A User’s Perspective on
the Benefits of
SWIFTRemit
Presented at:
SWIFTRemit Business Day
Miami, Florida
Octubre 11, 2011
By:
José Payano
Head of Innovation & Channels
Banco BHD, S. A.
SWIFTRemit Overarching BENEFIT…
Now that SWIFT has put in
place a Global Remittances
Platform I will devote this
presentation
to consider the remaining
problems…
SWIFTRemit Overarching BENEFIT…
• How to create «Social and
Economic Value» for the
constituency markets?
• How to deal with the
inability of banks to handle
the «new» problem?
Remittances effect better wealth distribution…
200
600
800
Source: World Bank
800
Million
Remittances effect better wealth distribution…
http://www.torre.nl/migrantsmovingmoney/
The sender and Receiver are usually non-banked!
Agent MTO Agent
The First Mile The last Mile
Sender Receiver
Both senders and
receivers of remittances
tend to remain outside the formal financial sector
OECD – Competition
and Remittances y LA
Lenora Suki, Columbia
University
Banks aren’t really partaking…
Depository institutions have only a small
participation in the Remittances market of 5%-
10% of the total depending on the country. OECD…
How Remittances contribute to Development?
Remittance Use
Day-to-Day
Livelihood
Health
Care Productivity
Income Decile Upgrade
Education Human
Capital
Small Scale
Investments Build Assets
Small Savings
Small Bussiness
Jobs
The Impact of Remittances
In Development/ MasterCard
Cutting Remittances costs is one of the biggest challenges…
2-5% Cost reduction
338
Billion
2008
350
Billions
12 Billion
Growth in 10 years…
This might certainly
create an impact in
the lives of many
households…
Shrinking Population…Increasing demand for migrants?
How should we pursue innovation?
Creating value with “The Financial Inclusion Model”…
To sell dreams…
We must create value, of Social and Economic kind: WE shall think of
how to better the lives of people through our Technology innovations!
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