ELECTRONIC CASH TRANSFERS IN DISASTER RESPONSE – OPPORTUNITIES FOR BUSINESS ENGAGEMENT

September 2014

Purpose of this briefing

This briefing highlights opportunities for collaboration between the business and humanitarian sectors in driving cash transfer programmes that provide those affected by a natural hazard1 with the financial means to meet immediate needs related to food, water, clothes, medical treatment, shelter and livelihood recovery.

It outlines the important role of businesses in building capacities within the humanitarian and government sectors and the opportunity to leverage business expertise, assets and networks in helping devise appropriate and effective market-integrated interventions.

It is informed by expert interviews and publications by the Cash Learning Partnership (CaLP), a coalition of humanitarian agencies working to improve the quality of emergency cash transfer and voucher programming across the humanitarian sector.

1 This briefing does not look at humanitarian interventions in response to other emergencies such as those related to armed conflicts, epidemics or famines.

Headlines

SECTION 1 THE IMPORTANCE OF MARKETS IN DISASTER RESPONSE AND RECOVERY

Markets are important in disaster response programmes. They are central to the livelihood of communities and can be leveraged for effective disaster response interventions. At the same time disaster response interventions should not distort local markets or further exacerbate destabilised markets.

SECTION 2THE ROLE OF THE BUSINESS SECTOR IN DRIVING MARKET ANALYSIS FOR EFFECTIVE DISASTER RESPONSE

Market analysis has become an important tool for humanitarian agencies to better understand how local markets have been affected by a natural disaster. It provides critical information for the design of effective interventions that leverage local market capacities in helping communities recover through, for example, local procurement, or aim to rehabilitate important parts of a market system. Locally established businesses are well positioned to provide their expertise and industry knowledge to inform and speed-up the work of humanitarian organisations.

SECTION 3THE USE OF E-PAYMENTS IN EMERGENCY CASH TRANSFERSCash transfers provide those affected by a natural hazard with the financial means and flexibilty to purchase necessary goods and services to meet urgent needs related to food, water, clothes, medical treatment, shelter and livelihood recovery. Electronic cash transfers can provide a reliable, effective, fast and secure way of transferring cash while also supporting the monitoring requirements of humanitarian organisations. They include card-based or mobile transfers as well as electronic vouchers.

SECTION 4BENEFITS OF ELECTRONIC CASH TRANSFERS IN DISASTER RESPONSE

Besides operational benefits, eletronic transfers can also support long-term development goals by providing the poor with access to formal financial services through, for example, financial literacy training, promotion of saving, and supporting access to identification documents.

SECTION 5THE ROLE OF BUSINESS IN ELECTRONIC CASH TRANSFER PROGRAMMES

Businesses from various industry sectors play a critical role in helping humanitarian organisations understand how to best build-up systems and leverage existing infrastructure. They often develop customised solutions to best meet the specific programme requirements and thereby co-create a new product or system. In doing so they can draw from the humanitarian organisation’s understanding of post-disaster needs and local market capabilities as well as access to donor funding.

SECTION 6EXAMPLES OF BUSINESS ENGAGEMENTS IN POST-DISASTER CASH TRANSFER PROGRAMMES

This section describes examples of partnerships between businesses and humanitarian assitance organisations that helped leverage existing resources in meeting urgent response needs through cash transfer programmes. These examples highlight the added value of all involved and the business case driving business investments. Examples include:• Two mobile money systems developed after the Haiti earthquake of 2010 • A prepaid card system for the disbursement of cash grants after the Pakistan floods of 2010• A closed-loop pre-paid card system developed for food assistance in response to a tropical

storm in the Philippines in 2013

SECTION 7BUSINESS OPPORTUNITIES

Working collaboratively with the humanitarian sector on finding effective market-integrated interventions in response to community needs after a natural hazard represents a strategic business investment. It contributes to the business’ bottom line by helping meet stakeholder expectations for businesses to play a greater role in dealing with natural disasters, explore new markets, co-create innovative products and services, as well as building relationships with national and local governments.

SECTION 8THE WAY FORWARD: PREPAREDNESS FOR MARKET-INTEGRATED RESPONSE

The full potential of post-disaster cash transfers can only be fully utilised if provisions are made well before a natural disaster hits. It is imperative for the business sector to provide its expertise, resources and network to build better market understanding and new cash transfer mechanisms that can be readily deployed in different post-disaster settings.

