remittances - a new perspective · remittances - a new perspective typically by migrant workers to...

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Remittances - a new perspective - June 2011

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Page 1: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

Remittances

- a new perspective -June 2011

Page 2: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

Agenda

Remittances - a new perspective

Page 3: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

About…

Remittances - a new perspective

Typically by migrant workers to their families. Especially from

developed to developing countries

Person-to person, low value – i.e. not commercial or wholesale

payments

Domestic remittances also exist

Recurrent - but typically made by individual transfers (e.g. not by

standing order)

Typically credit transfers

For remittance service providers (RSPs), often indistinguishable

from any other retail cross-border transfers

An international remittance is

a cross-border, person-to-person payment

of relatively low valueThe World Bank

Page 4: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

Facts & Figures

Remittances - a new perspective

Worldwide

remittances totaled $440 billion in 2010 involved some 250 million migrants or 3.2% of

world population annual transactions: 1 to 1.5 billion average transaction value: +/-$ 300

Page 5: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

Facts & Figures

Remittances - a new perspective

EMIGRATION, 2010■ Stock of emigrants: 2,769.4 thousands■ Stock of emigrants as percentage of population: 13.1%■ Top destination countries: Italy, Spain, Hungary, Israel, the United States,

Germany, Canada, Austria, France, the United Kingdom

IMMIGRATION, 2010■ Stock of immigrants: 132.8 thousands■ Stock of immigrants as percentage of population: 0.6%■ Top source countries: Moldova, Bulgaria, Ukraine, the Russian Federation, the Syrian Arab Republic, Hungary, Greece, Turkey, Italy, Germany

Romania inward remittances flow totaled $4,5 billion in 2010 outward remittances flow totaled $310 million in 2009

Page 6: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

How it works now …

Remittances - a new perspective

Sender/

remitter

Beneficiary

/ Receiver

Sending

Agent

Disbursing

Agent

MTO

Country A

MTO

Country B

Debiting

Bank

Crediting

Bank

Message

Holds

funds

Liquidity

provision

Proprietary network

Correspondents

bank system

(balance accounts)

Transactions database

Page 7: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

How it could work …

Remittances - a new perspective

Sender/

remitter

Beneficiary/

Receiver

Debiting

Bank

Crediting

Bank

Message

Collection channels

Distribution channels

SWIFT network

Page 8: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

Focus on…

Remittances - a new perspective

Collection /Distribution Channel agents, mobile, ATM, online …

Market environment regulatory environmentOther players (exclusivities)Compliance (AML/KYC)

Marketing strategies

The challenge is to reach the rural areas

Page 9: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

Agenda

Remittances - a new perspective

Page 10: Remittances - a new perspective · Remittances - a new perspective Typically by migrant workers to their families. Especially from developed to developing countries Person-to person,

Allevo’s approach

Remittances - a new perspective

Participant

Bank 2

Agent/BranchFunds

distribution

Statuses

SWIFTNet

WR pacs:

008 - payment instr.

004 - return

002 - status

Participant

Bank 1

qP

ay

Inte

gra

torq

PI-

FO

Cli

en

t

Mobile

Operator

Collections

Channels

qP

I-F

O