This Knowledge Paper makes an effort to elucidate the concept of remittances in the international context and is focused on the remittances sent by emigrants to their families back home, for domestic consumption and investment. The paper highlights the significance of International Remittances... to the global economy, details existing business models, and examines emerging trends as well as challenges faced by an industry which is to poised to play a bigger role in the globalization process.
Remittances, or money transferred by foreign workers to their home countries, have grown significantly in size and importance. In 2005, global remittances totaled over $232 billion, with developing countries receiving about two-thirds of that amount. The top three recipient countries were India, China, and Mexico, receiving around a quarter of global remittances. However, when viewed as a percentage of GDP, smaller, poorer countries tend to rely more heavily on remittances. Remittances have also become a more stable and important source of capital than foreign direct investment or official development assistance. Improving remittance processes through new technologies could help further economic development in receiving countries.
trend of remittance in Rajasthan.
i am sharing as my personal experience there didn't do any research from my side.
On the behalf of ten to twenty household women's interviews.
Remittances refer to sending money to remove an obligation or make a payment. There are different types including inland, foreign, inward, and outward remittances. Common modes of remittances are drafts, mail transfers, telegraphic transfers, SWIFT transfers, and electronic fund transfers. Banks must follow proper procedures to facilitate domestic and international remittances securely and in accordance with regulations.
An agent is a third party entity engaged by a financial institution to provide financial services on its behalf using the agent's premises. Agent banking allows customers to access services in a more familiar way than a traditional bank branch. It provides services like deposits, withdrawals, remittances, bill payments and fund transfers. Agent banking uses a branchless model to expand access in rural areas where bank branches may not be economical. It benefits customers, agents and banks. Regulations require agents to be qualified and banks to obtain approval to implement agent banking. Challenges include ensuring profitability and preventing fraud.
Digital banking is a multi-year journey that requires transforming how banks interact with customers in the digital age. It involves changes across five key areas: leadership, customer experience, information, operational model, and workforce. The transformation is driven by changes in customer behavior, technology innovation, and an increasingly competitive landscape that now includes technology companies and startups in addition to other banks. To succeed, banks must start with improving the customer experience and leverage new technologies to develop a deeper understanding of customers.
Student International Business Council (SIBC) - Bain & Company - Fall 2016
Recommended Western Union enhance digitization and establish physical partnerships in the international remittance market.
This document provides an overview of ATM reconciliation. It defines ATM reconciliation as monitoring all aspects of an ATM transaction from cash loading to dispensing to identify any failures. Daily reconciliation is needed to balance the ATM "till" like a human teller by comparing the ATM journal, cash levels, and banking application. It outlines the various parties involved in ATM transactions and the accounting entries for different transaction types. Risks associated with ATM operations like cash pilferage or mapping incorrect accounts are also discussed.
Remittances, or money transferred by foreign workers to their home countries, have grown significantly in size and importance. In 2005, global remittances totaled over $232 billion, with developing countries receiving about two-thirds of that amount. The top three recipient countries were India, China, and Mexico, receiving around a quarter of global remittances. However, when viewed as a percentage of GDP, smaller, poorer countries tend to rely more heavily on remittances. Remittances have also become a more stable and important source of capital than foreign direct investment or official development assistance. Improving remittance processes through new technologies could help further economic development in receiving countries.
trend of remittance in Rajasthan.
i am sharing as my personal experience there didn't do any research from my side.
On the behalf of ten to twenty household women's interviews.
Remittances refer to sending money to remove an obligation or make a payment. There are different types including inland, foreign, inward, and outward remittances. Common modes of remittances are drafts, mail transfers, telegraphic transfers, SWIFT transfers, and electronic fund transfers. Banks must follow proper procedures to facilitate domestic and international remittances securely and in accordance with regulations.
An agent is a third party entity engaged by a financial institution to provide financial services on its behalf using the agent's premises. Agent banking allows customers to access services in a more familiar way than a traditional bank branch. It provides services like deposits, withdrawals, remittances, bill payments and fund transfers. Agent banking uses a branchless model to expand access in rural areas where bank branches may not be economical. It benefits customers, agents and banks. Regulations require agents to be qualified and banks to obtain approval to implement agent banking. Challenges include ensuring profitability and preventing fraud.
Digital banking is a multi-year journey that requires transforming how banks interact with customers in the digital age. It involves changes across five key areas: leadership, customer experience, information, operational model, and workforce. The transformation is driven by changes in customer behavior, technology innovation, and an increasingly competitive landscape that now includes technology companies and startups in addition to other banks. To succeed, banks must start with improving the customer experience and leverage new technologies to develop a deeper understanding of customers.
Student International Business Council (SIBC) - Bain & Company - Fall 2016
Recommended Western Union enhance digitization and establish physical partnerships in the international remittance market.
This document provides an overview of ATM reconciliation. It defines ATM reconciliation as monitoring all aspects of an ATM transaction from cash loading to dispensing to identify any failures. Daily reconciliation is needed to balance the ATM "till" like a human teller by comparing the ATM journal, cash levels, and banking application. It outlines the various parties involved in ATM transactions and the accounting entries for different transaction types. Risks associated with ATM operations like cash pilferage or mapping incorrect accounts are also discussed.
The document discusses agent banking as a model for financial inclusion in Bangladesh. It provides background on financial exclusion, defines financial inclusion, and outlines the agent banking model. Agent banking allows banks to lower costs and improve access to services while earning more through serving more customers. The presentation notes some challenges of agent banking in Bangladesh like low transaction volumes, lack of awareness, and infrastructure issues, but emphasizes the advantages it could provide like reducing poverty and attracting businesses. It concludes that agent banking can be a new era for financial inclusion in Bangladesh and supports the country's standing as a leader in South Asia for ensuring access to financial services.
This document discusses digital banking. It was first incorporated in the United States and is governed by federal regulations. Digital banking allows customers to view accounts, make transfers, pay bills, and access other services through a bank's website or mobile app. Customers can access their accounts 24/7 from anywhere. While digital banking offers convenience, there are also security risks and customers may miss in-person relationships with their banks.
This document summarizes a presentation on mobile banking given to Michigan bankers. It discusses the evolution of customer banking channels and the rise of mobile banking. It covers trends like the growing popularity of smartphone apps over SMS/WAP access. The presentation addresses whether banks should adopt mobile banking and considerations like costs, security, and demographic analysis. It provides tips on preventive security measures and discusses relevant regulatory guidance. The closing thoughts encourage banks to offer mobile banking to remain competitive despite implementation costs and security unknowns.
This document provides an overview of card payment systems. It describes the simplified authorization flow when a customer makes a payment by credit or debit card, involving the merchant, acquirer/processor, payment brand, and issuer. It also discusses electronic data capture, the ISO 8583 financial transaction message format, magnetic stripe vs EMV chip cards, verification options, card not present transactions, card management systems, and the simplified settlement flow.
Bank of Baroda (BoB) is one of the largest public sector banks in India with over 5000 branches globally. It was founded in 1908 in Baroda, Gujarat by the Maharaja of Baroda. Over the years, BoB has expanded both within India and internationally. In 1969, it was nationalized along with 13 other major banks. Today, BoB offers a wide range of banking products and services to corporate and retail customers. It has received several awards recognizing its leadership and customer service. BoB has a strong presence both within India and globally across over 20 countries.
