LEVERAGING REMITTANCES FOR ASSET BUILDING:
Product Evolution, Partnerships and Challenges
REMITTANCES AND DEVELOPMENT: THE PHILIPPINE PERSPECTIVE AND EXPERIENCE
Presentation of
Secretary Imelda M. Nicolas Chairperson, Commission on Filipinos Overseas
The Philippines ranks third globally
in terms of remittances -$24 billion
These remittances constitute 8.5% of the country’s GDP.
Sources: World Bank and Bangko Sentral ng Pilipinas
REMITTANCES TO THE PHILIPPINES, 1974-2012
FOOD – 95.4% EDUCATION – 67% HEALTH – 54.9% DEBT – 42.1%
SAVINGS – 39.4% APPLIANCES – 25.9% INVESTMENTS –3.8%
HOW REMITTANCES ARE SPENT
Source: BSP Consumer Expectations Survey, 2nd Quarter, 2013.
“an inclusive financial system which provides for the evolving needs of a diverse public.”
bring more
people into the
financial system
especially those
previously
unserved and
unbanked
Financial inclusion
involves delivery
of a wide range of
financial services
such as savings,
credit, insurance,
remittances and
payment services;
Delivery channels in a
truly inclusive financial
system are wide and
ubiquitous where both
bank and non-bank
based delivery
channels can combine
to reach the financially
excluded more
effectively.
“Policymakers will need to focus on leveraging remittances as a tool for economic development.
While remittances are private transfers, the government can ensure that the policy environment
is conducive to the use of remittances for investment in well-considered financial products, in productive
activities such as entrepreneurial undertaking as well as in better housing, education and healthcare for
remitters and their beneficiaries, improving the financial education of the overseas Filipinos
community and implementing measures to further promote the flow of remittances through the financial
system that would help catalyze the development role of remittances.”
Addressed the goal of harnessing the potential of overseas remittances for
poverty reduction and consequently, local economic
development
Supports policies that transform overseas remittances for
development, savings and investments, and build a viable
collective remittance fund
The ReDC is both an advisory and policy recommending body
and a venue for regular dialogues and feedback on
issues regarding remittances
Per 2012 GFMD, the only one of its kind in the world
Members include migrants’ associations, banks and remittance service providers, migration-related government agencies, multi-lateral
organizations like UNDP and the World Bank, the academe, and non-
governmental organizations.
COMMISSION ON FILIPINOS OVERSEAS
Citigold Center, 1345 Quirino Avenue corner Pres. Osmeña Highway, Paco, Manila 1007, Philippines Tel. nos. (632)552-4700 local 401; (632)561-8291 Fax no. (632)561-8332
E-mail: [email protected] Website:
www.cfo.gov.ph
Please use minimum font size 24.
Educación Financiera
Creación de Empresas
Vacaciones y Escolaridad
Migroseguros
Vivienda Completa
Capital de Negocios
PRODUCTOS RELACIONADOS CON REMESAS
Producto Remesas Resultados:
Creación del vínculo con los receptores de remesas
en las diferentes comunidades y, con los
emisores en EEUU y España.
Al 31 de Agosto del 2013 entrega de : 94,220
remesas por un monto de RD$1,392,748,355.00
(equivalentes a USD$32,540,849.42)
7,513 pólizas de Micro seguros vendidas a
receptores de remesas. En general se han vendido
19,547.
Mas de 1,208 beneficiarios de remesas capacitados en Educación
Financiera.
Mas de 100 beneficiarios de remesas realizaron el Programa de Creación de
Empresas.
“Leveraging Remittances for Asset Building: Product Evolution,
Partnerships and Challenges”
ASKI Greg Macapagal
Bank
Product EvolutionCreates value added services such as
1. MFI loan disbursements and repayments2. Savings3. Banking4. Airtime prepaid loading5. Bills payment
PartnershipsNetwork building with
1. Banks2. Money Transfer Operators (MTO)3. Cooperatives4. Product suppliers
Challenges1. “Customers” are not willing to trust an unfamiliar
system.2. Agents are located in city/town proper.3. Regulatory issues.4. Competition5. Pricing6. Exclusivity clause of partner remittance company.7. Weak signal of telecommunication’s network on
remote areas.
Strategies1. Ready market for remittance services.2. Aligned loan product that can be a channel of
remittance services.3. Coordinated transactions with an entity who is
allowed to do remittance.4. Established satellite offices to render program
and services closer to communities.
L’UMPAMECAS et ses partenaires pour les envois de fonds: évolution et défis
Adama Ba, Pamecas
Présentation de l'UMPAMECAS• Date de création : avril 1995 entre le gouvernement
sénégalais et le gouvernement canadien• Nombre de membres: 570 000 membres• Actif du réseau: FCFA 56 milliards (USD 110 millions)• Encours de crédit: FCFA 37 milliards (USD 73 millions)• Encours d’épargne: FCFA 30 milliards (USD 59 millions)• Nombre d’agences: 80 agences• Produits et services offerts: épargne, crédit, transfert d’argent
international et domestique, virement salaire et pension, assurance santé, finance islamique et gérance immobilière
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Présentation de notre volet transfert d’argent
• Nos produits de transfert sont:– Cash-to-cash (depuis 2005)
• Cash to cash 2012: USD 27 millions payés pour une commission perçue de USD 254 000
– Cash-to-compte (depuis 2009): 3,841 transactions USD 1,5 millions
• Les corridors les plus importants:
– Italie- Sénégal– Espagne – Sénégal– Gabon - Sénégal– Etats-Unis – Sénégal
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Les partenariats: quelle est la meilleure stratégie?• Pamecas a signé des contrats avec 6 partenaires de transfert
d’argent pour les envois de fonds internationaux:– Moneygram, Money Express, RIA, Moneytrans, Western
Union et Choice Money Transfert
• Deux modèles d’affaires cohabitent actuellement:– Un modèle d’affaires négocié directement avec les
banques ( cas Moneygram et Western Union)
– Un modèle d’affaires où ce sont les opérateurs de transfert qui ont négocié directement avec le réseau et nous ont mis en relation avec la banque
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Les partenariats: quelle est la meilleure stratégie?• Choisir un partenaire idéal:
– Accès à la plateforme et/ou Avoir un seul plateforme pour le volet transfert pour éviter d’ouvrir plusieurs plateformes à la fois
– Distinguer le cash-to-compte et cash-to-cash dès l’émission (tarification)
– Être prêt à développer un plan de communication conjoint
– Accepter de faire un suivi formel et régulier du partenariat
– Un système de reporting adapté à nos besoins
– Respect des engagements par les partenaires transfert 31
THANK YOU