Home Remittance Main Presentation

BRANCH TRAINGING
PROGRAM
OMs, CSOs & TELLERS
Home Remittance Products Overview
Branch Functions, Role and Responsibilities
Muhammed Owais Muzaffar
AVP-1(Relationship Manager )
Home Remittance Department, Head Office
Home Remittance Training Program

What is Remittance?
 Remittance is a small payment sent across borders from one person to
another/family.
 In today’s common usage, it is the portion of an immigrant worker’s earnings sent
back to family members in his or her country of origin.
 As the scale of international migration has increased in recent years, remittances
have taken on greater significance:
 they connect families across borders,
 increase standards of living
 contribute to the growth of country economies.
INTRODUCTION

Importance of Remittance
 For Pakistan, inward remittances are the second largest source of
foreign exchange for the country after the export proceeds.
 Source of foreign Investment from savings by Non–Resident
Pakistanis (NRPs).
 Pakistan is in the top 10 countries to receive remittances with the
volume of more than $29.4 billion in FY2021
(Source: SBP Economic data)
 Remittances help raise the standard of living of the people
INTRODUCTION

Remittances Market Overview
and Business Scope

Global & Local Market Overview
 Remittances are playing significant role in the economy of many
countries and contribute as a key factor to generate foreign reserves
for the country and stable economy. As per the World bank estimates
the top five remittance recipient countries in the world are India,
China, Mexico, Philippines and Bangladesh respectively.
 Pakistan falls among the top 10 (ten) remittances recipient countries in
the world with the highest growth rate. Home remittances in Pakistan
is the largest source of foreign exchange reserves after the export
proceeds. Pakistanis living in Saudi Arabia is the major contributor of
remittance to Pakistan.
 As per the SBP/PRI (Pakistan Remittance Initiative) estimates the total
market size of remittances in Pakistan is over $29 billion. So there is
huge potential & opportunity and challenge for the banks to divert &
convert illegal remittances inflows to legal channel and mobilize
remittances through legal banking channels only. Attract customers by
offering fast, reliable and value added services and various attractive
savings products.

Scope of Business
Home Remittances is not only required for national economy as biggest
sources of Foreign Exchange but same is also source of service income for
the banks associated with limited operational risk specially in the period of
slow growth of economy and high credit risk situation in the country.
Commercial banks are serving the national cause by facilitating home
remittance services, it is a viable business for the banks. Commercial banks
are generating sizable service income by following avenues :
• Rebate Income from GOP/SBP
• FX Gain on FX Treasury Deals
• Float Income on average balances of Tie-ups current account or
advance funding
• Open new customers accounts
• Opportunity to increase deposit base

CHANNEL OF HOME REMITTANCES
 Banks
 Exchange Companies
 Post Offices
 Telecom & Franchise
 Digital Banking

 It is a national cause.
 Home Remittances are vital for our developing economy as it is the
second largest source of Foreign Exchange after export proceeds.
 It is a source of business for banks. SBP is providing a special
incentive of SR25/- per remittance to commercial banks in
Pakistan.
a. It is a source of service income for the bank associated with
no financial risk and limited operational risk, specially in
current period of slow growth of economy and high credit
risk situation in the country.
b. Further it provides Exchange Earnings, Float Income,
opportunity for low cost Deposits.
Why do we do it?

 Remittances is a very easy source of income for Bank and branches.
 SBP provides a rebate of 25 Saudi Riyal for each transaction
over $100 to the paying bank
 This revenue is shared with the agents/tie-ups as well.
 If the quality of service increases at the branch level so will increase the
inflow of transactions and hence the income of the bank and branches.
 Fee Income for Branches at SMBL - Cash Remittance/Payment
o Rs. 100 – Amanat Cash, Xpress Money
o Rs. 150 – Western Union
Why do we do it?