“Digital” is the new buzz word in the banking sector, with banks all around the globe hopping onto the digital bandwagon. Banks of all sizes are making sizeable investments in digital initiatives in order to maintain a competitive edge. Vijaya Bank shows us what are the benefits of the digital banking.
National Payment System Architecture
This document discusses India's national payment system architecture. It defines payment systems and describes various payment instruments and infrastructure components like transaction, clearing and settlement systems. It explains processes like cheque clearing and electronic funds transfer. The key objectives of the national payment system are establishing safe, secure, sound and efficient systems. Recent initiatives include expanding electronic payment coverage and introducing innovations like real-time gross settlement, cheque truncation and the national financial switch to improve efficiency.
Payments and transaction processing systems - Global and Indian OverviewAkshay Kaul
This document provides an overview of global and Indian payment and transaction processing systems. It discusses the global regulatory framework established by the Bank for International Settlements and the regulatory framework in India established by the Reserve Bank of India. It describes how banks transact with each other using real-time gross settlement systems like RTGS and net settlement systems like NEFT. It also outlines how customers transact through conventional and electronic modes like mobile banking. Specialized companies operating in various areas of the industry are discussed as well as the market share and critical success factors of different payment modes. Risks to payment systems are also addressed.
The document discusses India's payment systems. It outlines the key regulatory bodies that oversee payment systems in India. It then describes various paper-based and electronic payment methods in India such as cheques, NEFT, RTGS, IMPS, and prepaid payment systems. It also discusses the settlement system operator Clearing Corporation of India and features of the Cheque Truncation System. The document provides details on processing times, charges and limits for different payment methods in India. It concludes by noting some limitations of India's payment systems including the lack of standardized account numbering across banks.
Digitised Trade: connecting markets and supply chain financeMisys
This webinar presentation was hosted by both Misys and the ICC Academy. We explore the driving forces, challenges and opportunities for digitised trade. And The future of digital trade and supply chain finance.
Payment and Settlement Systems(SWIFT,NEFT and Securities Cycle)Savita Marwal
Here are the key steps in creating offerings as part of bringing offerings to market in the payment processing flow:
1. Customer offerings strategy and planning: Define the strategy including pricing, targets, volumes, features and services including payment functionalities.
2. Customer offerings policies and methodologies: Develop policies and methodologies to support the offerings strategy.
3. Customer offerings relationships and management: Manage relationships with relevant stakeholders as part of bringing the offerings to market.
4. Customer offerings performance management: Establish performance management processes to track outcomes of the offerings.
5. Customer offerings people management: Manage resources required to create and bring offerings to market.
6. Customer offerings design, build and run enablement:
This document discusses various electronic payment systems used in banking. It begins by defining banking and describing how banking services have expanded over time to include debit/credit cards, ATM services, online fund transfers. It then discusses core banking functions like accessing accounts from any location. Other sections cover virtual banking without physical branches, various payment systems like ATM cards, credit cards, debit cards and electronic fund transfers. Mobile banking and online shopping are also summarized. The document concludes by describing internet banking and its history and procedures.
Digital Banking vs. Branch Banking (Ashish Kumar)2K13A19
This document discusses the transition from branch banking to digital banking. It notes that banks are increasingly adopting digital business models to capture more market share. Digital banking is seen as cheaper, faster and more convenient than branch banking. However, branch banking provides benefits like security and personalized service. The document outlines strategies for ING VYSYA bank to expand its digital offerings, such as providing online advisory services, payments, and account management. It also discusses challenges like maintaining simplicity and security with digital financial services.
The document provides an overview of the complex Canadian payments system landscape, which involves a wide range of stakeholders. There is significant innovation and choice in payment methods for consumers and businesses. The regulatory environment is also complex, with multiple regulators and government bodies involved. Key trends include the declining use of cheques and growing electronic payments, as well as innovation centered around consumer payments.
Agent banking allows banks to provide limited banking services to underserved populations through engaged agents under an agency agreement. It involves agents providing services like cash deposits, withdrawals, utility bill payments, and local fund transfers on behalf of banks. The process involves branches contracting with agents who then provide services to customers. Benefits include increased access through more locations and flexible hours, while limitations are that agents cannot perform tasks like approving loans or dealing in foreign currency. In Bangladesh, 12 banks are licensed for agent banking and four have active operations, helping expand access to formal banking for the 62% of the population currently underserved.
At this year's Global Money Transfer Summit, our CEO Mike Laven talks international payments, up and coming markets and how and innovation companies are coming together with the larger players to bring a seamless cross border payment system to businesses and consumers.
Now send and receive money through easypaisa Money Transfer in an instant, secure and convenient manner. No long documentation no complicated procedures and no delays, transferring money through easypaisa is as simple 123. Find out the nearest easypaisa shop and send money anywhere anytime in Pakistan www.easypaisa.com.pk.
The document discusses agent banking as a model for financial inclusion in Bangladesh. It provides background on financial exclusion, defines financial inclusion, and outlines the agent banking model. Agent banking allows banks to lower costs and improve access to services while earning more through serving more customers. The presentation notes some challenges of agent banking in Bangladesh like low transaction volumes, lack of awareness, and infrastructure issues, but emphasizes the advantages it could provide like reducing poverty and attracting businesses. It concludes that agent banking can be a new era for financial inclusion in Bangladesh and supports the country's standing as a leader in South Asia for ensuring access to financial services.
This document discusses digital banking. It was first incorporated in the United States and is governed by federal regulations. Digital banking allows customers to view accounts, make transfers, pay bills, and access other services through a bank's website or mobile app. Customers can access their accounts 24/7 from anywhere. While digital banking offers convenience, there are also security risks and customers may miss in-person relationships with their banks.
This document summarizes a presentation on mobile banking given to Michigan bankers. It discusses the evolution of customer banking channels and the rise of mobile banking. It covers trends like the growing popularity of smartphone apps over SMS/WAP access. The presentation addresses whether banks should adopt mobile banking and considerations like costs, security, and demographic analysis. It provides tips on preventive security measures and discusses relevant regulatory guidance. The closing thoughts encourage banks to offer mobile banking to remain competitive despite implementation costs and security unknowns.
This document provides an overview of card payment systems. It describes the simplified authorization flow when a customer makes a payment by credit or debit card, involving the merchant, acquirer/processor, payment brand, and issuer. It also discusses electronic data capture, the ISO 8583 financial transaction message format, magnetic stripe vs EMV chip cards, verification options, card not present transactions, card management systems, and the simplified settlement flow.
Bank of Baroda (BoB) is one of the largest public sector banks in India with over 5000 branches globally. It was founded in 1908 in Baroda, Gujarat by the Maharaja of Baroda. Over the years, BoB has expanded both within India and internationally. In 1969, it was nationalized along with 13 other major banks. Today, BoB offers a wide range of banking products and services to corporate and retail customers. It has received several awards recognizing its leadership and customer service. BoB has a strong presence both within India and globally across over 20 countries.
“Digital” is the new buzz word in the banking sector, with banks all around the globe hopping onto the digital bandwagon. Banks of all sizes are making sizeable investments in digital initiatives in order to maintain a competitive edge. Vijaya Bank shows us what are the benefits of the digital banking.
National Payment System Architecture
This document discusses India's national payment system architecture. It defines payment systems and describes various payment instruments and infrastructure components like transaction, clearing and settlement systems. It explains processes like cheque clearing and electronic funds transfer. The key objectives of the national payment system are establishing safe, secure, sound and efficient systems. Recent initiatives include expanding electronic payment coverage and introducing innovations like real-time gross settlement, cheque truncation and the national financial switch to improve efficiency.
