The Case for Customer
Knowledge and
Transparency
October 2009
Proprietary and Confidential

How did we get here?
Coordination and Efficiency:
Transparency
Community
Targeted Products/Services
2

Today, Value Transfer involves many disparate
entities
Banks RSPs/MTOs
Infrastructure
Government
Other FSPs Informal Systems
Mobile Network Operators Technology Partners
NGOs
3

Connecting the dots – Helping to create an
efficient ecosystem
Tech Partners
Banks o Information for
RSPs/MTOs
Government decision-making
o Formalization and
overcoming last
Informal Systems
Other FSPs mile challenges
NGOs o Technology tools for
money and other
forms of value
o Role in population
assistance and
MNOs diaspora community
Infrastructure
building
4

Remittance inefficiencies exist on multiple levels
TRANSPARENCY
What would be the impact
of more money reaching
those to whom it is sent?
INFORMATION
Migrant
SECURITY Inefficiencies communities are
Informal trust disconnected and
networks have
Could be worth cannot share
inherent 75% to 250%+ information on
uncertainties of existing formal remittance prices &
values methods; erodes
market efficiency
CONTROL
Sender does not know how
remittance is being spent
5

Change is not automatic; in the case of Mexico,
government intervention and US-Mexico alliances
contributed to changing the marketplace
Directo a Mexico launches, operated jointly by
the US Federal Reserve and Banco de Mexico
6

Catalysts and interventions to drive the ecosystem
Benefits of/for: Consumers Businesses Public Sector
Ability to track beyond
Bringing down costs of Competitiveness draws in regulatory minimums to
Transparency
formal transfers more formal transfers better protect and
provide assistance
Cross-pollination – Insight into marketing to Communication for
Community
sharing of information diaspora groups improved lives/livelihood
Develop additional Allocate resources based
Access to targeted Innovate, creating best in
proving grounds, pilot on relevant issues and
products/services class offerings
sites needs
 Cost  Safety
 Price and feature
 Smart innovations  Broadening
Levers to trade-off
 Calculations of awareness/scope of
collaboration  Addressing true
contribution impact
needs
 Managing risk  Sustainability
7

Why build a value transfer knowledge portal?
“The most effective way of reducing prices in a corridor is to activate competition.”
-Dilip Ratha, World Bank, 2006
Benefits Challenges
• Diaspora ties – building Money
• Online / Offline divide
goodwill ambassadors
• Smaller MTOs
• Increasing remittance and • Fee structure
other transfers of value Airtime intricacies
• Government assistance role • Reluctance in sharing
• Modernization and • Difficulties in reaching
technological improvements decision-makers
Utilities
• Data and learnings about • Building consumer
diaspora behaviours awareness
• Foundation for more • Regulatory distinctions
Goods across geographies
efficient systems
8

Search functionality on a value transfer portal
can be set up to meet the language and other
needs of target audiences as relevant
Simple user interface for
input of search request;
results show sending and
receiving options as well as
the fee and foreign
exchange rate for each
service provider and cost to Not all migrants have
send the amount desired access to a credit card or
a bank account, thus the
results can show
providers that allow for
cash payments
Devised for use for more Some remittance receivers do
than money transfer – not have access to a bank
also airtime, bill payment, account or cannot physically go
other forms of value and pick up the money, thus the
results can show if a provider
allows for cash receipt or home
delivery for example
9

Kate Zilla-Bâ, COO
kzillaba@mondato.com
www.mondato.com