workers’ remittances - world banksiteresources.worldbank.org/.../whyte_swift_project.pdf · •...
TRANSCRIPT
Your global platform for person-to-person payments, now mobile enabled
Workers’ Remittances
Michael Whyte, Senior Market Manager 22 October 2010
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Agenda
• The importance of remittances • Challenges in service delivery • SWIFT Workers’ Remittances
Workers' Remittances
Remittances is big business
Total transactions 1 to 1.5 billion Formal / Informal TX 85 / 15 % Industry revenue USD 15 billion Bank share 20 to 30%
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Transactions received
Transactions sent
USA 140 mn
Mid-East 49 mn
EU (11 countries)
92 mn
Canada 22 mn
Australia 16 mn
Mexico 45 mn
India 27 mn
Morocco 10mn
LATAM 30 mn
Philippines 34 mn
Pakistan 10 mn
China 47 mn
Workers' Remittances
Strategic importance of remittances for banks
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More revenue More customers More sales
Transaction fee and forex
income
Customer acquisition
and retention Cross-selling opportunities
Workers' Remittances
Challenges in service delivery
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1. Proprietary network
3. Bilateral agreements
Total control over product, but costly to deploy in many countries
4. Franchisee of money transfer operator
Ready made product, but bound to operator’s offering and conditions
Specific offering, but costly to scale and maintain across multiple corridors
SWIFT’s Workers’ Remittances service solves these issues
2. Correspondent banking Widely used, but not tailored to provide consumer price and time transparency
Workers' Remittances
SWIFT Workers’ Remittances
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Business framework Technical framework
Contract template
for service conditions
Rulebook with market
practice
Directory with participant reference data
XML standards for instructions, status and return
FileAct messaging
service
Workers' Remittances
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Market Practice Rulebook
- Participants - Participants’ Agents
- Service levels (instant, urgent, non-urgent) - Two product groups (account, cash, v-wallet disbursement) - Transaction ID specification (sender defined)
- OUR (DEBT) charging default - FX guidelines - Reject/returns charging practices
- Definition of sorting, transmission etc. - Transmission timing relative to service level
- Gross bilateral settlement - Serial method recommended, but guidelines for Cover incl. - No restrictions on provider or currency choice
Participation
Products
Charging practice
Clearing
Settlement
Workers’ Remittances service architecture
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Rules and guidelines
FileAct store & forward ISO 20022
Sender Beneficiary Agents
Distribution network
Sending country
Distribution network
Receiving country
Participants Participants Agents
End-to-end service conditions
Workers' Remittances
Settlement Agent
cover payment
Reference data
…. Now mobile enabled!
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SMS or phone call “I paid $100. You can pick it up at XYZ
bank. Give 123 as reference”
• Mobile instruction • Mobile access to online banking
application
• SMS notification • Cash pick-up • Credit bank account • Store on mobile wallet
ISO20022 payment via Workers Remittance
Mobile phone numbers as account identifier or beneficiary identity verification
to authorize cash pay-out
Mobile notification and pay-out
Payment instruction (mobile or other channel)
SWIFT’s value proposition for mobile remittances
Service is mobile enabled
Driving industry standards
Support mobile instructed payment, mobile notifications and pay-out Mobile phone number can be used as account identifier or beneficiary identity verification to authorize cash pay-out.
Connecting mobile eco-systems
Enable Banks’ mobile payment/mobile banking service for WR Enable regulated Mobile Payments Service providers for WR
Promoting ISO 20022 for mobile payments. Active member of Mobey forum as Vice-chairman of the remote mobile payment workgroup.