Payments and transaction processing systems - Global and Indian OverviewAkshay Kaul
This document provides an overview of global and Indian payment and transaction processing systems. It discusses the global regulatory framework established by the Bank for International Settlements and the regulatory framework in India established by the Reserve Bank of India. It describes how banks transact with each other using real-time gross settlement systems like RTGS and net settlement systems like NEFT. It also outlines how customers transact through conventional and electronic modes like mobile banking. Specialized companies operating in various areas of the industry are discussed as well as the market share and critical success factors of different payment modes. Risks to payment systems are also addressed.
The document discusses India's payment systems. It outlines the key regulatory bodies that oversee payment systems in India. It then describes various paper-based and electronic payment methods in India such as cheques, NEFT, RTGS, IMPS, and prepaid payment systems. It also discusses the settlement system operator Clearing Corporation of India and features of the Cheque Truncation System. The document provides details on processing times, charges and limits for different payment methods in India. It concludes by noting some limitations of India's payment systems including the lack of standardized account numbering across banks.
Digitised Trade: connecting markets and supply chain financeMisys
This webinar presentation was hosted by both Misys and the ICC Academy. We explore the driving forces, challenges and opportunities for digitised trade. And The future of digital trade and supply chain finance.
Payment and Settlement Systems(SWIFT,NEFT and Securities Cycle)Savita Marwal
Here are the key steps in creating offerings as part of bringing offerings to market in the payment processing flow:
1. Customer offerings strategy and planning: Define the strategy including pricing, targets, volumes, features and services including payment functionalities.
2. Customer offerings policies and methodologies: Develop policies and methodologies to support the offerings strategy.
3. Customer offerings relationships and management: Manage relationships with relevant stakeholders as part of bringing the offerings to market.
4. Customer offerings performance management: Establish performance management processes to track outcomes of the offerings.
5. Customer offerings people management: Manage resources required to create and bring offerings to market.
6. Customer offerings design, build and run enablement:
This document discusses various electronic payment systems used in banking. It begins by defining banking and describing how banking services have expanded over time to include debit/credit cards, ATM services, online fund transfers. It then discusses core banking functions like accessing accounts from any location. Other sections cover virtual banking without physical branches, various payment systems like ATM cards, credit cards, debit cards and electronic fund transfers. Mobile banking and online shopping are also summarized. The document concludes by describing internet banking and its history and procedures.
Digital Banking vs. Branch Banking (Ashish Kumar)2K13A19
This document discusses the transition from branch banking to digital banking. It notes that banks are increasingly adopting digital business models to capture more market share. Digital banking is seen as cheaper, faster and more convenient than branch banking. However, branch banking provides benefits like security and personalized service. The document outlines strategies for ING VYSYA bank to expand its digital offerings, such as providing online advisory services, payments, and account management. It also discusses challenges like maintaining simplicity and security with digital financial services.
The document provides an overview of the complex Canadian payments system landscape, which involves a wide range of stakeholders. There is significant innovation and choice in payment methods for consumers and businesses. The regulatory environment is also complex, with multiple regulators and government bodies involved. Key trends include the declining use of cheques and growing electronic payments, as well as innovation centered around consumer payments.
Agent banking allows banks to provide limited banking services to underserved populations through engaged agents under an agency agreement. It involves agents providing services like cash deposits, withdrawals, utility bill payments, and local fund transfers on behalf of banks. The process involves branches contracting with agents who then provide services to customers. Benefits include increased access through more locations and flexible hours, while limitations are that agents cannot perform tasks like approving loans or dealing in foreign currency. In Bangladesh, 12 banks are licensed for agent banking and four have active operations, helping expand access to formal banking for the 62% of the population currently underserved.
At this year's Global Money Transfer Summit, our CEO Mike Laven talks international payments, up and coming markets and how and innovation companies are coming together with the larger players to bring a seamless cross border payment system to businesses and consumers.
Now send and receive money through easypaisa Money Transfer in an instant, secure and convenient manner. No long documentation no complicated procedures and no delays, transferring money through easypaisa is as simple 123. Find out the nearest easypaisa shop and send money anywhere anytime in Pakistan www.easypaisa.com.pk.
International Remittance And Mobile BankingArief Gunawan
The document discusses international remittance and mobile banking. It outlines general principles for international remittance services including transparency, consumer protection, payment system infrastructure improvements, a sound legal framework, competitive market conditions, and appropriate governance. It also discusses mobile banking trends, mobile payments, challenges, and the benefits of increased access to financial services via mobile technology.
A focus on key trends in the Global Money Transfer industry including the emergence of "International Payment Specialists" as a distinct and fast growing industry segment attracting significant interest from strategic buyers and financial investors and the disruption of the traditional "Consumer Remittance Providers" by new, emerging / fast growing entrants leading with mobile and other technology-based solutions
Mobile money transfer (MMT) allows users to transfer money from one person to another through their mobile phones. It provides an instant, convenient and secure way to transfer funds. To use MMT, a user needs a bank account linked to their mobile number. They can then send funds to another user by entering their 10-digit phone number and 7-digit account identifier. In India, MMT is currently bank-led and requires registration with a participating bank. Major banks like HDFC, SBI and Axis have partnered with telecom companies like Vodafone, Airtel and Idea to offer mobile money services in India.
The document discusses remittances from the United States to other countries from 1990 to 2009. It finds that in 2009, migrants' remittances from the United States totaled about $48 billion, nearly 70% more than US development assistance. About $38 billion were personal transfers to households abroad, while $11 billion reflected compensation of short-term employees. No data is available on the regional destinations of remittances after 2003, but historically about two-thirds went to Western Hemisphere countries, one-quarter to Asia/Pacific, and the rest to Europe and Africa. Remittances can help recipient country economies but may also reduce incentives to work. Fees for remittances have declined in recent decades. Mexico receives
This document summarizes Robi CashPlus, a mobile money service in Bangladesh that aims to improve the lives of migrant families through remittances. The key points are:
1) Robi CashPlus allows migrant workers to easily send money back home through Robi's nationwide network, benefiting families who previously faced barriers like travel distances and bank operating hours.
2) The service forms partnerships to promote productive spending of remittances on agriculture through ACI Agribusiness and vocational skills training through Greenland Group.
3) By integrating remittances with financing, goods, and services, Robi CashPlus creates an ecosystem to multiply the economic impact of money sent home by migrant workers.
THE EFFECT OF REMITTANCES OF DIASPORA ON THE ECONOMY OF DEVELOPING COUNTRIES:...Faisal Rashid Majumder
The aim of this research is to investigate macro and micro economic determinants of remittances with respect to the Bangladesh. Therefore, the title of the Dissertation is “The Effect of Remittances of Diaspora on the Economy of Developing Countries: A Case Study on Bangladesh”. This research seeks to critically evaluate the remittances inflow and their role both in the economic development process and in the context of Bangladesh. This research sets out to understand, not only the migration and settlement patterns of Bangladeshis. It also analyses the nature of the remittances in the development process sent to Bangladesh by the first, second and third generation of the Bangladeshi Diaspora. The data had been collected through a literature review of previous researchers and questionnaire interview with relevant participants. The main results of the research show that people migrate for different purposes, factors and motivations. Some of them move around to settle permanently in the country of destination, while others may cross borders only to reside temporarily in order to look for a job. This study shows migrants’ contribution to the economic development both of their home, their host countries. An important result emphasises how from Bangladesh migrate to overseas for better job opportunities, high wage rates and standard living conditions. Moreover, it was found how remittances are used for repayment of loans, household consumptions and investment in small enterprises. This research found that, remittances which are sent through informal channels are being unrecorded and do not participate in national economy. The methodology adopted in the current research could be improved, in future years, in order to obtain many more empirical results and also, in order to answer to other issues not yet solved.
