Sending money home_europe_2015
•Download as PPTX, PDF•
0 likes•2,137 views
Recommended
More Related Content
What's hot
Similar to Sending money home_europe_2015
Similar to Sending money home_europe_2015 (20)
More from IFAD International Fund for Agricultural Development
More from IFAD International Fund for Agricultural Development (20)
Sending money home_europe_2015
- 2. Remittances from Europe surpass US$109 billion
- 3. Where does the money go? Where do the people come from? Which regions rely the most on Europe?
- 4. Remittance outflows from main sending European countries, 2014 The sending side… Remittance outflows from main sending European countries, 2014 (Countries with annual GDP per capita > US$20,000) The top 10 European countries account for 82% of the outflows’’ Outflows form Europe represent 0.7% GDP of sending countries European diasporas have US$100 million accumulated in savings
- 5. …Russia send the most of the remittances to Central Asia and Eastern Europe… ..Remittances from the UK mainly go to Asia and Africa.. …France flows mainly go to countries in Africa… …A significant amount of remittances form Germany go to Turkey and eastern Europe…
- 6. Receiving Europe… One-third (US$36.5 billion) of flows remain in Europe ‘’The most remittance-reliant countries have a significant rural population’’ 35% Rural Population
- 7. Sending remittances from Europe costs 7.3% - slightly below world average Average Europe Western Europe Russia 8.3% 7.3% 7.9% World average Costs to send $US200 from… Costs increase when Costs decrease when 2.4% “A reduction to 5 per cent would save migrants and their families more than US$2.5 billion in transfer costs per year.”
- 8. Mobile Operators Online services Banks Banks play a major role as distribution channel for MTOs for sending and receiving flows in Europe. MTOs MTOs represent 70 per cent of all RSPs in the marketplace in receiving Europe. These MTOs operate with their own license or in partnership with banks and postal networks “Cash-to-cash continues to be the most used method for migrants in Europe, as in the rest of the world, to send money home.” Receiving Europe Actors in the marketplace There are over 200 remittance service providers (RSPs) in Europe. Postal networks Mobile and online platforms offer less expensive products but still struggle to convince clients Postal networks represent 30% of payout locations in receiving Europe. They account for 85% of payout locations in rural areas. Their market share is still limited.
- 9. Maximizing the impact of remittances “Access” Strengthen the remittance rural market “Use” Promote Financial Inclusion “Investment back home” Promote investment of remittances and migrant savings 1 2 3 Financial Inclusion – Identified opportunities
- 10. - Leveraging the impact of remittances requires differentiated, contextualized and concerted policies and strategies between remittance sending and receiving countries. - Regional harmonization is necessary to increase competition, expand financial options and lower risks. - Competition could be enhanced by reducing regulatory limitations, promoting diversity in the marketplace, providing incentives for banking institutions to offer low-cost transfers, and nurturing the positive impact of new technologies. Market Policy implications
- 11. “…its their Money” • Shift transactions from “cash to cash” to “account to account” • Encourage use and adoption of new technologies • Support financial education for both senders and receivers • Promote savings • Utilize remittances to establish credit history • Empower migrant workers and their families with more options to invest • Leverage development in local communities Opportunities
Editor's Notes
- World context: Stock of migrants and remittances flows worldwide and world average cost. International migrants are expected to surpass 250 million in 2015. Migrants’ remittances to developing countries reached $436 billion in 2014. World average cost for sending remittances is almost 8%. Rural areas are where remittances count the most: 40% of all remittances.
- Key message 1: Total flows from Europe were US$109 bn. There are 50 million migrants living in Europe 150 million people in developing countries benefit from remittances sent by migrant workers from Europe. Europe is now a major sending region after being historically a net receiver of remittances for much of the previous century. Europe has 10% of the world’s population, Europe has 20% of all migrant workers (50 million) Europe is the source of 25% of global remittance flows.