• Home Remittance
Strategy FY 2021
Objectives :
 Improve business by 20% transactions and volume.
 Keep our services fast, convenient, reliable and satisfy
customers needs.
 Keep our products and services compatible with the
latest technology leverage new products & services.
 Strategic alliance with 1 Link/ SBP National Remittance
Loyalty Program (NRLP)

Key Points to be focused to achieve Desired Objectives
 Provide quality service to customers in branches - Branches
 Open Accounts/Increase A/c holder base of Bank - Branches
 Broaden correspondent base. H.O.
 Use Effective Marketing Tools & Advertisement Campaign.
H.O./Branch
 Introduce New innovative products. H.O.

Remittances Products Overview

REMITTANCE PRODUCTS
 Western Union: a world renowned remittance company whose branches
and sub-agents located all over the world
 Amanat Cash: SMBL own products, under which a number of
agents and Money Service Business provider
Utilize services of our bank to send remittance
 XpressMoney: a remittance company whose branches and sub-agents,
(inactive) banks located all over the world

Modes Of Home Remittance Payments
Payment Modes:
• Cash Over Counter Payment
• A/c Credit/Transfers - Same Bank
• A/c Credit/Transfers - Other Banks
 Inter Bank Fund Transfer (IBFT)
up to Rs. 500,000
 Real Time Gross Settlement System (RTGS)
No Limit

Payment platforms
 Western Union
 Xpress Money
Payment Modes :
 Cash Remittance Collection from any SMBL, ABL branches (over 1500
locations) - Branch
 Transfer to any SMBL branch Account – H.O.
 Third Party Payment/ transfers through IBFT & RTGS – H.O.
 Amanat Cash through H-Plus system
Payment Modes :
 Cash over counter payment from any SMBL, ABL branches (over 1500
locations) - Branch
 Transfer to any SMBL branch Account – H.O.
 Third Party Payment/ transfers through IBFT & RTGS – H.O.

Types of Arrangements
 Multilateral Arrangements - anywhere model
 Summit Bank in association with Western Union and Xpress
Money, offers quick and convenient delivery of cash over the
Counter service, payment can easily be picked up in a matter of
moments through any agent/partner in Pakistan, No matter where
you are around the globe, you can transfer funds to your loved ones
instantly through Western Union and Xpress Money .
Note:
In lieu of above, Xpress Money service is temporary suspended.
 We shall share good news with you shortly, as our partner ''Xpress Money''
is reactivated globally.

Types of Arrangements
 Bilateral Arrangements :
 Summit Bank has its own Home Remittance product namely
AMANAT CASH to facilitate the non-resident Pakistanis to receive
money from Summit Bank as preferred channel for Home
Remittances. Summit Home Remittance Service provides
convenience and value addition to sender/receiver and motivates
them to increase remittances to Pakistan through our fast,
transparent, reliable, efficient and free banking services.

Amanat Cash Partners Global IDs
S.NO FOREIGN EXCHANGE LIST COUNTRY NAME PKR A/C NUMBER PIN NUMBER FORMAT
1 GCC EXCHANGE UAE 1-2-1-20311-714-142717 12 digits
2 ECONOMIC EXCHANGE CENTRE UAE 1-2-1-20311-714-142749 12 digits
3 AL ANSARI EXCHANGE UAE 1-2-1-20311-714-144340 9 digits
4 MULTINET TRUST EXCHANGE LLC UAE 1-2-1-20311-714-144884 7 digits
5 MALIK EXCHANGE UAE 1-2-57-20311-714-101424 13 digits (start with 63), ME 11 digits
NOTE: If 11 or 12 digits provided by the beneficiary ,
please add ME in the beginning e.g. ME11111111111. Do not add ME if start with 63 (13-14 digits)
6 XPRESS MONEY EXCHANGE World Wide 1-2-1-20311-714-140611 16 digits
7 WESTERN UNION World Wide 1-1-1-20555-714-000001 10 digits
8 PFG MONEY AUS 1-2-1-20311-714-146478 12 digits
9 ORIENT EXCHANGE COMPANY LLC UAE 1-2-1-20311-714-146577 12 digits