Picture: Courtesy: World Vision/Aaron Aspi

Table of Contents

PURPOSE OF THIS BRIEFING

HEADLINES

1. The importance of markets in disaster response and recovery

2. The role of the business sector in driving market analysis for effective market response

Oxfam market chain analysis after Haiti 2004 landslides

3. The use of e-payments in emergency cash transfers

4. Benefits of electronic cash transfers in disaster response

Access to formal financial services

Access to public services

5. The role of business in electronic cash transfer programmes

6. Examples of business engagements in post-disaster cash transfer programmes

Haiti 2010: Mobile money systems for earthquake response

Pakistan 2010-2013: Prepaid card system for flood response

Philippines 2013: Pre-paid card system for tropical storm response

7. Business opportunities

Meeting stakeholder expectations

Exploring new market segments

Co-creating innovative solutions and new services

Improved government relationships and commercial engagements

8. The way forward: preparedness for market-integrated response

List of references

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1. The importance of markets in disaster response and recovery

Natural disasters in the Asia-Pacific region can have devastating impacts on communities and economies. Large-scale as well as smaller, more frequent natural hazards can result in loss of life, injuries, other physical or mental health impacts, damage of properties and infrastructure, destruction of livelihood assets, and loss of savings, money inflows and crucial services. They can destabilise local markets and trade networks and have long-term impacts on livelihoods.

Post-disaster humanitarian response aims to help meet the basic subsistence needs of the people affected, save lives, reduce health impacts, ensure public safety, and help restore and improve community facilities, living conditions and livelihoods. Humanitarian agencies provide assistance through

• In-kind distributions: This includes the provision of temporary shelter, food, water and non-food items such as clothing. To support the rehabilitation of income-generating activities humanitarian agencies and governments also distribute seeds, livestock, equipment and other assets.

• Cash transfers: Beneficiaries receive financial assistance in order to purchase the goods and services they need from local markets. This can include cash grants, payment for work on public or community works programmes, or vouchers with either a cash or commodity value that can be exchanged for specified goods (e.g. seeds, livestock, and food) at participating traders, markets and fairs.

Markets are vital to livelihoods, as they support income-generating activities and provide goods and services. Disaster response interventions including any kind of resource transfer, as listed above, impact on local markets and the communities depending on them.

Understanding of local markets is critical to ensure that response interventions do not distort local markets or further exacerbate destabilised markets but rather make use of market dynamics in supporting livelihood rehabilitation. Market analysis is an important tool to help humanitarian agencies identify the most appropriate and effective type of intervention. It helps understand the impact of a disaster on a local market system and the potential consequences of humanitarian response interventions.

Businesses are well placed to support market-integrated interventions that utilise market dynamics through local procurement or the use of vouchers and cash transfers. Businesses also play a critical role in mid- to long-term market recovery and inclusive business models can make significant contributions in supporting rehabilitation and strengthening of critical market functions and players.

This publication focuses on opportunities for collaboration between the business and humanitarian sectors in driving cash transfer programmes for short-term disaster response and recovery. It outlines the important role of businesses in building capacities within the humanitarian and government sectors and leveraging business expertise, assets and networks in helping devise appropriate and effective market-integrated interventions.

It does not address the role of the business sector in restoring or strengthening market systems.

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Table 1: Why market systems matter in emergencies (source: Oxfam GB (2010))

Why market systems matter in emergenciesFor ensuring survival For protecting livelihoods

Market systems may be able to provide affected target groups with food, essential households items, fuel, and other forms of relief or services to meet basic needs

Market systems may be able to provide affected target groups with urgently needed tools, agricultural inputs and services, and fodder and fuel, or replace other livelihood assets

Market systems may be able to provide affected target groups wit jobs and opportunities for wage labour, or link them to buyers for their produce

1. The importance of markets in disaster response and recovery

Picture: Russell Watkins/Department for International Development

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2. The role of the business sector in driving market analysis for effective disaster response

Market analysis facilitates market-integrated response whereby local market dynamics are utilised in meeting community needs in the aftermath of disasters. Market-integrated response includes, for example, vouchers, cash transfers, and local procurement. The aim is to make most efficient use of humanitarian resources and encourage the rehabilitation of local economic activity to prevent prolonged aid dependency.

Market analyses are conducted at various stages and for different humanitarian response programmes. The ‘Emergency Food Security & Livelihoods 48 Hours Evaluation Toolkit’, for instance, aims to obtain a quick understanding of the emergency food security and livelihood situation within the first few days after a rapid-onset disaster in order to inform interventions that meet immediate needs. Assessing the post-disaster status of markets and traders is at the core of this toolkit. Households and traders are interviewed to better understand their capacities and challenges in helping meet food and livelihood needs of affected households. A key question is whether traders would be able to replenish their stocks within seven days if people had or received the purchasing power to procure what they need. This includes an assessment of traders’ ability to source, transport, store and pay for supplies.2

Another tool, the “Emergency Market Mapping and Analysis Toolkit” (EMMA), serves a similar purpose but is much more comprehensive and usually meant to be conducted once an emergency situation has stabilised. It does not only help assess the most appropriate response intervention but also to identify measures aimed at rehabilitating critical market systems, such as the provision of grants or technical training to local businesses.3

The private sector is well positioned to support timely and effective market analysis.

• Financial institutions, chambers of commerce or trade associations, engage regularly in local market activity and possess a more thorough and detailed understanding of local economies.

