything denied to them amid the political turmoil in their homelands.

In 2014, the Italian government granted residency permits to 20,600 asylum seekers who chose to rebuild their lives in Italy, a figure that is 27 percent higher than it was in 2013.

These immigrants will play a central role in rebuilding their own countries through the money they send back home.

Given the importance of remittance payments in rebuilding war-torn and unstable areas, recent political infighting between northern and southern regions of Italy, as well as between neighbouring EU countries over migrant quotas, would seem misplaced.

The sooner migrants can find work and send money home, the quicker the situation will improve for everybody.

But this is no easy feat. It can take years for immigrants to find jobs, as they are slowed down by bureaucracy. When their papers finally arrive, Italy's sluggish economy prevents them from finding well paid work.

It's little wonder they are are heading north, drawn by the promise of stable, well-paid employment.

Those who stay struggle to integrate and seldom belong to the Italy where tour guides lead groups through cobbled streets.

They belong to a second Italy, which can be seen down side-streets or at the edge of piazzas. The places where African and Indian immigrants work in small businesses or sell souvenirs to tourists.

These two sides to Italy meet at Rakesh's internet cafè. Here, American gap-year students call home while migrant workers send payments back to their families using money transfer services.

At one computer sits Gallo, 27, an immigrant from the Senegal. He has been in Italy for five years and is still looking for work, in spite of being a trained glass-maker.

He said people send money home to help their families, but like Rakesh, he suggests that remittances are not some sort of economic panacea:  “It depends where they are – if they're in the city then €50 is nothing. If they live in the country it's worth a lot more,” he told The Local.

Five years sounds like a long time. Is it not easy to find work in Italy? Gallo smiles.“It takes up to a year and a half to get your papers, and then maybe you need to retrain to find a job.

“As soon as I have the chance to get out of here I'll go – I won't even think about it.” 

For members

MONEY

The verdict: What are the best banks for foreigners in Italy?

Picking the right banking option in Italy can be hard, but The Local's readers have shared their experiences and advice to give you a head start.

The verdict: What are the best banks for foreigners in Italy?

If you’re planning on moving to Italy, opening a bank account will be one of the very first things you’ll have to do in the country.

Overseas accounts (especially those from outside the eurozone) are unlikely to cut it for everyday tasks like paying bills and taxes, receiving an Italian salary and taking out insurance as many Italian authorities require an account with an Italian IBAN number for these purposes.

Italy has a large number of banks to choose from, ranging from traditional Italian institutions to international banks to a host of online-only operators that have grown in popularity in recent years.

But Italian-only online information, confusing paperwork and a swarm of different offers can make it hard to find the right option, which is why we asked readers of The Local to share some of their best insider tips in a recent survey.

Traditional v online banking

If you’re looking to open an account in Italy, one of the very first decisions you’ll be faced with will be whether to opt for a traditional institution or a digital banking platform. 

Overall, around four in ten respondents indicated an online banking platform as the best option for foreigners in the country, with many pointing to low account fees, advantageous currency exchange rates and a far greater degree of flexibility compared to traditional institutions. 

READ ALSO: Which documents do I need to open an Italian bank account?

The majority of respondents however selected a traditional Italian bank as the best option, citing greater levels of trust in traditional institutions, the advantage of dealing with people face to face and, in some cases, the availability of specific services and information for foreign nationals. 

Traditional banks

Italy’s biggest private bank, Intesa Sanpaolo, was recommended by multiple readers as the best option for foreign nationals in the country.

Intesa San Carlo, Italy

People walk past the headquarters of Italy’s Intesa Sanpaolo in Turin’s Piazza San Carlo in January 2017. Photo by Marco BERTORELLO / AFP

Iain Gosling, a UK national living in Pisa, Tuscany, highlighted the quality of their online services, saying: “The app is easy to use and it translates into English automatically. Online banking is easy. We maintain bank accounts in the UK and send funds to ISP, no problem.”

Another British national living in Pisa focused on the advantages of dealing with Italy’s largest bank, saying that “a lot of operations are done through ISP so the transaction fee is low” and the large number of branches across Italy makes it easy to “open an account quickly in person.”

Laura, a US-Italian citizen living in Ascoli Piceno, Marche, praised Intesa Sanpaolo for their customer service, saying staff were “patient and understanding” following a bad experience with another bank.

READ ALSO: What you need to know about opening a bank account in Italy

Besides Intesa Sanpaolo, UniCredit was also mentioned on multiple occasions within the survey, though opinions on Italy’s second-largest bank were mixed.

Stewart, an Australian national living in Umbria, said they “never had any problem paying bills or making transfers” even when out of the country, and the bank has “a pretty good website, including an English-language (sort of) option”.

But other readers had rather different experiences. Laura, from Ascoli Piceno, said her experience with UniCredit was “a nightmare” as “they couldn’t open the account correctly” and trying to solve the issue was “humiliating and impossible”. 

Cindy in Orte, Lazio, mentioned that UniCredit “arbitrarily raised checking account rates for foreigners who are not residents from 20€ annual to 120€ annual”, whilst another reader reported that “it took someone I know three months to open an account”.

Finally, two readers recommended BancoPosta – a branch of Italy’s Post Office offering basic financial services – based on low fees, presence in all major Italian towns, and easy sign-up procedures.

Online banking and transfer platforms

Wise (formerly TransferWise) was by far the most highly recommended digital platform within our survey.

A British reader in Tuscany hailed it for its “speedy transfers, good exchange rates, and prompt problem resolution”, highlighting the contrast with “slow, expensive and paper intensive” traditional banks.

Revolut

A close-up detail of a card from digital bank Revolut. Photo by JUSTIN TALLIS / AFP

Jenny Lantschner, a British-Italian national in Lucca, also pointed out Wise services’ speed, saying that it’s “very easy to use on a smartphone and will send funds within minutes”.

Besides Wise, several readers recommended Italian online bank Fineco, which they praised for easy account-opening procedures, efficient online operations and low fees. 

Lithuania-based Revolut was also recommended by some readers on the basis of “low cost, convenience, and near spot-market rates for currency exchange”, though others mentioned having problems with money transfers. 

For instance, Bob, an American national in Siracusa, Sicily said that “English, American, and Italian banks all refused to fund” his account.

Finally, Steve in Lombardy advised against opening accounts with Germany-based N26 as they “have been closing accounts in Italy and not giving back the money to customers”.

Though N26 is an active digital bank in Italy, it has been operating in a limited capacity for nearly two years following on-site inspections in late 2021 that revealed shortcomings in terms of security legislation and weaknesses in anti-laundering measures. 

Readers of The Local have recently reported having their accounts shut and being locked out of their funds for no apparent reason.

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