Summit Bank Home Remittance Services key Features are :
 State-of-the-art technology assisting in safest, fastest and
easiest money transfer services
 Third Party Bank Transfer Service – Summit Bank is the pioneer
in transferring home remittances straight to the beneficiary
account with any IBFT member bank through instant 1Link IBFT
services.
 Cash Over Counter Service - Country wide cash remittance collection
facility at more than 1400 payout locations all which includes Summit
Bank branches and selected branches of our sub-agent network such
as (For AMANAT CASH payments), Allied Bank Ltd.
 Summit Bank has established correspondent relationship base with
leading and renowned foreign remittance tie-ups across the world and
customers receive remittances instantly through Summit Amanat Cash
Services from all over the world

Summit Bank Home Remittance Services key Features are :
 Summit Bank has collaboration with Western Union
which enables Summit Bank to receive money from more
than 245 countries and territories with over 290,000
locations worldwide.
 SMS alerts to beneficiaries as payment confirmation.

Western Union, Xpress Money, Amanat Links
XM & WU are accessible through Internet,
URLs are as under:
 https://xpressmoney.biz
 https://wupos2lb.westernunion.com
Amanat Cash payout portal is accessible
through Intranet, URL is as under:
 http://10.2.249.2/intranet/
SMBL Recommended browser is “Mozilla
Firefox”

 Fee Income for Branches at SMBL - Cash Remittance/Payment
 Rs. 100 – Amanat Cash, Xpress Money, per transaction
 Rs. 150 – Western Union, per transaction
 Opportunity to increase branch deposits and A/c holder base.
 Opportunity to cross sell other products / services.
Saving products/Bancassurance etc.
 Monthly Incentive Scheme of Branches - Champion Category Branches.
 Monthly income Credits in branch GL account: Branch Code+40740-714-114
BRANCH BENEFITS

Branch Remote payment Support/ Facility by H.O.
Do Not Turndown Customer:
 If Western Union, Xpress Money or Amanat Cash system is not working,
network is down OR login IDs or Passwords are locked due to any reason
in any of SMBL branch, the payment can be pulled out through Home
Remittance Department. The request for the remote payment can be
placed through email to HRC Department, situated at Summit Tower.
 Payment receipt will be provided to the concern branch for cash payout.
 Email address:
To: homeremittance@summitbank.com.pk
 For H.O. Support or Complaint Resolution, Please call or Fax the details
on following:
 Direct Line: (021) 324684 30-32

If branch system is not working due to any reason, the Cash over
Counter payment can be made through Home Remittance
Department through email.
Please provide following details via email:
APIN number
Beneficiary name
Beneficiary Valid ID-CNIC/SNIC/ Passport
Expiry date of Valid ID- CNIC/ SNIC/Passport
Sender name
Amount Expected
Email: homeremittance@summitbank.com.pk
You can also call on following #:
Direct Lines: (021) 32468430-31-32
Remote Payment Procedure

Western Union Customer can collect his/her remittance via cash
over counter twice a week and 4 times in a month.
Payout Amount limitation - WU
Turn-Around Time
Turn-Around time of transaction processing for Home Remittance
Customers has to be between 5 to 10 minutes.
Maximum Payment Limit – Amanat Cash
Western Union Customer can collect his/her remittance via Summit
Bank cash over counter up to Rs. 800,000/= in a month.
Amanat Cash Customer can collect remittance via Summit Bank Cash
over counter two payments in a day accumulated sum is not more
than Rs 500,000.

Issues at Branches
 Low service quality in branches.
 Refusal of customers without H.O. support for remote
payment.
 Low interest for remittance business.
 Lack of knowledge about branch monthly and yearly
remittance targets.
 Low motivation and/or lack of interest/awareness about
branch monthly champion category incentive scheme.
 Low interest for customer retention by opening accounts
and maintain COC customer data base for follow ups and
retention.

