Communications and Remittances
Remittance Numbers in 2004 to
Latin America (LAC)
Amount Transfered : US$ 45,000,000,000
Individual Transactions: 175,000,000Senders : 65% X 25M LAC-born 16,250,000Beneficiaries : 100,000,000
Source: IADB/MIFMarch 2005
Mahatma Gandhi’s definition
True Development puts first those that society puts last..
Whenever you are in doubt...Recall the face of the poorest and the weakest person whom you may have seen, and ask yourself if the step you
contemplate is going to be any use to him
Our Project: ALOOO.COM “E-mail for Everyone”
A FREE telephone based e-mail system financed by
advertisements .
A worldwide communication service provider with an innovative business model.
Access NumbersHonduras 800-221-3000Guatemala 1-801-00250000El Salvador (503) 298-0700USA&Canada 1-800-206-0966
Target MarketPeople that do not have, or do not know how to operate a computer and /or the
internet, but need to communicate locally and internationally with friends and
relatives, and have access to a telephone (private or public).
(Most of them, people involved in remittances.)
How Can an “Email Service”
Help Promote REMITTANCES For
Development ?
Psychology of the People involved in Remittances
• SENDER of Remittances. (Pro-Development)
A hard-working , progressive individual , that takes risks for his/her family, wants to buy land / house , save money and more.
• RECEIVER of Remittances. (Pro-Consumption)
A consumer, that uses remittances as “easy money”, after food and other necessities, buys tennis shoes, TV's, appliances, automobiles…
..The challenge ahead is to provide these millions of
hard-working migrants and their families with more options
to use their own money..
They will do the rest.Source: IADB/MIF
March 2005
• Using Alooo.com the sender can ask and receive information about his/her bank account balances and movements. Creating trust and transparency on the use of their bank accounts.
• A globalized “On demand” banking information system, is one of the missing links in the
banking the “unbanked” movement.
Alooo.com Option No.1
Using Alooo.com the sender can provide
instructions on the distribution, or investment of their money. As an example would be instructing the bank to make investments, savings, debt payments, or expenses. (The alternative: make the money transfer companies change their normal procedures in order to include this additional instructions…very unlikely.)
Golden Rule: the money belongs to the sender.
“It is Sender's Money”
Alooo.com Option No. 2
Alooo.com Goals
1. Help Lower the cost of Remittances.
2. Promote the use of Remittances for Development
3. Make Collective Remittances accountable.
4. Bring transnational families closer.
5. E-Inclusion of the transnational families.
6. Support Democracy (pilot in Honduras).
7. Help Deploy Remittance Paying Solutions.
8. Many More.
Brief description of on-going projects
to achieve these
GOALS.
Alooo.com Goals
1. Help Lower the cost of Remittances.
2. Promote the use of Remittances for Development
3. Make Collective Remittances accountable.
4. Bring transnational families closer.
5. E-Inclusion of the transnational families.
6. Support Democracy (pilot in Honduras).
7. Help Deploy Remittance Paying Solutions.
8. Many More.
Remittance Costs (for LAC in 2004) Average Direct Transfer Cost US$ 3.2 B (*1)7% (still high)
Communication Costs LAC US$ 350M(*2)
Procurement andother MGT. costs US$ 4.5 B (*3)
(10%-15% of amount)
Source: (*1)IADB/MIF(*2) 2-3min calls/tran.X $1,00(*3) RDS-HN http://www.rds.org.hn
Remittance Costs (for LAC in 2004) Average Direct Transfer Cost US$ 3.2 B (*1)7% (still high)
Communication Costs LAC US$ 350M(*2)
Procurement andother MGT. costs US$ 4.5 B (*3)
(10%-15% of amount)
Source: (*1)IADB/MIF(*2) 2-3min calls/tran.X $1,00(*3) RDS-HN http://www.rds.org.hn
MIF
Alooo Lower Cost
Our strategic partner in Guatemala
BanRuralBanco de Desarrollo Rural S.A.
Ads say the following:
In Banrural say Thank You
For yourRemittances,Doesn’t costAnything.
In Banrural sayThank You
For your Remittances,Doesn’t costAnything.
BanRural in Guatemala
2 Million customers(12M total population)
$450M paidIn 2004
(22% of $2,681M total)
BanRural in Guatemala
Alooo.comJan. 19th,2003
Alooo.com Goals1. Help Lower the cost of Remittances.
2. Promote the use of Remittances for Development
3. Make Collective Remittances accountable.
4. Bring transnational families closer.
5. E-Inclusion of the transnational families.
6. Support Democracy (pilot in Honduras).
7. Help Deploy Remittance Paying Solutions.
8. Many More.
A “Lay-away” Real Estate Projectthat promotes local savings and investments.
Bienvenido a Tu Casa PaisanoGoals
1. To sell land and houses to citizens living abroad. - Person with NO Savings.- Earns Weekly Wages.
2. Alooo.com is the chosen communication platform for the exchange of information between buyers and sellers.
Bienvenido a Tu Casa Paisano Financing Offer
1. NO Money Down.2. Weekly payment ( From $30- $100 )
(Remittances, Direct Deposit to Bank Account etc.)