- Key message 2: Where do the people come from? - Migrants mainly come from Eastern Europe (39%) followed by Asia (25%), Where does the money go? Mainly EUROPE One third to eastern European countries Two-thirds (US$72.9 billion) of flows go to developing countries in regions outside Europe - Asia receives the largest amount (US$35 billion) Which regions rely the most on Europe? Mainly EUROPE - North Africa and Central Asia are the Regions beyond Europe most reliant on European remittances, largely from France and Russia respectively - Latin America and the Caribbean receive US$6 billion mainly from Spain.
- Key message 3: SENDING SIDE – FLOWS - The top 10 European sending countries account for 82 per cent of the outflows. - The top 6 sending European countries (RUSSIA, UK, GERMANY, FRANCE, ITALY, SPAIN) are also among the world’s top sending countries. - Russia is the top sender at US$20 billion almost all to Eastern Europe and Central Asia. ?? Drain from Europe ?? - Flows represent less than 0.7% of annual GDP of sending countries (US178 GDP per capita) - In comparison, these flows are often 50% or more of income of receiving households in developing countries, and can equal up to 39 per cent of receiving countries’ annual GDP.
- Highlights: IN SLIDE Migrants in Russia send the most remittances - US$20 billion - mainly to Central Asia and Eastern Europe. Turkmenistan and Uzbekistan rely fully on the Russian Federation for their remittances. Flows from the UK amount US$17 billion. Fifty per cent of flows from the UK go to six Asian countries: India, Pakistan, China, Philippines, Bangladesh and Sri Lanka. In Europe main recipient is Poland. And in Africa the main recipient is Nigeria. Flows from Germany amount US$14. Poland is the main EU recipient of remittance flows from Germany. - Turkey is the most reliant on remittances from Germany (48 per cent of its flows are from Germany). - Flows from France amount US$10 billion North Africa and sub-Saharan countries are the most reliant on remittances from France. NOT IN SLIDE Flows from Italy amount US$ 10 billion Italy’s flows are diversified mainly in 3 regions: Asia, Europe and Africa Flows from Spain amount US$9.6 billion. Spain is the main link to LAC, but also one of the main sources of remittances for North Africa.
- Key message 5: RECEIVING SIDE – FLOWS EUROPE: There are 19 major remittance-receiving countries in Europe, led by Ukraine, Poland, Serbia and Romania. 80% of these remittances - US$36.5 billion - come from European sending countries. - The 9 non-EU European countries, which are mostly agriculture-based economies, are the most reliant on remittances from Europe. Remittances from Europe represent an important share of GDP for Moldova (22%), Kosovo (17%) and Bosnia-Herzegovina (10%). Remittances as a percentage of annual GDP: - 10 EU countries: between 1.2% and 5.2% 9 non-EU European countries: between 2% and 25%
- Key message 6: Cost of sending money are coming down but still too high - US$ 200 is the most typical amount sent by migrants. - Average European cost at 7.3% is slightly below world average- 7.9%. However, Western Europe is above world average at 8.3% Russia has the lowest costs: 2.4% Trends: - Competition among MTOs and wide dispersal of payout locations are key drivers of reducing costs - High costs are due to dominant positions of major MTOs, high exchange rate commissions or high bank transfer fees - Limited information is often a barrier to using the least expensive remittance option
- Highlights: MTOs – Money Transfer Operators: Cash-to-cash remains the preferred option for migrants in Europe, as in the rest of the world, to send money home. The three global MTOs, are present on both the sending and receiving sides and dominate the market: MoneyGram International (MG), Ria, and Western Union International (WU). BANKS in Europe: Are also a major collection and distribution channel for sending and receiving remittance flows. Mainly act as agents of MTOs, without providing financial services to remittance clients. Generally provide expensive account-to-account services. Postal networks: Postal networks are widely present in the market but their potential is still largely under-utilized, particularly in rural areas Mobile Operators and Online Services: - Are less expensive, and provide a good alternative for receiving money in rural areas. - Regulatory frameworks in the EU still require harmonization in order to promote innovation - Banks are increasingly reluctant to host the accounts of innovative technology-based operators - Online platforms offer less expensive products but still struggle to convince clients
- 9