April 2014, our CEO Michael Laven was asked to present at the DigitalTech conference in London. This is an overview to the Currency Cloud proposition, segments, technology and management team. To learn more, visit www.thecurrencycloud.com
Financial Service Firms & The Currency CloudCurrency Cloud
The Currency Cloud provides a cross-border payments platform that allows customers to easily receive, convert, and send money around the world quickly, securely, and transparently. It works with financial firms in two ways: developing new international payments products, and extending or improving existing cross-border payment capabilities. The Currency Cloud handles the infrastructure complexities, allowing firms to focus on customers. It offers competitive prices through wholesale buying power and bypassing traditional payment networks' fees.
Global Money Transfer (Remittances) Market Report: 2013 Edition – New Report ...Koncept Analytics
The report on global remittance market contains a comprehensive analysis of the global remittance industry along with the study of the regional markets including India, China, Mexico and Philippines. For more mail vikas@konceptanalytics.com
Are you in the money transfer business? We at RemitONE have the complete money transfer solution for you: proven & compliant technology platforms, assistance with license & regulation and instant access to all the continents.
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RemitONE - Empowering Remittance
Foreign Remittances and their Impact on the Economy of PakistanMuhammad Umair
This document discusses foreign remittances to Pakistan from 1947-2014. It notes that remittances totaled over $500 billion worldwide in 2012, with Pakistan receiving $14 billion, and provides statistics on remittance amounts over time. Remittances have significantly impacted Pakistan's economy, helping to reduce its trade and budget deficits while boosting consumption, investment, and GDP. However, over-reliance on temporary remittances is not a sustainable economic model for Pakistan.
Remittances refer to money sent by foreign workers to individuals in their home country. In 2013, global remittances totaled over $500 billion USD. India is the largest recipient of remittances, receiving an estimated $70.4 billion USD in 2014. Remittances make up a significant portion of many developing countries' GDPs, with some countries relying on remittances for over 30% of their GDP. Russia's economic crisis poses a threat as countries that rely heavily on remittances from Russian workers could lose over $10 billion collectively in 2015.
Presentation on remittance trend of ibblSakiba Ahsan
The document discusses remittance trends in Bangladesh, with a focus on IBBL bank. It notes that Bangladesh ranks 5th globally in remittance receipts. IBBL handles 26% of the country's total remittances. The presentation analyzes factors driving remittance growth, IBBL's remittance services and market share, and makes recommendations to further improve remittance services especially at IBBL.
The document summarizes a presentation about the impact of Dodd-Frank regulations on international payments and how credit unions can address these changes. It discusses:
- New disclosure requirements for international payments under Dodd-Frank that will take effect in October 2013.
- How the Federal Reserve's FedGlobal international ACH system can help credit unions provide lower cost international payments to members while meeting regulatory requirements.
- Benefits of using FedGlobal ACH payments include no beneficiary deductions, lower costs, consistent delivery times, and accessibility for institutions of all sizes.
- Resources available to help credit unions understand and comply with new international payment rules.
The document discusses payment system infrastructure for international remittance services. It focuses on improving infrastructure to increase efficiency of remittance services, per the CPSS-World Bank General Principles. There is an asymmetry between well-developed payment systems in major sending countries versus less developed systems in many receiving countries. The document recommends reforms to facilitate development of cross-border payment mechanisms and enable efficient, secure remittance payments between countries.
The document presents a business case for a company to enter the global remittance market. It analyzes the size and growth of the global and regional remittance markets, with a focus on the UAE market. The largest remittance corridors from the UAE are to India, the Philippines, Nepal, Sri Lanka, and Pakistan due to the large populations of immigrants in the UAE from these countries who send money home. Entering the remittance market could be profitable given the large and growing market sizes.
This document summarizes a case study on global remittances. It defines remittances as international transfers of funds sent by migrant workers to family members in their home countries. In 2009, $414 billion was remitted globally, with $316 billion going to developing countries. Remittances are recorded in the current account of the balance of payments framework as they are transfers rather than direct investments. Top remitting countries include the US, Saudi Arabia, and Germany, while top receiving countries are India, China, Mexico, and the Philippines. Remittances represent a significant portion of GDP for smaller and developing countries. The cost of remittances is intensely scrutinized due to its increase over time and potential for money laund
Mobile Money Transfer : International Remittance Considerations for Mobile Ne...Andrew Ariaratnam
This document discusses considerations for mobile network operators seeking to offer international remittance services. It covers the market opportunity for international remittances, the key stakeholders that would be involved including customers, MNOs, money transfer operators, and regulators. It then discusses important technical, legal, commercial and operational considerations for MNOs including regulatory compliance, foreign exchange, service design choices around partnerships with money transfer operators, and enhanced customer due diligence. The document aims to provide guidance to help MNOs successfully participate in the international remittance business.
International remittances the next big thing in mobile payments sep-2012Peerasak C.
The document discusses the potential for mobile payments to play a larger role in international remittances, which totaled over $483 billion in 2011. While the size of the market is attractive, mobile payments have so far played a modest role due to a lack of market concentration across many corridors, security concerns around money laundering, and established alternatives. Barriers include the need to negotiate regulations between many different countries and concerns that criminal networks may exploit mobile payment systems.
What is Remittance Transfer and How Does it Work to Empower Global Connection...Pay10
In today's interconnected world, where families and communities are scattered across different countries,
remittance has emerged as a lifeline, fostering connections, and fueling economic growth. Remittance is money transferred by migrant workers to their people living in their home countries, which plays a
pivotal role in supporting the well-being of millions of individuals and shaping the economies of both sending and receiving nations.
FOR MORE INFO:- https://www.pay10.com/blog-what-is-remittance-transfer-&-how-does-it-work.php
This document provides definitions and explanations of key terms related to international banking and payments systems, including: correspondent banking, NOSTRO and VOSTRO accounts, SWIFT, CHIPS, CHAPS, FEDWIRE, and letters of credit. It describes how correspondent banking works and how NOSTRO and VOSTRO accounts are used in foreign exchange transactions. It also summarizes the purpose and operations of payment systems like SWIFT, CHIPS, CHAPS, and FEDWIRE which facilitate international funds transfers and settlements.
Money market pdf that will help you understand further its definition, importance, classification, structure and examples. There are a lot of examples here and it is for everyone that needs to know about money market.
This document discusses opportunities in the global remittance market, specifically regarding unbanked immigrant populations. It notes that over $500 billion is sent globally in remittances annually, with the majority going to families in developing countries. Prepaid debit cards linked to mobile phones show promise as a lower-cost remittance solution that could also help connect immigrants and families to the formal banking sector. Such mobile-enabled cards allow instant international money transfers at a fraction of traditional fees and provide a gateway to additional financial services. Facilitating banking access could shift some business from money transfer companies and support greater financial inclusion and economic development.
