The UPU Postal Payment Services and financial inclusion

© UPU 2009 – All rights reserved

The UPU Postal Payment Services and financial inclusion

Tunis, 22 and 23 October 2009

Serguei Nanba – Postal Financial Services Coordinator


Presentation of the Universal Postal Union

• Created in Bern in 1874 The International Bureau, the permanent

secretariat of the UPU, is based in Bern

• An intergovernmental organization and a United Nations specialized agency

• The principal forum for cooperation between governments, Posts and other postal sector stakeholders


The postal sector worldwide

• 657’000 post offices in 191 countries (500’000 in rural areas) In Sub-Saharan Africa, on average, 80% of the post offices

are located outside the 3 biggest cities of the country, in areas where 80% of the population lives

In rural areas of SSA, 6.45 times more post offices than outlets of the biggest private providers

• In Africa: 25’100 (only permanent post offices)• More than 5 millions employees worldwide• In Africa: 160 000 employees • Around 80% of designated postal operators worldwide provide some

sort of financial services• In 2007: 1,15 billion money orders sent by Posts worldwide• In Africa (44 countries): 57,9 millions money orders


Implementation of the Postal Payment Services Strategy 2009-2012

• Expand and develop the UPU worldwide electronic payment network (WEPN)

• Develop:• UPU Worldwide postal payment regulations (multilateral

framework)• UPU Clearing and Settlement system • Communication policy• Universal and collective brand

• Focus on migrants’ remittances corridors• Associate electronic remittance services with postal account-

based services through rural post offices to foster financial inclusion of the poor


UPU-IFAD project in West Africa• Target: migrants and recipients of migrant remittances in rural areas of

six West African countries: Benin, Burkina Faso, Mali, Mauritania, Niger, and Senegal

• Partners: IFAD, UPU, Le Groupe La Poste, France

• Main activities:

• Connection of around 300 rural post offices in 6 countries, extension of an initial UPU regional projet

• Set up of the communication infrastructure (call centres, direct connection)

• New technology, equipment, training

• Development of the IFS services

• Cash is available in rural post offices – secured transportation and management

• Promotion of the service

• Associate remittances with account-based services


UPU-IFAD project in West Africa

Benefits:

• Low-cost and quality service available in rural areas

• Reduction of competitors tariffs on various corridors

• Reinforcement of rural Posts for provision of universal service

• First step in financial inclusion process for rural poor


First results:

• IT, commercial and Operational Model updated on the basis of new UPU Regulations and regional conditions

• New equipment installed and tested

• 14 October 2009: connection of rural postal offices and opening of electronic remittances services

• Large contribution in cash and kind of African Designated Postal Operators


•

UPU-IFAD African regional project- Total number of inhabitants: 43 530 126 - Number of inhabitance in rural areas: 28

742 470- Covering all of the territories of the six

countries, including all rural zones






• Products/services offered in post offices in different regions

- Domestic and international postal money order - Pension payments- Payment accounts- Debit and credit cards- Savings- Credit- Mutual funds- Insurances- Bill payments

(Permanent post offices network, mobile post offices, Internet banking, ATM, etc.)


Kazakhstan Post Bank

Social payments (pension, etc.)

Bill payments

Salary payments

Lending

Opening & management of accounts

Others (currency excange, credit cards, investment products)

Money orders 7%

24%

10%

10%

3,0% 1%

42%

- “Banking” products account for >15 %- PFS products account for > 42%- Total number of postal accounts > 3 M (20% of population)

Cash transportation3%


Brazil: Evaluating Access

0

10

20

30

40

50

60

70

80

90

100

< 1

975

1975 to 2

236

2236 to 2

457

2457 to 2

686

2686 to 2

948

2948 to 3

266

3266 to 3

782

3782 to 4

413

4413 to 5

035

5035 to 5

657

5657 to 6

267

6267 to 6

846

6846 to 7

480

7480 to 8

139

8139 to 8

872

8872 to 9

889

9889 to 1

1249

11249 to 1

3484

13484 to 1

8296

> 1

8296

%

Correspondents

Bank agencies

P opulation

Banco P ostal

2005Semi-deciles of GDP per capita

Poorest Richest


• Population: 180 M • More than 40% of

municipalities without banks in 2002

• 8.2 M newly banked people from 2002 to 2009

• 5,973 branches/PO

Brazilian Postal Bank: the bank that gets where no other bank has been

Strategy: first open in communities/municipalities without banks = Geographic financial inclusion


e-pension

e-paiement

e-banking

e-finance

e-Poste

e-boursee-transfert

e-mandat

On-line Solutions

E-sicave-guichet

e-douane



Thank you for your attention

Serguei NanbaCoordinator

Postal Financial Services

Tel: + 41 31 350 32 16Fax: + 41 31 350 31 10

E-mail: [email protected]

Economy & Finance

The UPU Postal Payment Services and financial inclusion