Issues at Branches
 Unhelpful attitude of staff for customer in branches to provide
miscellaneous services such photocopying of CNIC etc.
 CSO & Tellers lack of product knowledge such as Amanat Cash
and its Global Partners & IDs/PIN digits.
 High turn over and movement of relevant staff (CSO &Tellers)
in branches.
 Lack of dedicated remittance staff availability in potential
branches.
 Customer divert to other banks due to slow system, network
down, connectivity issues and/or reset & lock IDs & Password.

Remittance Marketing Initiatives

Marketing Initiatives by H.O.
Marketing/Advertisement
Home Remittance advertisement on electronic & print media shall support
branches to grab new customers and shall create awareness about our new
product/services among the masses. Focused and cost effective ATL & BTL
marketing campaigns shall include :
 Advertisement/Post on Social Media, ATMs, Website, SMS
 Home Remittance TVC before Ramadan & Eid ul- Adha
 Giveaways during Ramadan
 Road Shows/Town Storming – Focus on potential branches
 Cable Media Campaigns in focused potential branches.
 Banners, Brochures and Window branding (Potential & other branches)
 Extended Branch Timings during Ramadan & Eid-ul-Adha

 SMS Marketing in English and Urdu
 Digital Media Marketing (Newspapers, Facebook, Twitter,
Linked In & Google)
 Co-branded electronic and print media campaign with
partners like Western Union, SM & others.
 Branch Window Branding – Home Remittance skin
 Western Union & Xpress Money Branch Sinage’s.
Marketing Initiatives by H.O.

Transaction Compliance
Filtration & Screening
And
Biometric or NADRA Verisys

In the absence of biometric verification, branch may ensure
that copy of requisite identification document has been
obtained, marked as 'original seen' by their staff and verified
through NADRA Verisys.
As per the SBP regulation on AML-CFT December 2019,
branches should conduct biometric verification on cash
payment of Rs.500,000, including where the transaction is
carried out in a single operation or in several transactions
that appear to be linked.
Biometric or NADRA Verisys
If beneficiary CNIC is expired, branch may process the
transaction on presentation of original NADRA token,

As per SBP requirement, sanction lists (OFAC/EU/UN/FIA Red
books/NACTA/PEP) are inbuilt in banking system.
Similarly Amanat Cash system is also interconnected with core
banking.
At the time of processing Home Remittance cash-over-counter
transactions, system automatically filter the beneficiary &
remitter Names through the sanction lists available in core banking
system.
If beneficiary/Remitter Name matches in any of the available list,
a message will appear that “beneficiary/ Remitter name is in AML
list”. The user should report the same to Compliance Division
email (complianceamlunit@summitbank.com.pk) and Home
Remittance Department email (homeremittance@summitbank.com.pk)
with the required details of beneficiary or remitter “Father Name/
Date of Birth/place of birth/Nationality/ID Number/ issuance and
expiry date” for further verification by compliance AML unit.
Transaction Filtration & Screening

If beneficiary/Remitter detail does not match with the detail in the
sanction list, compliance user will release the payment after proper
verification and confirm via email. Branch can execute transaction.
if transaction is deemed suspicious compliance Division will
immediately report STR (Suspicious Transaction Report) to the FMU
(Financial Monitoring Unit).
Transaction Filtration & Screening
Western Union NACTA Filtration
Before fetching the transactions details through wupos, branches are
advised to initially filter the beneficiary details through the NACTA
list which is available in cognos MIS portal, http://10.2.249.2/mis/
with the name Black list search NACTA - Criteria which are set for
screening purpose based on beneficiary name and CNIC/ID. if
beneficiary ID found in NACTA list, branch user should report the
same to Compliance Div. and Home Remittance Deprt. via email

Do not hesitate to report any unusual behavior and/or Transaction to
the Head Office (Home Remittance & Compliance Department)
before or after the transaction has been completed.
Suspicious Transaction Reporting
Information about transactions reported as suspicious must be kept
confidential customer must not be told that you are considering or
that you intend to file a suspicious transaction report.
Summit Bank encourages you to refuse any transaction that you are
not comfortable with. You suspect if it is related to money
laundering or terrorist financing, or is prohibited by Bank policy.

