LEVERAGING REMITTANCES FOR
ASSET BUILDING:
Product Evolution, Partnerships and
Challenges
REMITTANCES AND DEVELOPMENT:
THE PHILIPPINE PERSPECTIVE AND EXPERIENCE
Presentation of

Secretary Imelda M. Nicolas
Chairp...
The Philippines
ranks third globally
in terms of
remittances $24 billion
These remittances
constitute 8.5% of
the country’...
REMITTANCES TO THE PHILIPPINES, 1974-2012
HOW REMITTANCES ARE SPENT

FOOD – 95.4%

EDUCATION – 67%

SAVINGS – 39.4%

HEALTH – 54.9%

APPLIANCES – 25.9%

DEBT – 42.1...
“an inclusive financial system which provides
for the evolving needs of a diverse public.”
“Policymakers will need to focus on leveraging
remittances as a tool for economic development.
While remittances are priva...
Addressed the goal of
harnessing the potential of
overseas remittances for
poverty reduction and
consequently, local econo...
The ReDC is both an advisory
and policy recommending body
and a venue for regular
dialogues and feedback on
issues regardi...
COMMISSION ON FILIPINOS OVERSEAS
Citigold Center, 1345 Quirino Avenue corner Pres. Osmeña Highway, Paco,
Manila 1007, Phil...
Please use minimum font size 24.
PRODUCTOS RELACIONADOS CON
REMESAS
Educación
Financiera

Capital de
Negocios

Creación de
Empresas

Vivienda
Completa

Vac...
Producto Remesas Resultados:
Creación del vínculo con
los receptores de remesas
en las diferentes
comunidades y, con los
e...
“Leveraging Remittances for Asset
Building: Product
Evolution, Partnerships and
Challenges”
ASKI Greg Macapagal
Product Evolution
Creates value added services such as
1. MFI loan disbursements and repayments
2. Savings
3. Banking
4. A...
Partnerships
Network building with
1. Banks
2. Money Transfer Operators (MTO)
3. Cooperatives
4. Product suppliers
1.
2.
3.
4.
5.
6.
7.

Challenges
“Customers” are not willing to trust an
unfamiliar system.
Agents are located in city/tow...
1.
2.
3.

4.

Strategies
Ready market for remittance services.
Aligned loan product that can be a channel of
remittance se...
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
•...
Présentation de notre volet transfert d’argent
• Nos produits de transfert sont:
– Cash-to-cash (depuis 2005)
• Cash to ca...
Les partenariats: quelle est la meilleure
stratégie?
• Pamecas a signé des contrats avec 6 partenaires de transfert
d’arge...
Les partenariats: quelle est la meilleure
stratégie?
• Choisir un partenaire idéal:
– Accès à la plateforme et/ou Avoir un...
THANK YOU
Building savings and assets through remittances
Building savings and assets through remittances
Building savings and assets through remittances
Building savings and assets through remittances
Building savings and assets through remittances
Building savings and assets through remittances
Building savings and assets through remittances
Building savings and assets through remittances
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Transcript of "Building savings and assets through remittances"

  1. 1. LEVERAGING REMITTANCES FOR ASSET BUILDING: Product Evolution, Partnerships and Challenges
  2. 2. REMITTANCES AND DEVELOPMENT: THE PHILIPPINE PERSPECTIVE AND EXPERIENCE Presentation of Secretary Imelda M. Nicolas Chairperson, Commission on Filipinos Overseas
  3. 3. 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
  4. 4. REMITTANCES TO THE PHILIPPINES, 1974-2012
  5. 5. HOW REMITTANCES ARE SPENT FOOD – 95.4% EDUCATION – 67% SAVINGS – 39.4% HEALTH – 54.9% APPLIANCES – 25.9% DEBT – 42.1% INVESTMENTS –3.8% Source: BSP Consumer Expectations Survey, 2nd Quarter, 2013.
  6. 6. “an inclusive financial system which provides for the evolving needs of a diverse public.”
  7. 7. “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.”
  8. 8. 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
  9. 9. 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 nongovernmental organizations.
  10. 10. 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: info@cfo.gov.ph Website: www.cfo.gov.ph
  11. 11. Please use minimum font size 24.
  12. 12. PRODUCTOS RELACIONADOS CON REMESAS Educación Financiera Capital de Negocios Creación de Empresas Vivienda Completa Vacaciones y Escolaridad Migroseguros
  13. 13. 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.
  14. 14. “Leveraging Remittances for Asset Building: Product Evolution, Partnerships and Challenges” ASKI Greg Macapagal
  15. 15. Product Evolution Creates value added services such as 1. MFI loan disbursements and repayments 2. Savings 3. Banking 4. Airtime prepaid loading 5. Bills payment
  16. 16. Partnerships Network building with 1. Banks 2. Money Transfer Operators (MTO) 3. Cooperatives 4. Product suppliers
  17. 17. 1. 2. 3. 4. 5. 6. 7. Challenges “Customers” are not willing to trust an unfamiliar system. Agents are located in city/town proper. Regulatory issues. Competition Pricing Exclusivity clause of partner remittance company. Weak signal of telecommunication’s network on remote areas.
  18. 18. 1. 2. 3. 4. Strategies Ready market for remittance services. Aligned loan product that can be a channel of remittance services. Coordinated transactions with an entity who is allowed to do remittance. Established satellite offices to render program and services closer to communities.
  19. 19. L’UMPAMECAS et ses partenaires pour les envois de fonds: évolution et défis Adama Ba, Pamecas
  20. 20. 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 28
  21. 21. 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 29
  22. 22. 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 30
  23. 23. 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
  24. 24. THANK YOU
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