This document proposes a mobile money transfer system for Bangladesh. It notes that many Bangladeshis who work abroad send remittances home through informal channels to avoid high fees and delays with the banking system. The proposed system would allow people to transfer money within Bangladesh via SMS. Senders would give cash plus a small fee to an authorized transfer center, and recipients would receive a text with a PIN they can redeem for cash from their mobile provider. The system aims to make transfers more accessible, timely, affordable and provide delivery confirmation for those dependent on remittances. It could help expand financial access and services to underserved rural areas via ubiquitous mobile networks.
HPGD JA22 0245 - Instruments in foreign trade.docxaMITPARAB23
This document provides an overview and summary of instruments used in foreign trade. It discusses various topics like letters of credit, methods of payment in foreign trade including cash-in-advance, acknowledgements, executive summary, introduction and key determinants of foreign payments. The summary focuses on letters of credit as one of the most secure payment instruments for foreign traders, where the issuing bank authorizes payment to the exporter if terms and conditions are met.
This document provides an overview of the fundamentals of electronic funds transfers and the key players and systems involved. It discusses how funds transfers work between customers of the same institution, as well as more complex cross-border transfers that require multiple financial institutions. The major electronic funds transfer systems used are Fedwire, CHIPS, and SWIFT, which facilitate the transmission of instructions and settlement of funds both domestically and internationally. Financial institutions often use these various systems together to complete a single funds transfer transaction.
International Transportation and Trade Part 1 4.9.2024.pptxSheldon Byron
This document discusses different methods of international payment for trade transactions. It describes bank transfers/remittances as the most common and simplest method, where the buyer instructs their bank to transfer funds to the seller's bank. Bank transfers rely on the open account terms where goods are shipped in advance of payment. The document also outlines other payment methods like letters of credit, collections, and checks, and notes banks' roles and costs associated with different methods. It emphasizes the importance of including correct SWIFT/BIC codes to ensure accurate funds transfers between banks.
The document discusses the key participants and processes involved in securities clearing, settlement, and custody in Europe. It describes the roles of institutional investors, central banks, broker/dealers, custodians, local agents, clearinghouses, central securities depositories, and international central securities depositories. It then summarizes the settlement value chain and processes for domestic equity, cross-border equity, and eurobond transactions. Clearing involves calculating obligations, settlement is the exchange of securities for payment, and custody involves safekeeping of assets. Cross-border transactions typically involve more intermediaries and incur additional costs compared to domestic transactions.
The document proposes modeling the global financial crisis using a supply chain management approach. It outlines a four-layer model to show flows between countries, industries, firms, and customer segments. The model would explore flows of obligations and commitments in addition to goods, funds, and information. This would help analyze how vulnerabilities spread from the subprime mortgage crisis to the broader financial system and global economy.
Correspondent banking allows banks to serve customers in foreign markets where they do not have a physical presence. Through a correspondent banking relationship, banks provide services like money transfers, foreign exchange, and trade finance for each other. Both banks maintain balances in each other's accounts. Nostro and Vostro accounts refer to a bank's foreign currency accounts at banks in other countries that facilitate international transactions. SWIFT, CHIPS, CHAPS, and Fedwire are important electronic funds transfer systems that allow for fast and secure international money transfers between banks.
Remittances can be defined as the transfer of funds, usually done through a banking system. There are several ways to remit funds in Malaysia, including cashier's orders, demand drafts, telegraphic transfers, and mail transfers. Cashier's orders are like bankers' checks and are drawn on and payable at the issuing bank branch. Demand drafts can be used to remit funds domestically or internationally to different locations. Telegraphic transfers electronically transfer funds using communication systems, while mail transfers use physical mail.
M O N Y F O N 1 22 2009 Presentation Colombiaralcalde
The document discusses the evolution of mobile money transfers and the potential trillion dollar market it represents by 2012. It outlines how mobile phones now outnumber traditional banking infrastructure and can provide financial services to the billions of people currently unbanked. Specifically, it proposes a mobile wallet system to enable peer-to-peer money transfers both domestically and internationally using just a mobile phone. Colombia is presented as a potential country example given its large expatriate population and remittance-based economy that could benefit from a cashless, mobile-based financial system.
The document discusses the evolution of mobile money transfers and how they could reach $1 trillion by 2012. It outlines how mobile phones now outnumber ATMs and most people in the world do not use formal banking. Mobile wallets allow people to access banking services remotely including deposits, withdrawals, payments and money transfers. This could expand financial inclusion to billions of underserved people and facilitate billions in remittances in a safer, lower-cost way compared to traditional cash-based methods. Haiti is given as an example country that could particularly benefit since it relies heavily on expatriate remittances but has a small formal banking sector currently.
Finacle Webinar – Innovation in Retail Banking 2013Infosys Finacle
Finacle from Infosys and Efma presented the key findings of their 5th annual report — ‘Innovation in retail banking’ study, at a webinar conduced on 22nd Oct’2013. The study, based on a global survey of banks and interviews with senior bankers, investigates how banks can overcome barriers to innovation and improve their innovation capabilities, as well as banking trends
Finacle from Infosys discusses top 13 Banking Trends for 2013. Banking Industry is undergoing major transformation in it's IT Technology infrastructure to give the best to customers. The analysis also includes real time data to understand the changing requirements, expectations and need of the hour.
Finacle - Bank Customer Service: Click or Dial versus Branch BankingInfosys Finacle
Finacle paper on bank customer service analyses important factors that impact the adoption of technology on the banking ecosystem and how the effective balancing of the human factor against technology adoption can contribute to a fuller realization of banks goals.
Finacle paper on secure coding practices gives an insight into application coding security and highlights how comprehensive approach in security is need to not only secure code but also web servers and databases.
Finacle Digital Commerce solution leverages the power of digital money to unlock new revenue streams, extend distribution reach, and foster customer loyalty for financial institutions, telecom service providers, and retailers.
Finacle Thought Paper - Digital Wallet Success StrategyInfosys Finacle
Finacle thought paper discusses how digital wallet might replace credit cards and cash in near future and list important must have strategies for digital wallet service providers to grow.
Finacle - Agency Banking: New Frontiers In Financial InclusionInfosys Finacle
Finacle thought paper identifies agency banking as a new frontier in financial inclusion. It highlights the important features and benefits of banks emerging with non-financial institutions in order to drive business growth.
Thought Paper: Overview of Banking ApplicationsInfosys Finacle
Card based transactions account for barely 1% of all non-cash transactions by value,in India.Security concerns rank high on the list of barriers to card adoption,not just in this country,but also in those with much higher penetration.
Perspective- Multi Channel Banking: A Five Point Strategy Infosys Finacle
The last two decades have witnessed a paradigm shift in the way people bank. While the shift from branches to ATM based cash withdrawals and from there on to internet banking was slow, it has been a different story in the case of mobile banking. The growth in adoption of mobile banking over the last three years has been tremendous. Many banks have rolled out internet banking, mobile banking, call centers, ATM based transactions and video banking. But, have banks moved from multiple channels to true multi-channel banking with seamless cross channel experiences?
Here we explore a five point strategy that would empower banks and financial institutions to define a robust multi-channel offering.
Thought Paper:Four Strategies to Build the Smarter BankInfosys Finacle
Robert Kiyosaki, American investor and author (of Rich Dad Poor Dad fame), hits the nail on the head when he says, “You have to be smart. The easy days are over.”
As consumers go about trying to manage their money, there is an opportunity for banks to show them that they’re not alone – by being the ideal financial partner that listens, understands needs, shows respect, acts with integrity, serves with a purpose and exceeds expectations through its products, services and financial guidance.
In other words, by becoming a smarter bank.