National Remittance Loyalty Program
(NRLP)

An agreement has been signed between 1-Link and NRLP
participating public sector entities to facilitate the overseas
Pakistanis to enhance inflow of foreign currency into the country.
The Economic Coordination Committee (ECC) of the Cabinet
has approved the National Remittance Loyalty Program
(NRLP) with a view to incentivize remitters to transfer funds
through formal channels thus further strengthening the
inflow of remittances.
Purpose

1. Customer downloads the APP and register for NRLP
(Andriod & iOS) (English & Urdu)
Project Overview
2. Connectivity with participating FIs for sharing remittance
data
3. Points awarded on Home Remittance transactions receive
through banking channels
4. Multiple redemption opportunities at Public Sector Entities
& Private Merchants

1. Remitters can register as Primary Users and Beneficiaries
as Secondary Users
Project Overview
2. Remitters will receive loyalty points against their remittances
as per the awarding criteria
3. A Remitter is allowed to add one Beneficiary relationship,
and transfer his/her points to the Beneficiary
4. PFIs will share Home Remittance transaction data on a
daily basis
5.The NRLP Points can be redeemed against services at NADRA,
FBR, PIA, Utility Stores, Passport, Overseas Pakistanis Foundation,
State Life Insurance Premium, and private entities/merchant.

1. Remitters can choose to manually receive points awarded
against remittance transactions through the NRLP Mobile
App
Features
2. Remitter can input Transaction Ref No., Remittance Amount
(in PKR), and the Transaction Date for the system to validate
3. NRLP system validates the input details and the identification
details of the remitter against the data available from PFIs
4. If the transaction has not been awarded points against
previously, the remitter will receive points in the Mobile App

The system will define loyalty tiers/levels for users
(remitters and beneficiaries). Following criteria for
maintenance of loyalty tiers is proposed by the PRI/SBP:
Features
Tier-Based Points Awarding Criteria introduced for different loyalty levels
Category Annual Remittance Amount*
(calendar year)
Awarding Ratio
(% of remittance
amount)
Green Up to USD 10,000/- 1%
Gold From USD 10,001 /–to USD 25,000/- 1.25%
Platinum More than USD 25,000/- 1.5%

Charges
Tier-Based Points Awarding Criteria introduced for different loyalty levels
Amount Charged to Frequency
Application Cost
Development Cost Rs.37.0 Million
Borne by the top 5
banks
One time cost
Recurring Charges
Monthly Operational
and Maintenance
Charges
PKR 3.35/-Mln*
Receiving PFIs, on
proportionate basis
w.r.t.no. of remittance
transactions
Monthly
Transactional Charges
Per remittance
transaction uploaded
in to the system
PKR 1.00 per
remittance transaction
Remittance receiving
PFIs
Through daily
settlement
SMS Cost On Actual basis PFIs Monthly

Loyalty Points
Remittance
Rs
Awarded
Rs.
NRLP
Points
Redemption
Rs.
(0.1 of NRLP
Points)
1,000 10 100 10
10,000 100 1,000 100
100,000 1,000 10,000 1,000
1,000,000 10,000 100,000 10,000
The remitters will be awarded PKR 10 against every PKR 1,000
remittance (1%). NRLP Point calculation formula: 100 NRLP
Point = PKR 10/-

Redemption transaction charges to be decided on a later
stage, once redemption partners will be on boarded
Redemption
The fee for redemption shall be charged from such
Redemption Partners/Merchants as per applicable
arrangement with Private Organization/Merchant and
Acquiring Bank

Question & Answer

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