Remittances – Creating Value

The transfer of migrant’s remittances represents a huge business opportunity for banks and other financial institutions that is largely overlooked. The financial services industry, which plays such a pivotal role in the Payments Industry, is missing an important opportunity if they ignore a very large component – Remittances.

The flow of funds from migrant workers back to their families in their home country is an important source of income in many developing economies. The total value of these remittances has been increasing steadily over the past decade and it is estimated that in 2005 the total value worldwide was over US$ 230 billion equivalent, involving some 175 million migrants.

For some recipient countries, remittances are as high as a third of their GDP. Remittances also account for about a third of total global external finance. Additionally the flow of remittances appear to be significantly more stable than that of other forms of external finance. Because of measurement uncertainties, particularly about unrecorded remittances, the actual flows may be much higher – estimated by experts at 50% or more.

Remittances can be costly relative to the usual low incomes of migrant workers and to the rather small amounts of individual transfers. Migrants often also face difficulties in accessing remittance services if they do not speak the local language or do not have the necessary documentation. In some countries the relatively undeveloped financial infrastructure may make it difficult for recipients to collect the remittances. In some cases, the services are unreliable, particularly concerning the time taken for the funds to be transferred.

In addition, some markets are uncompetitive or have regulatory barriers to the provision of remittance services.

This intensive 2-day course provides an insight of the payment system aspects of remittances, and is designed to assist financial institutions that want to improve their understanding of this important market as well as develop the many business opportunities that present themselves. Intermediating these money transfers is a business opportunity with vast potential.

We examine how the public and private sectors can collaborate to encourage the providers of remittance services to switch from informal to formal channels and how they can make the formal sector more efficient and competitive.

What is the curriculum focus?

Over the course of the 2 days, we will deal with the following elements.

Remittances - What they are

Defining a Remittance
How do remittances affect the community
Terminology & Definitions
The “players”
Different Remittance types

Problems facing Remittance customers

Exchange rates
Fees
Service efficiencies
Accessibility – the First and Last Miles
Infrastructure
User education.

The mechanics of Remittances

How the process works
Alternative systems – We examine the Hawala system in detail and cover issues like; What it is? How it works? Why it is used? Its legality and How the system has been abused?

The Law

The legal basis for Remittances
How Remittances are regulated

The Remittance market

Who needs Remittances?
Who sends and who receives
Who are the intermediaries
Where are the major sources and destinations
Competition and access
The risks
The costs
Mapping the remittance flows

The Remittance process

The remittance process is examined in detail through a series of diverse “Remittance Models”

Putting order and stability into the Remittance Market

International efforts to regulate the Remittance Market
BIS & World Bank
UK Remittance Task Force
FATF Recommendations
The role of the central bank
Regulatory standards
Consumer protection

Case Studies

A survey of selected Remittance programs from across the globe
Case studies from Italy, Mexico, Philippines, Brazil and the wider Asia-Pacific region, including specific issues faced by remitters, receivers and their agents in each case

Business Opportunities

The Remittance Value Chain
What are the business opportunities for banks and other financial institutions
Advantages, Disadvantages, New ideas, Innovations & Market opportunities
Business challenges
Emerging money transfer systems

Who should attend?

The course has been specifically designed for Senior Bankers involved with

Payment Systems and Money Transfers
Payment Strategy
Micro Finance
International & Correspondent Banking
Retail Banking Services
Banking Product Development

Central Bankers involved with

Payment Systems

Payment Strategy & Policy

International & Correspondent Banking

Payment System Regulation & Oversight

Senior Staff of Money Transfer Operators

Development Agencies

For specific information contact us at courses@citadeladvantage.com



CITADEL ADVANTAGE		COURSE - Remittances

	Remittances – Creating Value The transfer of migrant’s remittances represents a huge business opportunity for banks and other financial institutions that is largely overlooked. The financial services industry, which plays such a pivotal role in the Payments Industry, is missing an important opportunity if they ignore a very large component – Remittances. The flow of funds from migrant workers back to their families in their home country is an important source of income in many developing economies. The total value of these remittances has been increasing steadily over the past decade and it is estimated that in 2005 the total value worldwide was over US$ 230 billion equivalent, involving some 175 million migrants. For some recipient countries, remittances are as high as a third of their GDP. Remittances also account for about a third of total global external finance. Additionally the flow of remittances appear to be significantly more stable than that of other forms of external finance. Because of measurement uncertainties, particularly about unrecorded remittances, the actual flows may be much higher – estimated by experts at 50% or more. Remittances can be costly relative to the usual low incomes of migrant workers and to the rather small amounts of individual transfers. Migrants often also face difficulties in accessing remittance services if they do not speak the local language or do not have the necessary documentation. In some countries the relatively undeveloped financial infrastructure may make it difficult for recipients to collect the remittances. In some cases, the services are unreliable, particularly concerning the time taken for the funds to be transferred. In addition, some markets are uncompetitive or have regulatory barriers to the provision of remittance services. This intensive 2-day course provides an insight of the payment system aspects of remittances, and is designed to assist financial institutions that want to improve their understanding of this important market as well as develop the many business opportunities that present themselves. Intermediating these money transfers is a business opportunity with vast potential. We examine how the public and private sectors can collaborate to encourage the providers of remittance services to switch from informal to formal channels and how they can make the formal sector more efficient and competitive. What is the curriculum focus? Over the course of the 2 days, we will deal with the following elements. Remittances - What they are Defining a Remittance How do remittances affect the community Terminology & Definitions The “players” Different Remittance types Problems facing Remittance customers Exchange rates Fees Service efficiencies Accessibility – the First and Last Miles Infrastructure User education. The mechanics of Remittances How the process works Alternative systems – We examine the Hawala system in detail and cover issues like; What it is? How it works? Why it is used? Its legality and How the system has been abused? The Law The legal basis for Remittances How Remittances are regulated The Remittance market Who needs Remittances? Who sends and who receives Who are the intermediaries Where are the major sources and destinations Competition and access The risks The costs Mapping the remittance flows The Remittance process The remittance process is examined in detail through a series of diverse “Remittance Models” Putting order and stability into the Remittance Market International efforts to regulate the Remittance Market BIS & World Bank UK Remittance Task Force FATF Recommendations The role of the central bank Regulatory standards Consumer protection Case Studies A survey of selected Remittance programs from across the globe Case studies from Italy, Mexico, Philippines, Brazil and the wider Asia-Pacific region, including specific issues faced by remitters, receivers and their agents in each case Business Opportunities The Remittance Value Chain What are the business opportunities for banks and other financial institutions Advantages, Disadvantages, New ideas, Innovations & Market opportunities Business challenges Emerging money transfer systems Who should attend? The course has been specifically designed for Senior Bankers involved with Payment Systems and Money Transfers Payment Strategy Micro Finance International & Correspondent Banking Retail Banking Services Banking Product Development Central Bankers involved with Payment Systems Payment Strategy & Policy International & Correspondent Banking Payment System Regulation & Oversight Senior Staff of Money Transfer Operators Development Agencies For specific information contact us at courses@citadeladvantage.com