Perspective: The rise and rise of emerging market banksInfosys Finacle
www.infosys.com/finacle
The emerging market banks which were plagued by excess regulation and inefficiency a few decades back have finally come into their own and are here to stay.
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks Infosys Finacle
This document discusses the need for banks to take a holistic approach to managing reputation risk. Currently, most banks silo each type of risk (e.g. credit, market, operational) without considering how they interconnect and impact reputation. The document advocates looking beyond individual risk departments to foster a culture where all employees understand how their actions can affect reputation risk. It also suggests learning from other industries' reputation risk practices and using new technologies like analytics and social media monitoring to proactively manage this critical intangible asset.
Perspective: Auditing norms for pki based applicationsInfosys Finacle
This document discusses auditing norms for PKI-based applications. It begins by describing the organization structure of PKI systems, which includes the Controller of Certifying Authority (CCA), Certifying Authorities (CAs), and Registration Authorities (RAs). It then explains that auditing PKI applications is important to ensure they are functioning properly. The challenges of auditing include certificates having a limited validity and the inability to audit external interactions. It provides recommendations for overcoming these challenges such as using secondary servers and accounting for variations in encryption algorithms. The document concludes by outlining specific considerations for auditing the PKI structure and applications.
Mobile Banking – A Transformation of Traditional BankingInfosys Finacle
www.infosys.com/finacle
How comfortable are we with Mobile Banking? Not very much, it seems. Even today, most of us who use mobile banking do so merely to check account information, transfer funds or pay bills. How many of us are aware of mobile technologies like Near Field Communication (NFC) and Remote Deposit Capture (RDC), which have evolved in response to customers’ need for a mechanism to make quick in-store/ transit purchases and check deposits without visiting a branch or an Internet banking site?
http://www.infosys.com/finacle
Mobile banking has often been perceived
either as an extension of internet banking or
as an isolated channel, which can help banks
in minimizing costs and generating better
revenue streams. One of the major reasons
cited for the success of mobile banking is the
omnipresent nature of the channel, which sets
it apart from all the traditional ones. This
differentiator can drive revenues not only from
the mobile perspective but also in conjugation
with other channels. Today, banks need to
carefully study how the mobile can fit into the
overall multi-channel framework in order to truly
leverage the benefits associated with it.
This document discusses how social media is changing the banking industry and how banks can leverage social media. It provides perspectives from banking executives on how social media can drive innovation through service, product, and process innovation. Social media allows banks to improve customer service, generate leads, deepen customer relationships, and differentiate from competitors. Banks need to listen to customers on social media, engage in conversations, and join discussions in online communities to benefit. Executives share how their banks are learning from early social media experiences and adapting their strategies to be more active and responsive online. Web listening tools and private online communities are presented as ways for banks to gain insights from customers.
This document summarizes a webinar about how technology is inspiring bank branch design. The webinar featured presentations from executives at Royal Bank of Canada and Allen International discussing their experiences redesigning bank branches using new technologies. RBC redesigned their branches to be more open and focused on customer advice, using technologies like Microsoft Surface tables. Allen International discussed projects redesigning branches for other banks to enhance customer experience.
Agility in the context of banking doesn’t mean just speed in execution; it also means that the bank is nimble and flexible. Agility helps the bank to win a marathon, as opposed to a hundred meter dash.
The banking system in the Philippines is made up of universal and commercial banks, thrift banks, and rural and cooperative banks. The country's economy grew steadily over the past 20 years but challenges remain around reducing poverty and achieving development goals. Recent elections saw Benigno Aquino III elected president. Emerging areas of focus for banks include microfinance, bancassurance, mobile banking, and wealth management as the population and economy modernize. Technology is an important enabler for reaching more customers, especially in rural areas.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
Monthly Market Risk Update: June 2024 [SlideShare]Commonwealth
Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
Discovering Delhi - India's Cultural Capital.pptxcosmo-soil
Delhi, the heartbeat of India, offers a rich blend of history, culture, and modernity. From iconic landmarks like the Red Fort to bustling commercial hubs and vibrant culinary scenes, Delhi's real estate landscape is dynamic and diverse. Discover the essence of India's capital, where tradition meets innovation.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
How to Identify the Best Crypto to Buy Now in 2024.pdfKezex (KZX)
To identify the best crypto to buy in 2024, analyze market trends, assess the project's fundamentals, review the development team and community, monitor adoption rates, and evaluate risk tolerance. Stay updated with news, regulatory changes, and expert opinions to make informed decisions.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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2. “Remittance is the act of transmitting money to a Migrant-receiving country:
distant location to fulfill an obligation”
• Availability of employment
This Knowledge Paper makes an effort to
elucidate the concept of remittances in the • Friendly migration policies
international context and is focused on the • Shortage of skilled resources
remittances sent by emigrants to their families • Financial liberalization
back home, for domestic consumption and
investment. The paper highlights the significance • Abundance of natural resources
of International Remittances to the global
A few examples of such corridors (sender
economy, details existing business models, and
country-receiving country) are Mexico-US,
examines emerging trends as well as challenges
South Asia-UAE and India-US.
faced by an industry which is to poised to play a
bigger role in the globalization process.
Impact on Global Economy
Remittances Overview
This section highlights the magnitude and impact
In this globalizing world, migration of people of increased migration on the world economy.
from one country to another for employment
opportunities has become a common The World Bank estimates that remittances
phenomenon. Dominant migration corridors have in 2009 totaled $420 billion - out of which
been formed between various countries/regions. $317 billion went to developing countries - and
This is primarily due to the socio-economic involved some 192 million migrants or 3.0% of
conditions prevailing in the migrants’ countries the world population.
of origin and destination. A few examples:
Figures 1 and 2 respectively depict the remittances
Migrant-sending country: of top remittance sending and receiving countries
• Lack of job opportunity for 3 consecutive years.
• Lower wage rates
Figure 3 expresses the quantum of this incoming
• Social insecurity money as a percentage of GDP thereby indicating
• Political instability its significance to the destination country’s overall
• Extreme geographical conditions development. (Source: World Bank website)
Figure 1 Top Remittance-Sending Countries (figures in US $ million)
International Remittances
3. Figure 2 Top Remittance-Receiving Countries (figures in US $ million)
Figure 3 Remittances as a Percentage of GDP
Operating Models in the Remittance Business banks globally, through which remittance
transactions are routed
An International Remittance business may follow
the conventional banking model or any of the Figure 4 illustrates the Nostro-based setup,
non-banking models. wherein the Beneficiary Bank has an account
with the Correspondent Bank, while Figure 5
Conventional Banking Model shows the generic process involved in a remittance
In this model, an end-to-end remittance transaction transaction based on a Nostro account model.
involves the following parties:
• Remitter’s Bank - the bank where the
remitter has an account that is debited for
transferring money to the beneficiary
• Beneficiary’s Bank - the bank where
the beneficiary of the remittance has an
account that is credited for the remittance
money received
• Correspondent Bank (only in cases where
the above-mentioned entities do not have
a direct business tie-up) - an intermediary
bank which has associated with various Figure 4 Nostro-based setup
International Remittances
4. Non-Banking Channels
Non-banking players play a vital role in the
remittance space and have a larger share in the
Global Remittance business than conventional
banks. These entities operate in various forms:
Money Transfer Operators
MTOs (Money transfer Operators) like Western
Union and Money Gram have a network of
agents across the globe and serve as non-bank
remittance channels.