• Companies from various sectors have a thorough understanding of their industry that can be crucial in informing humanitarian interventions dealing with seeds, fertiliser, rice, fish, or shelter materials.

Informing the work of emergency organisations is in the very own interest of many companies who stand to benefit from market stabilisation and improvements.

2 Emergency Capacity Building Project (2011) 3 Practical Action (2010)

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► Oxfam market chain analysis after Haiti 2004 landslides

Market chain analysis aims for the swift recovery of an affected market through interventions that look beyond the recovery of individual market players and instead address an entire supply chain, benefitting a broader range of individuals.

It is based on the understanding that a natural disaster incurs damages to local producers (i.e. damage to crops, livestock, fishing boats and gear) and beyond that also impacts market players that process, transport, trade, sell and purchase a final product. While supporting farmers or fishers to replace assets is important, their selling power can still be limited due to other market disruptions.

In the aftermath of the 2004 Haiti landslides and floods, Oxfam conducted a market chain analysis in partnership with three local community-based organisations to assess the impact of the disaster on local markets and to identify interventions to recover normal market functioning. The market value chain, services and environment both before and after the floods were analysed and market players trading key foods and non-food items considered essential for survival and livelihoods were interviewed.

The analysis revealed that the main staple food and other primary commodities including rice, sugar, flour, oil, beans, cement, and others, originated directly from general market suppliers based in Port au Prince. There were then two alternative channels through which goods and commodities reached consumers and women traders who exchanged these at the border or in local markets:

a) A few major local wholesalers purchased goods from market suppliers, receiving zero-interest loans on the basis of acquaintance and trust. Goods and commodities were then supplied to middlemen, transported usually by donkey and mule, and sold in small amounts to numerous retailers. Retailers took the goods on a daily credit basis and sold them in the more marginal areas.

b) Madam Saras, female traders, bought goods and commodities directly from market suppliers and supplied retailers. Madam Saras play a critical role in the Haitian market system, acting as market intermediaries that transport seasonal agricultural produce from rural gardens and smallholder farms to urban markets.

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After the floods the market chain for staple foods and commodities was significantly affected. All market players, except suppliers had experienced losses and damages:

• Wholesalers’ storehouses and trucks were destroyed

• Middlemen, retailers, border traders, and Madames Saras lost stock and pack animals for transport

• Consumers lost both assets and income-earning opportunities, in consequence their purchasing power was reduced

As a result of the analysis Oxfam tailored its interventions to the different needs of key market players:

• Cash for Work program: 500 of the poorest consumers helped repair damaged roads and drainage channels, thus rehabilitating access to local markets and receiving much needed wage

• Vouchers: Food insecure families received food vouchers that could be exchanged for rice at local retail shops until food supplies normalized. 250 Madame Saras and women border traders received cash to purchase necessary materials for rebuilding their

trade businesses from local retailers. 500 farmers received vouchers to purchase livestock and seed to sow the next season’s crops.

• Community fairs: These fairs provided the opportunity to exchange vouchers for seed and livestock supplied by middlemen and other farmers. They also served to facilitate the flow of market information, e.g. prices, availability, and quantities.

• No assistance was provided to wholesalers due to their financial standing as most wealthiest community members.

Oxfam’s multi-pronged approach and targeted interventions made an effective contribution to restoring economic activity and creating income-generating opportunities. It was only due to the trust between the communities and community-based organisations that Oxfam was able to gain access to detailed market and livelihood information.

References: Creti, P., (2013) and The International Recovery Platform and United Nations Development Pro-gramme India (2013)

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Picture: FAOALC

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3. The use of e-payments in emergency cash transfers

Cash transfers in post-disaster response aim to provide those affected with the flexibility to purchase the goods and services that they most need, including building materials, investing in local businesses or petty trade4, debt repayment, healthcare, education and food. They thus foster dignity in the receipt of assistance by giving affected communities flexibility and choice.

When beneficiaries purchase goods from local vendors and businesses to reduce the costs of travel, local markets and communities are consequently strengthened.

Cash transfers can also support women’s empowerment, for example, when they provide financial resources to women in countries where women have little opportunity for income-generating activities. Humanitarian agencies can include women in cash for work programmes by paying them for home-based activities such as producing blankets or clothes and supporting them in making necessary out-of house purchases.

Cash transfers are considered to provide an effective and fast way of providing post-disaster assistance. They are, however, not universally appropriate and in-kind distributions and technical assistance, such as the introduction of cash crops and more effective irrigation techniques for smallholder farmers, will still be relevant in many cases.

Cash transfers, either on their own or complementary to in-kind distributions, are considered to be most appropriate in situations where markets are still functional (or have recovered quickly) and where essential goods and services are available for purchase through local markets. The market also needs to be able to respond to an increase in demand in certain commodities such as food or shelter materials.

