presentation to the caribbean association of indigenous banks
DESCRIPTION
PRESENTATION TO THE CARIBBEAN ASSOCIATION OF INDIGENOUS BANKS. Georgetown Guyana November 12 – 15, 2007. CARVING OUT OUR SPACE IN THE GLOBAL REMITTANCE MARKET. Presented by: Mr. Andrew Cocking, Deputy Group President International Business. HISTORICAL PERSPECTIVE. - PowerPoint PPT PresentationTRANSCRIPT
PRESENTATION TO THE CARIBBEAN ASSOCIATION
OF INDIGENOUS BANKS
Georgetown GuyanaNovember 12 – 15, 2007
CARVING OUT OUR SPACE IN THE GLOBAL
REMITTANCE MARKET
Presented by: Mr. Andrew Cocking, Deputy Group President International Business
HISTORICAL PERSPECTIVE
• Who sends remittances & why?• Traditionally, migrant populations from less developed
countries • Major players
• Western Union• Moneygram
• Delivery mechanisms• Delivery of cash or cheques through agent locations in
receiving countries• Regulation
• Level of regulation non existent to low• Use of technology
• Limited, but has been increasing with customer demand for service & competition
Agents of Change in the Remittance Environment
Significant changes are taking place in the following areas:
• Regulatory
• Economic
• Technology/Social
REGIONAL INFLOWS – 2006 (US$ - Millions)
Antigua 9
Barbados 140
Aruba 12
Belize 46
Dominica 4
Dom. Rep. 2717
Grenada 22
Guyana 201
N. Antilles 8
Jamaica. 1783
St. Lucia 2
Haiti 985
St. Vincent & Grenadines 5
Suriname 4
T&T 87
Total Inflows 6025
REGIONAL REMITTANCE OUTFLOWS – 2006 (US$ M)
Dominican Republic 26
Grenada 2
Guyana 55
Haiti 59
Jamaica 394
St. Kitts and Nevis 2
St. Lucia 1
St. Vincent and the Grenadines 2
Suriname 9
Aruba 68
Bahamas, The 144
Barbados 40
Netherlands Antilles 59
Total Outflows 816
California
New YorkTexas
Florida
Illinois
New Jersey
Others
Georgia
California
New York
Texas
Florida
Illinois
New Jersey
Others
Georgia
US Remittance Flows by State
IMPORTANCE OF REMITTANCE TO NATIONAL DEVELOPMENT What role do we wish to play?
• Remittances are the largest source of external financing
for developing countries
• Remittances exceed foreign direct investments
• Remittances exceed official aid
• Remittances may be used as collateral in the micro
finance sector
• In some instances remittances exceed 5% of GDP
Roadmap into Remittance services for Indigenous Banks
• Collaborative Effort!
• Develop our own remittance centres in the Diaspora
• Control the local distribution
One Caribbean Virtual Banking Platform“Bank in a Box”
Services available to Deploy Send money to family globally
Person to person
Bank account to bank account
Mobile device to mobile device
Mobile Banking Bank Account to Bank Account, Bank Account to Person, Bank Account to Card, Person to
Bank Account, Person to Card, Card to Bank Account, Card to Card
Mobile Bill Pay, Mobile Remittances, Mobile Merchant Services
Pay your taxes and bills, or your family’s taxes and bills locally or from abroad
Make investments:
Local and Overseas NGO programs
Investments offered by banks and other FIs
Government issued bonds
Charitable Donations
Government and local business payroll
Purchase cell phone minutes for your family locally or from abroad
OPPORTUNITIES FOR BANKS
• Revenue from Remittance Fees• Foreign Exchange Revenue• Additional Revenue Stream from Mobile Banking• Increase in Customer Base due to the increase in Service Offerings• Opportunity to cross sell/up sell other financial products and
services• Leveraging existing physical and electronic networks thus reducing
cost of ownership• Access to the Caribbean Diaspora Globally• Settlement on a Ubiquitous Caribbean Network• Bring Innovative Services to the Caribbean • Create a differentiation amongst Caribbean and Foreign Banks
LET US WORK TOGETHER TO CARVE OUT OUR SPACE IN THE
GLOBAL REMITTANCE MARKET!!
Thank you
Q & A