3. Interest charge/credit may be applicable to payments.
4. Possession of land/house to be transferred in the future (4-6 years ).
5. Use Alooo.com to register payments and to receive feedback from the bank.
What are We really doing !!
Promoting Savings from migrant
workers into local banks (in origin country),
which implies, MONEY for local
development projects, jobs, and prosperity.
“Remittances for Development”
Alooo.com Goals1. Help Lower the cost of Remittances.
2. Promote the use of Remittances for Development
3. Make Collective Remittances accountable.
4. Bring transnational families closer.
5. E-Inclusion of the transnational families.
6. Support Democracy (pilot in Honduras).
7. Help Deploy Remittance Paying Solutions.
8. Many More.
Collective Remittances ?
Collective remittances is money raised by a group of migrants that
is used to benefit their native community, by funding local
development projects ,like water supply, school restoration etc.
( usually for the benefit of their kids left behind).
Collective Remittances Accountable?
Many Donors, that need to be informedindividually, of the project progress.
Alooo.com’s Group Management Module allows the responsible person to provide the needed feedback, to each and every one of the donors , bringing transparency to the transaction (Outlook “send to group” equivalent).
Alooo.com Goals1. Help Lower the cost of Remittances.
2. Promote the use of Remittances for Development
3. Make Collective Remittances accountable.
4. Bring transnational families closer.
5. E-Inclusion of the transnational families.
6. Support Democracy (pilot in Honduras).
7. Help Deploy Remittance Paying Solutions.
8. Many More.
Project Name: Alooo Video
Using their Alooo.com Account number and Password , transnational family
members can watch FREE of charge, 2 minute videos of their loved ones.
http://www.alooo.com
Here, you select the video to
watch.
Videos will be held for no more
than 60 days.
Alooo.com Goals1. Help Lower the cost of Remittances.
2. Promote the use of Remittances for Development
3. Make Collective Remittances accountable.
4. Bring transnational families closer.
5. E-Inclusion of the transnational families.
6. Support Democracy (pilot in Honduras).
7. Help Deploy Remittance Paying Solutions.
8. Many More.
Democracy and Information
Democracy needs an information platform to inform citizens critical data needed to exercise his/her right to vote.
For example, voters need to know
the location where they will vote.
Democracy and Information(pilot in Honduras)
On February 18th.-20th.,2005 Alooo.com serviced 17,000
(telephone) queries on voters needing the location where they
have to vote. (The number of registered voters in Honduras was 3.8 million , the
response time of a query was less than 5 seconds..)
Alooo.com Goals1. Help Lower the cost of Remittances.
2. Promote the use of Remittances for Development
3. Make Collective Remittances accountable.
4. Bring transnational families closer.
5. E-Inclusion of the transnational families.
6. Support Democracy (pilot in Honduras).
7. Help Deploy Remittance Paying Solutions.
8. Many More.
In order to work with Remittances for Development, Remittances need to exist in our working environment…
Remittance Payments BanRural
Alooo.com has developed a Remittance payment solution
using BanRural extensive network of remittance companies in the USA.
(72+ companies).
This application works based on POS (Point Of Sale) equipment or in the
World Wide Web.
Authentication Process (In Guatemala):
To ID a Person in Guatemala you need : ID Number AND Last Name
To ID a remittance you need:Remittance Number OR First Name
Authentication Process:
• 1. Find Full Name in National ID DB
• 2. Find Full Name in Remittance DB
• 3. Compare Full Names
Full Name:
First Name, Middle Name, First Last Name, Second Last Name
POS Remittance Payments
Payment Option ?1-4
Option 1: ID Number + Last Name + *Remittance Number*
Option 2: Reversion of Process No.1
Option 3: ID Number + Last Name + *First Name*Option 4: Reversion of Process No.2
POS Remittance Payments
BanRural
POS Remittance Payments
Payment Option ?1-4
POS Remittance Payments
ID Number ?
POS Remittance Payments
AlphanumericData !!
POS Remittance Payments
Last Name ?
POS Remittance Payments
Smith
POS Remittance Payments
RemittanceNumber ?
POS Remittance Payments
Data Input
POS Remittance Payments
TelephoneCall
POS Remittance Payments BanRural Avenida La Reforma
Guatemala, Guatemala
Tel . 2361-6260
Date: May 30th., 2005
Time : 10:55:27
Receipt No. : 1234567
Remittance No.: 1234567
First Name : Juan
Middle Name : Luis
First Last Name : Lopez
Second Last Name : Perez
Amount : US$ 220.00
--------------------------
Signature
ONE LAST IDEA for POS..What If ? Partial Payments were processed
The Bank will process the remittance and keep a balance for the unused funds.
1. Banks could charge a commission to the seller of goods and services ( like credit cards).
2. Banks will have funds in process (FLOAT), money with no cost that could be used on development projects, jobs, prosperity.
3. Providers of goods and services will have a new market of customers.
4. Receivers of remittances will have new options to establish credit, shop and pay.
5. Are we “Banking the Unbanked” ?
An Alternative: World Wide Webwith E-link Satellite Conectivity
Some Words of Wisdom
As you ramble on through life, brother,Whatever be your goal,Keep your eye upon the doughnutAnd not upon the hole.
My personal opinion :
The Doughnut is
DEVELOPMENT
Thank YouVery Much