In the humanitarian context four types of CTPs are being used:

• Unconditional cash transfers: These grants are given to beneficiaries without any conditions and can be spent based on the beneficiary’s own judgement.

• Conditional cash transfers: These grants are provided once a specific obligation or requirement has been fulfilled such as sending children to school, building shelter or visiting nutrition centres.

• Cash for work: Beneficiaries receive payment for engaging in temporary employment programmes such as repairing roads, clearing debris or re-building infrastructure.

• Cash vouchers: Cash vouchers allow beneficiaries to purchase goods from participating traders. They are denominated with a cash value and can be reclaimed by traders at a bank or the implementing humanitarian organisation.

Unconditional cash transfers are usually used to provide support during an emergency response. Once the immediate emergency response period has passed and targeted recovery activities are underway, conditional cash transfer means can be implemented.5 Important factors considered by humanitarian organisations in identifying the most appropriate intervention are the stage of emergency, beneficiary preferences, costs and regulatory concerns, as well as market conditions.

In post-disaster areas with functional telecommunications and finance infrastructure, cash transfers are increasingly moving away from direct “cash in hand” or “cash in envelope”6 modalities to electronic transfers (e-transfers) which use digital payment systems to transfer value. Where feasible and appropriate, e-transfers enable a more effective, timely, transparent, and secure way of disbursing financial assistance.

4 Meaning the sale of inexpensive items at small-scale. 5 Smith, G., MacAuslan, I., Butters, S. and Tromme, M. (2011)

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7 The main forms of e-transfers adapted from Sossouvi (2013)

E-transfers allow beneficiaries to access money through local merchants in the community, which act as banking agents. Card-based systems, mobile money transfer systems and electronic vouchers are all storing electronic currencies in an electronic wallet (e-wallet) on a phone, card or voucher. The electronic currency, also referred to as e-money, can be converted back into cash with designated agents at any time, and used to pay bills or purchase goods at registered merchants. These e-wallets are generally safeguarded by a signature, a personal identification number (PIN) or most recently biometrics.

The main forms of e-transfers include7:

Card-based transfers:• It is not necessary for card-based systems

to be linked to a bank account, although they may be. Beneficiaries are able to access funds directly via ATMs or they can make purchases at registered merchants using Point of Sales (PoS) terminals. This enables cards to be used for voucher programmes or unrestricted cash transfers.

• The three main types of cards used by humanitarian agencies are magnetic stripe cards, smart cards and contactless cards

Mobile transfers:• Mobile phone transfers do not require

additional hardware and equipment such as cards or PoS terminals.

• The three main forms of mobile transfers used by humanitarian agencies are mobile tokens, mobile vouchers and mobile money.

E-vouchers:• E-vouchers are very similar to mobile

vouchers, the only difference being that authentication occurs over the Internet (or data service of a mobile network operator), often with the use of a smartphone. It does not occur over the mobile network (via SMS or USSD).

A more detailed breakdown of different e-transfer processes are provided in Figure 1.

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E-TransferMechanism

BeneficiaryEquipments

Infrastructure at the transaction

pointApplication

Cards

Mobile Transfers

E-Vouchers

1. Magnetic stripe card2. Smart card3. Contactless card

1. Mobile token2. Mobile voucher3. Mobile money

1. Mobile token2. Mobile voucher3. Mobile money

1. SIM + PIN2. SIM* + Voucher number + PIN3. Phone + SIM + PIN

1. Agent with basic phone2. Merchant with basic phone3. Agent / Merchant with basic phone

Merchant with smartphone or computer

Goods / Services

1. Cash2. Goods / Services3. Goods / Services + Cash

1. Card + Signatures (+PIN at ATMs)2. Card + PIN, signature or Biometrics3. Card + PIN, signature or Biometrics

1. Merchant with PoS or ATM2. Merchant with PoS or ATM3. Merchant with NFC PoS or ATM

Goods / Service + Cash

$

* Not always required

Figure 1: Summary features of e-transfer mechanisms (Source: Soussouvi, K. (2013))

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4. Benefits of electronic cash transfers in disaster response

E-payment systems in emergency cash transfer programmes can support swift, effective, and safe delivery of humanitarian assistance. Through an established branchless agent network with guaranteed agent liquidity (in terms of goods and cash), e-transfers can ensure speed and efficiency in aid delivery. The tracking of electronic payments can reduce the opportunity for fraud and diversion. Working through local shopkeepers and agents can also

significantly reduce security risks and costs on side of the agency that do not have to source and store supplies themselves.

An overview of the operational benefits of electronic cash transfers is provided in Table 2 on p.12. Beyond these immediate benefits, e-payment systems in emergency CTPs can help open access to formal financial services and to public services.

Formal financial services are crucial not only in enabling economic growth but also in reducing vulnerability to future shocks such as asset loss and damages from natural disasters. Access to the formal financial system provides the poor with a reliable, and safe way to store, save and remit money and the possibility to get a loan or buy insurance. While their savings are small and variable, they do play a crucial role in helping build resilience to future shocks.