The remitter can visit an MTO outlet and pay cash
Figure 5 Remittance Transaction Process in a in foreign currency to send money to any part of
Nostro-based Setup
the globe where the MTO’s agent is present. The
Modes of Remittance receiver can visit the MTO agent at his location
and collect the money in local currency.
There are various Origination Modes, which are
Figure 6 depicts the process for an International
used by the remitter to transfer money.
Remittance transaction effected through an MTO.
The remitter can issue a remittance request to
his bank either
a. by visiting the branch and furnishing a
Remittance Instruction Form prescribed by
the Remitting Bank, bearing all details
necessary for effecting the remittance along
with an account debit mandate
or
b. by dropping a cheque from an account with
the Remitting Bank along with the Remittance
Instruction Form
Based on the details in the form, the Remitter’s
Bank debits his bank account and sends a
SWIFT message to transfer the money to the
Beneficiary’s Bank.
Figure 6
Listed below are the various Disbursement
Modes of remittance using which the money
can be tendered to the beneficiary. The settlement between the MTOs in the two
countries takes place through their partner
1. Direct Credit to the beneficiary’s account
banks. On receiving the remittance amount in
with the Beneficiary Bank
cash from the remitter, MTOs deposit those
2. Disbursement of Cash to the beneficiary on funds in their local bank accounts. MTOs
furnishing appropriate photo - identification/ request their bank to transfer the consolidated
address proof in the event of his not having amount to the bank account of the MTO agent
a bank account in the receiving country. In order to minimize
3. Transfer of Money by the Beneficiary costs, only the net amount (total amount to be
Bank to the beneficiary’s account with sent to the recipient country minus total amount
some other local bank using the local to be received from that country) is sent.
payment mechanism
Please note that the beneficiary receives the money much
4. DD issuance in the name of the beneficiary before the settlement between the MTOs
International Remittances
5. Figure 7 Fund Movement for an MTO
Costs have started spending on advertising and
brand building.
The fixed costs incurred by an MTO are
listed below: 4. Compliance and Regulatory Costs
Various mandatory compliance/regulatory
1. Origination and Disbursement Agent
procedures in the remittance business are
Network Costs
listed below. Expenses involved in following
Setting up agency networks/outlets in the them form a sizeable part of the total cost.
country of origination and disbursement
• KYC of Remitter / Beneficiary
forms a significant portion of an MTO’s
To prevent practices like transfer of
costs. Though traditionally, MTOs have had
money between anti-social elements,
proprietary agents, of late, third party agents
the “Know Your Customer” checks are
have also been appointed by Western
done by the Remitter’s and the
Union and Money Gram. While these agents
Beneficiary’s Bank. KYC would typically
receive a fixed minimum compensation,
involve obtaining documents such as
major incentives are linked to the number
photo-ID, address proof, passport
and value of transactions. The MTOs thus
details, driving license details etc.
share the risk of expanding their network
with these partners. • Regular Reporting of Transaction
Details to the Central Bank
2. Processing and Money Transfer Costs Central Banks place limits on the value
of an individual’s remittances within a
These are the fees to be paid to the
certain time frame.
local bank which buys and sells various
Additionally, institutions are also
international currencies, on behalf of the
supposed to comply with Anti-Money
remittance service provider. These costs are
Laundering requirements and report
linked to the aggregate transaction value
any suspicious/fraudulent transactions
and MTOs with large volume transactions
to the Central Bank.
could negotiate lower fees.
5. Administrative and IT costs
3. Marketing Costs
The MTO will also have to bear office
This simple transaction processing business maintenance expenses as well as system
has now become commoditized and players development and maintenance costs.
International Remittances
6. Risks Exchange Houses
Exchange Houses are extensively used for
Currency Hedging
remittances from the Middle East. Unlike the
When there is an International Remittance banking channel, this channel is based on
transaction through an MTO, there is a time lag Vostro accounts i.e. the accounts maintained
between fund availability to the recipients by exchange houses with various banks in
(money is generally received the same day) the beneficiary countries. These accounts are
and actual international transfer by the MTO’s pre-funded by the exchange houses.
partner bank through its Correspondent Bank
The Remittance Transaction Process
(generally takes 3 business days). This implies
a currency rate risk which is borne by the MTO.
Step 1 The remitter deposits the remittance
money in the overseas currency in cash
Salient Features of the MTO model
at the Exchange House counter.
1. It is the fastest mode of transfer since the Step 2 The exchange rate and the transaction
beneficiary can receive the money within fee are communicated and confirmed
seconds after it is sent. over the counter.
2. People without bank accounts can also Step 3 The beneficiary account details are
transact in this model. provided by the remitter.
3. The cost per transaction is lower compared Step 4 The exchange house instructs the
to other models. Beneficiary Bank with whom it has a
4. MTOs have the biggest market share in the tie-up for transferring the requisite
remittance business. amount in the beneficiary country’s
5. Setup costs are high, acting as a barrier for local currency using one of the
new entrants. following modes:
Figure 8 depicts the Vostro-based setup wherein the Correspondent Bank has an account with the Beneficiary Bank
a. E-mail: The exchange house sends Costs: The costs involved are similar to that of
e-mail to the Beneficiary Bank the MTO channel.
instructing it to transfer the amount
to the furnished beneficiary account. Salient Features of the Exchange House
Channel
b. Integration of exchange house and
Beneficiary Bank systems 1. Since the Vostro accounts are pre-funded,
the beneficiary amount is paid based
c. Beneficiary Bank’s proprietary on the funding in this account. Hence,
remittance platform on receiving the Exchange House’s
International Remittances
7. instruction, the beneficiary receives the costs
amount almost instantaneously.
1. Creating a network of banks in the countries
of origination and disbursement would be
2. The Exchange House has to fund its
a major cost.
account with the Beneficiary Bank; hence
the latter enjoys the float. 2. The cost involved in creating and maintaining
a robust and scalable IT platform would also
3. The Exchange House can draw a DD on its be significant.
Vostro account in favor of the beneficiary
and hand it over to the remitter over the Salient Features of the Online Model
counter, which can then be dispatched by
1. Transaction is effected from the convenience
courier or even sent along with a friend
of one’s home.
travelling back home. Alternatively, the
DD can also be drawn in favor of the 2. The transaction can be effectively tracked.
remitter, who can then carry it back to his 3. TATs are on the higher side (3 to 5
home country on his return and get it working days).
cleared there. This is a secure option for
4. The remitter has to undergo a one-time
blue collar workers who would otherwise
registration process which has a TAT of 4 to
have to travel with hard cash.
5 working days.
Emerging Non-Banking Channels
White Label Platform Providers
Online Channels A White Label Platform provider is a variant of
the online platform channel, wherein a third
Online Players, which provide platforms party enables banks and FIs operating in the
encompassing the entire remittance process, remittance corridors to launch remittance
are a recent development. They have created services by providing the following:
global networks with banks/FIs in origination
• A gamut of innovative products based
and destination countries. From the comfort of
on the latest demand, which could be
his home, the remitter can initiate a remittance
further customized to meet specific
request by registering himself on the online
requirements of banks and end customers
entity’s website and furnishing his and the
in various geographies
beneficiary’s bank account details.