Workers' Remittances 10
47 Participants and 18 Certified Banks (Oct-2010)
Workers' Remittances 11
Europe, Middle East and Africa (19)
Americas (19) Asia Pacific (9)
Certified live capability
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Benefits of SWIFT Workers’ Remittances
Compelling consumer experience
Commercially neutral
Easy to integrate
Easy to scale-up
• Product directory allows to give clear, up-front transparency on cost and execution time
• Supports any product: account-to-account, account-to-cash, mobile notification & payments, …
• No conditions on branding • No commercial exclusivity
• Uses ISO standards instead of proprietary formats • Integrates with existing payments applications • Re-uses existing clearing mechanisms
• Contract template • Service capability directory
Workers' Remittances
Case study: La Caixa
About La Caixa • Third bank in Spain, first in retail • 11 million customers • 5,200 branches, 8,000 ATMs
Workers’ Remittances business • 6 years of experience • 10% of customers are immigrant • 3 main corridors: Latin-American,
Morocco, Eastern Europe • 1.5 million remittances in 2008
Current situation • 14 countries, 25 partner banks • 3 channels: Internet, MT 103 and FileAct. • 12 solutions (formats, status info, returns…) • Each agreement: min. 6 months
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Benefits SWIFT Workers’ Remittances • Standardised definitions • Technical framework similar to SEPA
(ISO 20022 XML pacs) • Centralised information database: all
we need to know about counterparties • Complemented with Alliance Integrator
Using SWIFT’s service
Each new agreement -> 80% lower cost
Time to set-up new counterpart -> reduced from 6 to 2 months
Workers' Remittances
Case study: RUSSLAVBANK
About RUSSLAVBANK • Full service commercial bank • More than 500 Russian and foreign
correspondent banks • Acts as clearing bank for CONTACT
System of International Money Transfers and Payments
Current Challenges • Expand services to new markets
without increasing infrastructure costs
• Standard messaging formats that can easily be used for its remittances business and reduce manual intervention
• Solution that can be enhanced quickly as business evolves
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Benefits of SWIFT Workers’ Remittances • Fast time to market and stronger reach
thanks to interoperability of the service and scalability
• Expanded commercial opportunities to new product and service evolutions due to internationally recognized messaging standard (ISO 20022 XML)
• Reduced total cost of ownership by maintaining same infrastructure and having an increased automation of remittances workflows
• Faster return on investment by speeding bilateral contract negotiation with no additional internal platform investments
Workers' Remittances
Service Implementation
E-banking Call-desk Teller Customer ATM Mobile
Front office services
Back office services
Network services
Workers’ Remittances
FileAct
Messages ISO 20022
Workflow Market practices
Transaction initiation
15 15 Workers' Remittances
Linked to your multiple front-end
channels
Integrated within your IT and applications
infrastructure
Workers' Remittances 16
Getting started
• See Workers’ Remittances customer list
• Agree product offering - use contract template
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• Remittance application
• Generate ISO 20022 XML file
• Send/receive FileAct
• Integrate with SWIFTNet
• Define product conditions including eg FX
• Link front-office apps to payment apps
• Train staff
• Test with counterpart(s)
• Go live
• Find right contacts
• Facilitate meetings
• Testing / Certification • Integration project
mgmt & middleware • SWIFTReady providers
on swift.com • Training
• Application integration
• Project planning • On-boarding and
service roll-out
Workers' Remittances
SWIFT can support you
Contact partner banks
Implement application
Integrate in front-office
Test and roll-out
Join SWIFT
• Financial Institutions join SWIFT as SUPE member and get connected to SWIFTNet for FileAct
• Help in application process
• Find right connectivity pack for FileAct
About your project
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Current products & volumes Product offering:
# remittances/year:
Bank partners:
Main corridors (countries, partners, channels): 1: ………………………………………………. 2: ………………………………………………. 3: ……………………………………………….
Application vendors ………………………...……………………… ………………………...……………………… ………………………...………………………
Challenges Reach target retail groups Product features: cost, options, … Find new business partners Cost to set up new arrangements ……………….……………………………….
Future business Target corridors (countries, partners)
1. ……………………………………………… 2. ……………………………………………… 3. ………………………………………………
New product features 1. ……………………………………………... 2. ……………………………………………... 3. ………………………………………………
Workers' Remittances
More information?
• Your SWIFT contact – Americas: [email protected] – EMEA: [email protected] – Asia/Pacific: [email protected] – Generic e-mail: [email protected]
• swift.com
• www.swiftcommunity.net/SWIFTremit
19 Workers' Remittances
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Thank you