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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.

Swift remit a users perspective on the benefits

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This was a brief approach on the SWIFT Remittances Platform's benefits to the challenging Remittances Market. It's terse look at the issue, but my "take" goes beyond a simple one: How could banks address the challenge when they had not prepared for this? The growing flow of remittances isn't short of extraordinary, especially if you consider the "slide" inside that "By 2040 developed countries will be COMPETING FOR MIGRANTS"...We'd better prepare!

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Page 1: Swift remit   a users perspective on the benefits

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.

Page 2: Swift remit   a users perspective on the benefits

SWIFTRemit Overarching BENEFIT…

Now that SWIFT has put in

place a Global Remittances

Platform I will devote this

presentation

to consider the remaining

problems…

Page 3: Swift remit   a users perspective on the benefits

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?

Page 4: Swift remit   a users perspective on the benefits

Remittances effect better wealth distribution…

200

600

800

Source: World Bank

800

Million

Page 5: Swift remit   a users perspective on the benefits

Remittances effect better wealth distribution…

http://www.torre.nl/migrantsmovingmoney/

Page 6: Swift remit   a users perspective on the benefits

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

Page 7: Swift remit   a users perspective on the benefits

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…

Page 8: Swift remit   a users perspective on the benefits

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

Page 9: Swift remit   a users perspective on the benefits

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…

Page 10: Swift remit   a users perspective on the benefits

Shrinking Population…Increasing demand for migrants?

Page 11: Swift remit   a users perspective on the benefits

How should we pursue innovation?

Page 12: Swift remit   a users perspective on the benefits

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!