Recent impact studies of savings accounts demonstrate that access to a savings account had a substantial, positive impact on levels of productive investments among women, and, within six months, led to higher income levels.8

Large-scale emergency CTPs have the potential to help foster the development of a country’s retail payment system. There have been cases of banks investing in the penetration of rural or under-banked areas such as through the expansion of a branchless banking agent distribution network or by means of other innovative approaches such as mobile ATMs. Although many pre-paid cards used in emergency CTPs are subject to limited activation periods, there have been cases where beneficiaries were able to transform these into functional bank accounts.

It is estimated that, to date, 273,000 bank accounts were set up following provisions of pre-paid cards in emergency response programmes, indicating that there is substantial interest of beneficiaries to continue to use payment systems after the humanitarian response programme period has passed. However, the extent to which this correlates with the poorest households is unclear.9

• In Pakistan 70.2 percent of recipients under the government-led cash grant programme expressed a desire to transfer the pre-paid debit cards into a permanent bank account. In response to this the private sector partner UBL Bank set an objective of 15 percent of card recipients to convert.10

• In 2011 Save the Children’s started a programme of piloting the use of smart cards in Zimbabwe. As part of a cash-for-work programme 1,000 recipients received ‘chip and PIN’ smart cards which act as ‘electronic sub-wallets’ contained within a bank account held by the humanitarian organisation. Savings promotion was a key programme component that helped motivate the Community Village Savings and Loan Scheme to adopt the card in order to save, and to take over the transaction costs of the system when the Save the Children humanitarian intervention finished.11

8 Dupas, P., Robinson, J. (2010) 9 Smith, G., MacAuslan, I., Butters, S. and Tromme, M. (2011) 10 The World Bank Case Study (2013)11 The Cash Learning Partnership (2011)

► Access to formal financial services

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In many middle-income countries mobile networks have developed faster than formal financial services opening up new ways to support financial inclusion. Mobile money systems allow beneficiaries to store money on their mobile phone without needing to provide full identification. For some service providers SIM card registration requirements suffice while others require varying identification proofs depending on the amount stored or transferred.

Access to e-payment technology alone does not give rise to automatic financial inclusion benefits for the poorest people.12 Besides financial literacy, stringent Know-Your-Customer (KYC) requirements required for bank accounts are a key challenge in enabling beneficiaries to transition from an e-wallet to a bank account. Mobile money accounts can reduce some of the entry barriers for the poor. With limits on how much one can transact or hold, mobile money accounts benefit from lighter KYC controls and better meet the needs of specific customer groups.13 (See, for instance, example of mobile money systems after Haiti’s 2010 earthquake on p.17)

Financial literacy training and enabling formal identification procedures are crucial in realising the potential for financial inclusion.

While investments in programme components that support the much longer-term goal of financial inclusion might not yield immediate results after the emergency CTP has concluded, they do ultimately support the goal of increased resilience to future shocks and thus potentially reduce the costs of post-disaster assistance in the long-term.

► Access to public services

Evidence has demonstrated that participating in cash transfer programmes and consequently having access to formal identification can provide beneficiaries with longer-term benefits such as the potential for households to have access to public services.14 Businesses have played a critical role in supporting beneficiary identification processes of CTPs that can have an impact beyond the programme.

Biometric IDs, for example, have supported the identification of eligible recipients (mostly through finger prints) and reduced fraud. Beyond this, biometric systems used in emergency CTPs have the potential to help eliminate the patchwork identification systems common in most developing countries.15

12 Smith, G., MacAuslan, I., Butters, S. and Tromme, M. (2011) 13 Alexandre, C., Chang Eisenhart, L. (2013) 14 Smith, G., MacAuslan, I., Butters, S. and Tromme, M. (2011)15 Gelb, A., Decker, C. (2011)

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Operational benefits of e-payment systems over cash-in-hand systems

Benefits ExplanationImproved security for humanitarian staff and recipients

• Using e-payment systems is perceived as much safer than recipients queuing in public to receive cash and agencies having to physically distribute money at a determined location

• Added sense of security through use of PIN to safeguard and store money

• Lost or stolen bank cards can be replaced without the loss of funds for recipients

Improved accountability and reduced leakage

• Potential reduction in opportunities for fraud or diversion of intended funds as it is easier for agencies to track electronic payments

• Increased visibility for designated agency staff of use of the grant and control of what recipients buy

• Unique PIN protection increases the likelihood cash reaches the intended person

Greater speed and efficiency of transfers

• Less time spent by beneficiaries accessing their funds, especially once e-payment systems have been operating for several distributions

• Cash-out points such as branchless banking agent networks, or vendors with point-of-sales (POS) devices, can allow for a significant reduction in time spent queuing to receive funding

Reduced costs for the agency • Using registered merchants has allowed agencies to cut down on costs of storing and transporting food and non-food items

Accessibility • E-payments solutions have proven to be accessible to beneficiaries in various contexts.

