The UPU Postal Payment Services and financial inclusion Tunis, 22 and 23 October 2009 Serguei Nanba – Postal Financial Services Coordinator

Presentation of the Universal Postal Union Created in Bern in 1874 The International Bureau, the permanent secretariat of the UPU, is based in Bern An intergovernmental organization and a United Nations specialized agency The principal forum for cooperation between governments, Posts and other postal sector stakeholders

Created in Bern in 1874

The International Bureau, the permanent secretariat of the UPU, is based in Bern

An intergovernmental organization and a United Nations specialized agency

The principal forum for cooperation between governments, Posts and other postal sector stakeholders

The postal sector worldwide 657’000 post offices in 191 countries (500’000 in rural areas) In Sub-Saharan Africa, on average, 80% of the post offices are located outside the 3 biggest cities of the country, in areas where 80% of the population lives In rural areas of SSA, 6.45 times more post offices than outlets of the biggest private providers In Africa: 25’100 (only permanent post offices) More than 5 millions employees worldwide In Africa: 160 000 employees Around 80% of designated postal operators worldwide provide some sort of financial services In 2007: 1,15 billion money orders sent by Posts worldwide In Africa (44 countries): 57,9 millions money orders

657’000 post offices in 191 countries (500’000 in rural areas)

In Sub-Saharan Africa, on average, 80% of the post offices are located outside the 3 biggest cities of the country, in areas where 80% of the population lives

In rural areas of SSA, 6.45 times more post offices than outlets of the biggest private providers

In Africa: 25’100 (only permanent post offices)

More than 5 millions employees worldwide

In Africa: 160 000 employees

Around 80% of designated postal operators worldwide provide some sort of financial services

In 2007: 1,15 billion money orders sent by Posts worldwide

In Africa (44 countries): 57,9 millions money orders

Implementation of the Postal Payment Services Strategy 2009-2012 Expand and develop the UPU worldwide electronic payment network (WEPN) Develop: UPU Worldwide postal payment regulations (multilateral framework) UPU Clearing and Settlement system Communication policy Universal and collective brand Focus on migrants’ remittances corridors Associate electronic remittance services with postal account-based services through rural post offices to foster financial inclusion of the poor

Implementation of the Postal Payment

Services Strategy 2009-2012

Expand and develop the UPU worldwide electronic payment network (WEPN)

Develop:

UPU Worldwide postal payment regulations (multilateral framework)

UPU Clearing and Settlement system

Communication policy

Universal and collective brand

Focus on migrants’ remittances corridors

Associate electronic remittance services with postal account-based services through rural post offices to foster financial inclusion of the poor

UPU-IFAD project in West Africa Target : migrants and recipients of migrant remittances in rural areas of six West African countries: Benin, Burkina Faso, Mali, Mauritania, Niger, and Senegal Partners: IFAD, UPU, Le Groupe La Poste, France Main activities: Connection of around 300 rural post offices in 6 countries, extension of an initial UPU regional projet Set up of the communication infrastructure (call centres, direct connection) New technology, equipment, training Development of the IFS services Cash is available in rural post offices – secured transportation and management Promotion of the service Associate remittances with account-based services

Target : migrants and recipients of migrant remittances in rural areas of six West African countries: Benin, Burkina Faso, Mali, Mauritania, Niger, and Senegal

Partners: IFAD, UPU, Le Groupe La Poste, France

Main activities:

Connection of around 300 rural post offices in 6 countries, extension of an initial UPU regional projet

Set up of the communication infrastructure (call centres, direct connection)

New technology, equipment, training

Development of the IFS services

Cash is available in rural post offices – secured transportation and management

Promotion of the service

Associate remittances with account-based services

UPU-IFAD project in West Africa Benefits : Low-cost and quality service available in rural areas Reduction of competitors tariffs on various corridors Reinforcement of rural Posts for provision of universal service First step in financial inclusion process for rural poor

Benefits :

Low-cost and quality service available in rural areas

Reduction of competitors tariffs on various corridors

Reinforcement of rural Posts for provision of universal service

First step in financial inclusion process for rural poor

First results : IT, commercial and Operational Model updated on the basis of new UPU Regulations and regional conditions New equipment installed and tested 14 October 2009: connection of rural postal offices and opening of electronic remittances services Large contribution in cash and kind of African Designated Postal Operators

First results :

IT, commercial and Operational Model updated on the basis of new UPU Regulations and regional conditions

New equipment installed and tested

14 October 2009: connection of rural postal offices and opening of electronic remittances services

Large contribution in cash and kind of African Designated Postal Operators

UPU-IFAD African regional project Total number of inhabitants: 43 530 126 Number of inhabitance in rural areas: 28 742 470 Covering all of the territories of the six countries, including all rural zones

UPU-IFAD African regional project

Total number of inhabitants: 43 530 126

Number of inhabitance in rural areas: 28 742 470

Covering all of the territories of the six countries, including all rural zones

Products/services offered in post offices in different regions Domestic and international postal money order Pension payments Payment accounts Debit and credit cards Savings Credit Mutual funds Insurances Bill payments (Permanent post offices network, mobile post offices, Internet banking, ATM, etc.)

Products/services offered in post offices in different regions

Domestic and international postal money order

Pension payments

Payment accounts

Debit and credit cards

Savings

Credit

Mutual funds

Insurances

Bill payments

(Permanent post offices network, mobile post offices, Internet banking, ATM, etc.)

Kazakhstan Post Bank Social payments (pension, etc.) Bill payments Salary payments Lending Opening & management of accounts Others (currency excange, credit cards, investment products) Money orders 7% 24% 10% 10% 3,0% 1% 42% - “Banking” products account for >15 % - PFS products account for > 42% - Total number of postal accounts > 3 M (20% of population) Cash transportation 3%

Brazil: Evaluating Access 2005 Semi-deciles of GDP per capita Poorest Richest

Population: 180 M More than 40% of municipalities without banks in 2002 8.2 M newly banked people from 2002 to 2009 5,973 branches/PO Brazilian Postal Bank: the bank that gets where no other bank has been Strategy: first open in communities/municipalities without banks = Geographic financial inclusion

Population: 180 M

More than 40% of municipalities without banks in 2002

8.2 M newly banked people from 2002 to 2009

5,973 branches/PO

e-pension e-paiement e-banking e-finance e-bourse e-transfert e-mandat On-line Solutions E-sicav e-guichet e-douane e-Poste

Thank you for your attention Serguei Nanba Coordinator Postal Financial Services Tel: + 41 31 350 32 16 Fax: + 41 31 350 31 10 E-mail: serguei.nanba@upu.int