• Best-in-class technology for new age business
The Remittance Transaction Process
• Marketing and sales support for promoting
the product range
Step 1: Select the recipient country and enter
the amount to be remitted • 24*7 operations support in case the client
proposes to outsource transaction processing
Step 2: Choose the mode in which the recipient
• Round the clock customer service through
would receive funds
toll-free numbers, email support and online
• Cash pickup live chats
• Direct deposit into bank account • Built-in international compliance and
regulatory practices
• Cash delivery to the recipient's home
• Adherence to the best practices in IT security
Step 3: Choose a payment method to confirm
Costs:
the money transfer
1. The major cost involved is in hosting and
Through a card or by debiting his account
maintaining the platform.
with the local bank in the remitting country
2. Marketing expenses form a significant part of
Step 4: Notify the recipient about the transaction the total cost.
International Remittances
8. Salient Features of a White Label Platform b. Offer high-level reach and scalability
Provider c. Bring about efficiency in operations
1. The provider need not be part of the d. Ensure more consistent and faster
banking/financial domain. delivery of remittance services
2. Without investing in technology and
This system is currently being evaluated by
operations, banks and FIs can use this
leading banks and institutions, which provide
plug-and-play offering to provide world-class
remittance services.
remittance services.
3. It provides all the advantages of an online 6. Online offerings on the originating side are
platform channel to the end customer. expected to increase in importance, in line
with the growing education levels and
4. The platform provider’s economies of scale computer proficiency of immigrants.
reduce the per-transaction cost.
7. Increasing Role of Software and Analytical
Emerging Trends in the Remittance Business Tools
1. MTOs are leaders in the remittance space, In addition to SWIFT and the local payments
but are being challenged by other channels. system in destination countries, which
form the IT backbone for the remittance
2. The following are turning out to be decisive
business, in-house systems are also being
factors while choosing a remittance provider:
used to streamline various processing stages
a. Transaction cost involved in a remittance transaction. Also,
b. Exchange Rates several CRM and web analytics software
c. User-friendly procedures are being used by the service providers
d. TAT of the transaction to analyze the transaction data for the
e. Transaction tracking mechanism following purposes:
f. Reach in the destination country a. Understanding customer behavior
b. Understanding business cycles
3. Agent exclusivity, one of the strong
competitive advantages of MTOs on both c. Segmenting customers
the remitting and receiving side of money d. Launching products targeted at specific
transfers, is eroding and agents are customer segments
increasingly shifting away from the exclusivity e. Designing marketing campaigns and
arrangement. incentive schemes for specific customer
segments
4. To increase their market share, conventional
banks are leveraging their existing client f. Aligning sales force and customer support
relationships and are coming up with channels for better customer service
innovative offerings such as prepaid g. Effective customer due diligence through
cards for the beneficiary. This enables them
i. Transaction monitoring
to provide account-to-cash and cash-to-
cash offerings to the customer, allowing the ii. Customer screening against published
beneficiary to withdraw cash in tranches. black lists
iii. Identification of risks and suspicious
5. SWIFT has come up with a Workers’ transactions
Remittances solution for banks and FIs
for settlement of cross-border person-to- 8. Role of Central Banks in Recipient
person payments. It aims at providing a Countries
standardized, off-the-shelf operational and
technical framework to Central Banks in recipient countries are
a. Connect new entities playing the role of facilitator and promoter
International Remittances
9. to extract maximum benefit from the • The number of migrants is inversely
opportunities provided by International proportional to the remittance costs across
Remittances. They are: different regions and service providers. This
seems to suggest an important volume
a. Allowing migrant workers to open foreign effect that works either through scale
currency accounts so that economies and/or higher competition in a
large market.
- their earnings could be retained in foreign
currency and can be exempted from • Corridors with higher income per capita in
foreign exchange regulations both the sending and receiving countries,
exhibit on an average, higher costs, which
- better interest rates could be offered and could reflect higher prices of non-tradable
the interest income could be made tax free. goods, such as services, in general.
b. Facilitating securitization of the future • Competition and market structure matter.
flow of remittances, which will result Corridors with a larger number of providers
in a better sovereign rating enabling and countries with more competitive
local banks to raise cheaper and banking sectors exhibit lower costs. On the
long term finance needed for the other hand, costs are greater in corridors
country’s development. where banks have a higher share in the
remittance business.
Challenges Faced by the Industry
b. Grey Channel
a. Transaction Cost
The Grey Channel eats into a significant
The cost that the remitter has to bear varies share of the remittance business. Apart
from 2% of the remittance amount and from the threat it presents to the established
may go as high as 10%, depending on the players, it also poses a security threat
following factors: since the money remitted could be used for
anti-social purposes. Since this channel
1. Exchange rate margin of the service does not have to comply with any regulatory
provider procedures, it offers lower transaction costs
2. Fixed fee being charged by the service and faster TATs to the remitter.
provider
3. Tax incurred c. Reconciliation of Remittance Transactions
4. Origination mode (Online, branch etc.) Since a remittance transaction flow involves
chosen by the remitter processing by multiple parties, a significant
5. Disbursement mode (Cash, DD, other percentage of transactions are non-STP
banks’ account etc.) chosen by the remitter due to various reasons such as incorrect
6. Revenue sharing arrangement between submission of details, account closure by
the Correspondent Bank and the beneficiary, system errors, manual errors by
Beneficiary Bank operations staff and communication gaps
between the parties involved- such as failure
Central Banks have constantly endeavored to to convey information regarding changed
bring down the costs. procedures -resulting in breach of TATs and
customer dissatisfaction.
In October 2009, The World Bank Development
Research Group published a paper on factors d. Revenue Sharing Arrangement
influencing remittance costs based on data
gathered across 119 country corridors. This report In the absence of a globally adopted
reveals the following trends which could help standard model, the revenue-sharing
address the issue. arrangement between the Remitter’s Bank,
International Remittances
10. Correspondent Bank and Beneficiary Bank Vostro - Local currency account maintained by
is ad hoc, resulting in disputes and at times, a local bank for a foreign (correspondent) bank.
disengagements between the parties. For the foreign bank, it is a Nostro account.
Moving Ahead…. SWIFT - Society for Worldwide Interbank Financial
Telecommunication supplies secure messaging
Though the International Remittance industry services and interface software to wholesale
is out of its infancy, it is still evolving and financial entities
catching up with the globalization process. TAT - Turn Around Time
Roadblocks and unaddressed issues continue
to exist. The pace of reform is slow and the GDP - Gross Domestic Product
business is still commoditized. Several political, FI - Financial Institution
social and economic factors defining the
business will have to be gradually tackled through DD - Demand Draft
various initiatives like CRM - Customer Relationship Management
ü
Promoting liberal movement of labor
KYC - Know Your Customer
ü progressive regulatory changes
Bringing
Central Bank - The body which regulates the
ü
Delivering services efficiently banking industry within a country
ü
Increasing market penetration
STP - Straight through Processing
ü products appropriately
Pricing
ü
Managing customer relationship References
ü
Developing innovations in technology Web-based research on many sites including the
ü up a cost-effective operational
Setting following:
infrastructure
1. www.worldbank.org
Planned and focused efforts in the above areas 2. www.swift.com
combined with political will and business 3. www.westernunion.com
acumen would help this industry leap forward and
4. www.moneygram.com
contribute significantly to the globalization process.
5. www.m2inet.icicibank.co.in
Glossary and Abbreviations 6. www.remit2home.com
Remitter - Person working abroad who intends 7. www.xoom.com
to send money across the border to his family
members back home
Beneficiary - Person who receives money from Author
the remitter
Akhil Nikam
Nostro - A banking term to describe an account Senior Consultant - Finacle
one bank holds with a bank in a foreign country, Infosys Limited
usually in the currency of that foreign country
International Remittances