• Targeted assistance is often needed to support accessibility by particularly poor and vulnerable groups such as training for non-literate/numerate incuding financial literacy training

Better two-way communications

• Mobile e-payment systems open a better two-way communication channel between agencies and beneficiaries. Recipients have far greater access to express their concerns, opinions and suggestions through text message and telephone

• Mobile phones provided as part of CTPs also allow beneficiaries to have a more extensive communication device for their daily lives

Table 2: Operational benefits of e-payment systems compared to cash-in-hand systems (adapted from Smith, G., MacAuslan, I., Butters, S. and Tromme, M. (2011))

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5. The role of business in electronic cash transfer programmes

The business sector plays an important role in enabling and driving the adoption of e-payments systems in disaster response efforts.

CTPs typically target those most affected by a disaster - vulnerable and disadvantaged communities and marginalised groups such as minorities who find it hard to protect themselves. These communities whether located in urban or rural locations, generally have lower income and education levels and less reliable employment status. Often they do not possess civic identity documents and are thus disadvantaged when trying to access social programmes. In many cases they also lack access to basic infrastructure such as roads and electricity. Mobile network coverage and reliability are poor or, as is the case in many rural settings, non-existent.

Businesses from various industry sectors play a critical role in helping humanitarian agencies understand how to best build-up systems and leverage existing infrastructure in order to reach these beneficiaries. They can work with humanitarian agencies in conceptualising, developing and implementing each programme component including:

• Systems to identify and register programme beneficiaries

• E-transfer mechanisms including technology, software, and connectivity

• E-transfer devices for beneficiaries, merchants and agents including mobile phones and chargers, automatic teller machines (ATMs), and point-of-sales (POS) devices

• Network of well trained merchants and agents that support transactions and possess sufficient resources including cash and stock of goods

• Additional functionality that supports reporting, audit compliance, and transparency needs of humanitarian agencies

• Complaint and feedback mechanisms that allow beneficiaries to receive assistance as well as raise confidential concerns including those against programme staff of the humanitarian organisation or contracted service providers.

The circumstances under which CTPs are being developed are often challenging and companies play a vital role in developing effective solutions. For instance, beneficiaries might be illiterate and have no experience in using technology, infrastructure can be severely damaged after a disaster or poorly developed such as in remote villages, and often strict KYC requirements have to be met while beneficiaries might not possess civic identification documents. In most cases businesses work with humanitarian partners to develop customised systems that best meet the specific programme requirements and the prevailing technological, socio-economic, and regulatory context. The business sector’s ability to innovate and to leverage existing infrastructure investments to accommodate new designs is critical for the success of emergency CTPs.

In most cases humanitarian agencies – including NGOs, UN organisations or government institutions - approach companies in the aftermath of a natural disaster during the first weeks or months. Often collaborations between businesses and humanitarian agencies happen ad-hoc and focus on small-scale interventions defined by the agency’s particular mission, programme and funding sources. Businesses are either contracted as service providers or involved in a collaborative relationship with an agency where both parties bring in their unique skill sets and resources to co-develop the best solution for a particular disaster response programme.

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Table 3 on the next page provides an overview of the different businesses that can be involved in a humanitarian e-transfer programme. The overview is not meant to provide an exhaustive and complete picture of their particular roles but rather highlight engagement opportunities. Evidently, their role in CTPs relates significantly

to their ability to leverage pre-existing infrastructure, networks and expertise in a different market setting and for a new purpose. This allows for skills transfer between businesses and humanitarian partners and for the exploration of new markets.

Picture: Ben Lyon/Sierra Leone

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Business partner Potential role and responsibilities

Banks • Maintain an account of the funds available in the system and ensure that merchants get paid

• In card-based transfers: issue cards, provide POS devices to merchants and ATM facilities

• In mobile transfers: manage mobile money accounts and may assume responsibility for the agents depending on the regulation

• Provide live reporting and reconciliations of customer data through web applications

• Work with NGOs to manage the transition of beneficiaries to on-going use of e-payment services after the disaster period has passed

Non-bank financial institutions (for example insurance companies, pension or investment funds)

• Manage payment services for e-vouchers• Fund long-term investments to support growth and job

creation• Provide market-based safety nets and mobilise savings

Remittance firms and agents • Supports the secure transfer of cash and takes responsibility for the disbursement of funds to selected beneficiaries

• Provide beneficiaries with tracking numbers and instructions on where to collect cash transfers

• Beneficiaries receive the added benefit of discretion as the distribution/cash-out point either takes place in a closed off branch or a temporary point

Payment companies(for example Visa or MasterCard)

• Prepare and provide the payment network to process transactions

• Facilitate the delivery of aid payments to people affected by disasters and conflict

Mobile Network Operator (MNO)

