More than one million Azerbaijani citizens live outside the country and many of them provide financial support to their families in Azerbaijan by sending remittances. IOM understands remittances as multidirectional, voluntary, and private international monetary transfers that migrants make, individually or collectively, to people with whom they maintain close links. The way they are used is under the full discretion of the sender and the recipient. Remittance transfers, circulation and distribution are often hampered by the insecurity of informal transfers, high costs of legal transfers and the lack of related financial services, thus creating challenges for migrants to send remittances home and leverage these funds for longer term objectives. In light of this, the Government of Azerbaijan and IOM will jointly implement an initiative which supports the digitalization of remittance transfers and identification of modalities for more efficient and cost-effective remittance flows, as well as improved linkages to greater financial inclusion of migrants leading to larger and more sustainable socioeconomic impact. The proposed project will: i) conduct a comprehensive study which will analyze the existing policies, strategies and regulations to determine legal, social, economic and gender-related gaps regarding the growth of digital remittances and adjacent financial services; ii) develop recommendations and the roadmap to promote partnership among public and private institutions that will lead to improved banking and financial services; and iii) pilot a digital remittance application and capture lessons learned.