postal banking worldwide/media/assets/2014/07/fin_panel-2--post… · good deal for the bank not...
TRANSCRIPT
POSTAL BANKING WORLDWIDE Lessons for deepening financial inclusion and
ensuring long-term viability of postal operators
Alexandre Berthaud-Purata
Pew Conference on Financial Services
and the Post Office
July 16, 2014
1
INTRODUCTION: A GLOBAL PANORAMA
2
Fin Services:
28% growth
Letters: -
19.81%
reduction
Source: UPU statistics, 2011
THE IMPORTANCE OF FINANCIAL
SERVICES WORLDWIDE
3
3 out of 4 postal
operators offer
financial services
A SIZEABLE CONTRIBUTION TO FINANCIAL
INCLUSION WORLDWIDE
4
Source: UPU
1.6 Billion Accounts
THE POSTAL SECTOR:
2D LARGEST CONTRIBUTOR TO FINANCIAL
INCLUSION WORLDWIDE
5
Source: UPU
1 Billion people
included through the
post
THE POSTAL SECTOR:
2D LARGEST CONTRIBUTOR TO FINANCIAL
INCLUSION WORLDWIDE
6
Source: UPU
A MAJOR PLAYER IN DEVELOPED
COUNTRIES
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
China
Italy
Poland
Hungary
Slovak Republic
Greece
Czech Republic
Croatia
Latvia
Israel
Spain
Slovenia
Luxembourg
Korea, Rep.
Belgium
Ireland
United Kingdom
Estonia
Japan
France
Austria
% of Population with Account, by Country
Account at FI only
Account at BOTH FI and Post
Account at Post only
Source:
World Bank, Global Findex, 2011
7
POSTAL OPERATORS OFFERING
INTERNATIONAL MONEY TRANSFERS
Source:
World Bank, Global Findex, 2011
8
Source: UPU
POSTAL OPERATORS OFFERING
GOVERNMENT PAYMENTS
9
Source: UPU
POSTAL OPERATORS OFFERING INSURANCE
10
Source: UPU
POSTAL OPERATORS OFFERING SAVINGS
11
Source: UPU
BUSINESS MODELS
12
Unbanked Banked
Payments
Savings
Loans
Insurance
DIRECT POSTAL FINANCIAL INCLUSION
Post
Office
Source: UPU
13
Financial Inclusion
Insurance Partner
Bank Partner
MNO Partner
VS. INDIRECT POSTAL FINANCIAL
INCLUSION?
Post
Office
Source: UPU
14
Cash-Merchant
Postal Bank
Own Remittances
Partnership Model
Unlicensed PFS
THE BUSINESS MODEL STAIRCASE
15
THE BUSINESS MODEL PREVALENCE
16
Source: UPU
IMPA
CTSU
STAI
NABI
LITY
INVE
STM
ENT
EASE
OF
IMPL
MEN
TATI
ON
BM5 BM4 BM3 BM2 BM1 BM0
17
THE BUSINESS MODEL TRADE-OFF THEORY
Source: UPU
CASE STUDIES
18
SPAIN:
SINGLE PARTNER
Not a bank, only a brand
Postal savings was privatized in 1990s
Leverage the network to increase revenues (1999)
Bid to chose the partner (highest paying)
Deutsche Bank as partner – offer full range of retail financial services
Usage is low -150,000 clients (Partner selection)
19
BRAZIL:
SINGLE PARTNER
Bradesco 2001; Banco do Brasil 2012
10 million accounts opened in 10 years
2.5% of revenue from financial services
Good deal for the Bank not for Post
Issue of changing partners
Learning curve for the Post today (JV)
Locally: Job + SMB creation
20
BRAZIL:
SINGLE PARTNER
21
From 2,500 to 6,500 branches
Source: Bradesco
UK:
MULTIPLE PARTNERS
Multiple partnerships
Special Relationship - Joint venture with Bank of Ireland (50-50)
24% of Revenues from Financial Services
477 M USD in revenues
Deposit 16 Banks / withdraw 22
British demand more financial services at the Post Office (current accounts)
22
ITALY:
POSTAL SAVINGS + PARTNERSHIP
Unlicensed postal savings
72% of Revenues from Financial Services
467 M USD in profit
Profit comes from investing in government bonds
Partnership on the lending side to complete the product range
Products linked to mobile (MVNO) + Prepaid cards
23
FRANCE:
FULL-FLEDGED POSTAL BANK
Transformation of postal savings (2006)
10,5 million accounts/29 million customers
Full range of products/clients
788 M USD in profits
Step-by-step approach to licensing + partnerships
Banking accessibility Law
24
CONCLUSIONS
25
LESSONS LEARNED
“Postal operators tend to be better at banking the poor than the banks and other financial institutions”
Postal Operators have the right tools to respond to the three main challenges of financial inclusion:
Accessibility (largest network)
Affordability (cheapest provider)
Eligibility (open to everyone)
There is no one-size fits all model (capacity is the key) / Step by step approach is best
26
LESSONS LEARNED
Key lessons:
Launching a postal bank from scratch is a
complicated endeavor
Step by step approach is key
Start with offering services in partnership and then
move on to offer the services directly
Politics come into play when it comes to Postal banks
27
THANK YOU! Contact:
or
28