• Provide mobile network connectivity and data• Manage mobile wallets and mobile-based transfers• Drive customer engagement and service delivery, including

agent network management, customer care and acquisition• Provide the payment-processing infrastructure, connecting all

other participants in the process• Develop a broader agent network that understands and uses

the product

Table 3: Potential role and responsibilities of business partners in cash transfer programmes

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Business partner Potential role and responsibilities

Micro-Finance institutions • Basic affordable financial services• Extensive retail distribution networks offer easy accessibility • They are often well established within a community and have

been able to build trust in their services

Third party software developers, technology providers or platform vendors

• Develop and/or provide e-voucher software and payment platforms

• Work with banks and MNOs to develop payment architecture and processes

Merchants • Sell goods and in exchange accept digital forms of payment (mobile money, mobile vouchers or e-vouchers)

• In some cases, merchants also convert e-money into cash and cash into e-money

Agents • Launch and train initial agent network with supporting management structure

• Awareness and education building for customers on how to use services and technology

• Support customers to convert e-money into cash and cash into e-money

• Can also act as merchants

Pawnshop franchises • Act as distribution system for large-scale cash interventions• Outlet for cash disbursement

Logistics and transportation companies

• Help assess infrastructure constraints and security risks for the transportation of goods and materials

• Support sourcing and distribution of goods and materials

Wholesalers • Help ensure merchants and community traders have sufficient stock of goods and materials to meet increased demand during CTP period

• Support the monitoring and documentation of good distributions

• Can support cash delivery to beneficiaries in the same way as agents in areas with no financial institution

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6. Examples of business engagements in post-disaster cash transfer programmes

The following case studies showcase collaborative partnerships between businesses and humanitarian agencies that have helped leverage existing resources in meeting urgent response needs through cash transfer programmes. They point out the different roles of humanitarian and business partners as well as their respective motives and added value.

► Haiti 2010: Mobile money systems for earthquake response

Programme detailsIn 2010, a magnitude 7 earthquake in Haiti led to 250,000 casualties, 500,000 displaced people and a cost to the economy estimated at up to $13.2 billion. Even before the earthquake only 10 percent of the Haitian population was served by the financial sector, banks lend to less than one percent, and there were less than two bank branches per 100,000 people. In contrast, 85 percent of the population had access to a mobile phone. Mobile money thus provided the opportunity for rapid, secure and cost-effective cash distributions to affected communities.

Six months after the earthquake, USAID in cooperation with the Bill & Melinda Gates Foundation launched the Haiti Mobile Money Initiative (HMMI) that provided an incentive fund with a total of US$10 million to initiate start-up and scaling of mobile money services. An additional technical assistance and management fund of US$5 million was provided by USAID for the development of the sector, which helped consolidate an industry position on regulatory and governance issues.

The Haiti Mobile Money Initiative played a significant role in the rapid development of mobile money services that did not only help meet short- to mid-term disaster response and recovery needs but also provided longer term financial services to previously unbanked households.

Banque de la République d’Haiti (BRH), Haiti’s Central Bank, allowed a flexible approach to customer registration for mobile money systems developed in the aftermath of the 2010 Haiti earthquake. Based on a tiered Know-Your-

Customer (KYC) system subscribers could access and store as much as US$60 on their phones without providing additional identification beyond SIM card registration requirements. If subscribers were able to provide full identification, they could store higher limits of up to US$250.

In less than one year after the earthquake two mobile money services were launched in Haiti:• Tcho-Tcho Mobile, the first mobile service

to be launched, was developed by Digicel, the largest MNO in Haiti, together with Scotiabank and technology providerYellow Pepper.

• T-Cash was developed by Voila and Unibank together with technology provider MoreMagic.

Both services require a SMS-capable mobile phone which then provides mobile wallets, acting as digital bank accounts and managed by a local agent. Both services were adopted in emergency cash transfer programmes.

To meet specific programme requirements related to donor reporting and audit compliance both mobile network operators (MNOs) invested in process design, system customisation, and the establishment of contracts. These investments were critical in achieving rapid transaction volume during the first year.

Programme resultsBy 2012, six mobile-money supported CTPs were completed for response and recovery efforts after the 2010 earthquake. They helped disburse almost US$6 million to more than 24,000 beneficiaries. In addition, the United Nations

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Development Programme (UNDP) and the World Food Programme (WFP) implemented major cash grant-based mobile money programmes to support food security and housing reconstructions.

An analysis by Dalberg Global Development Advisors found that mobile money systems were faster and safer than traditional physical cash delivery or voucher programmes. The firm expects that further developments into ecosystem development will improve cost-effectiveness and contribute to financial inclusion.

Since their launch, TchoTcho Mobile and T-Cash grew rapidly and built extensive agent networks that served a rapidly growing number of customers. The network of agents increased from 200 in December 2010 to 2,270 in January 2012. Two year’s after the launch of its platform, T-Cash’s network of 1,339 agents oversaw almost 350,000 users and more than 3 million transactions. Functionality of mobile money services had expanded and users could make withdrawals, deposits, transfer funds, pay bills, receive government aid or NGO grants. With TchoTcho Mobile, businesses were also able to transfer money directly into employee accounts

and accept mobile payments from customers for goods and services. In 2012, Digicel Group acquired Voila but decided to continue running the businesses separately.

Functionality of mobile money services has expanded and users can now make withdrawals, deposits, transfer funds, pay bills, and receive government aid or NGO grants. With TchoTcho Mobile, businesses can also transfer money directly into employee accounts and accept mobile payments from customers for goods and services. Yellow Pepper, who owns the proprietary payment technology used by Tcho Tcho Mobile, now offers its mobile banking and payments platform in nine different countries.

Success factorsThe Bill & Melinda Gates fund played a significant role in incentivising the development of necessary technology. Similarly, USAID’s technical assistance and management fund helped shape regulation and the industry sector.

Another significant enabling factor was the supportive role of Haiti’s Central Bank, which allowed for flexible customer registration and tiered KYC requirements.

References: Arnfield, R. (2012); Soussouvi, K. (2012); Dalberg (2012); International Finance Corporation World Bank Group (2011); Smith, G., MacAuslan, I., Butters, S. and Tromme, M. (2011); and USAID (2011)

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► Pakistan 2010-2013: Prepaid card system for flood response

Programme detailsIn 2010 Pakistan was hit with the worst floods in the country’s history submerging one-fifth of the country. To help displaced people cope with the catastrophic aftermath of the floods the Government of Pakistan (GoP) in collaboration with provincial governments developed the “Citizens’ Damage Compensation Programme (CDCP)”. This rapid response cash grant programme provided almost US$500 million to flood-affected households between 2010 and 2013 as cash transfers through commercial banks.

The programme was implemented in two phases:• Phase I (September 2010 to June 2011):

The aim was to cover urgent needs related to food, health, housing repairs, and debt re-payment. UBL Bank, Pakistan’s second largest private bank, was selected as bank partner to implement the government-to-person payment (G2P) programme due to its experience and capacity gained from a cash transfer pilot programme with the World Food Programme. UBL’s Omni banking platform, which had initially been developed for commercial purposes, was used to deliver cash to recipients via Visa pre-paid debit cards, known as WATAN cards. UBL’s existing Omni technology platform was utilised for card issuance, registration and cash withdrawals. WATAN card registration centres were set up, in which the GoP utilised Pakistan’s biometric National Database and Registration Authority (NADRA) to register all beneficiaries and issue new national ID cards if needed. Possession of a national ID card was a precondition for registration in the WATAN card programme. Beneficiaries collected funds from ATM machines or designated Points of Sale.

• Phase II (June 2011 to June 2013): Two more banks, HBL and AlFallah, participated in phase II. The aim was to assist the GoP in strengthening the implementation of the CDCP to further support the cash grants

needed for the recovery of lost livelihoods. US$426 were provided in two tranches; allowing beneficiaries to spend the funds on basic necessities of life such reconstruction of their houses, buying livestock or paying back accumulated debt.

While in Phase I UBL was selected as the sole commercial partner bank due to its prior experience in CTPs, the criteria for Phase II were expanded to include banks with networks at provincial level and experience in operating cash transfers to unbanked individuals and households.

Programme resultsA study by the World Bank in 2013 found that the WATAN card platform was able to deliver payments relatively effectively and securely. It delivered impressive logistical and administrative achievements with around US$374 million in cash grants dispersed to more than 1.6 million households across Pakistan during Phase I and an additional US$337.6 million in Phase II.

Around 70 percent of the programme’s beneficiaries expressed a desire to transfer the WATAN card into a permanent bank account where they could save money. The significant potential for branchless banking and account-based services such as social cash transfers was recognised by the Bill & Melinda Gates Foundation’s Financial Services Programme, which provided grants to UBL’s Omni Service.

Private sector partners’ commitments and business opportunitiesInvolved private sector partners not only provided e-payment services but also acted as active partners in aiding the speed up and improvement of the programme. UBL Bank and Visa developed training materials and covered a significant part of the costs. The three Partner Commercial Banks (PCBs) were responsible for delivering cash transfer payments to the CDCP’s beneficiaries and waved bank fees.

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As an example, UBL invested in increasing it network of from approximately 1,800 to over 6,000 and established a new international supply chain to produce the required number of Visa cards. UBL considered its US$1.7m investment cost to have potential longer-term benefits, such as proving its commitment as a responsible business, the opportunity to speed up the roll out of its Omni agent network, as well as the ability to work on future G2P programmes.

In fact, involvement in the first CDCP pilot gave UBL a competitive advantage. The bank is now a primary implementing partner for the GoP’s Benazir Income Support Programme (BISP), which is to date the largest cash transfer programme in the country, paying approximately US$12 per month to more than 2.5 million women.

UBL Bank developed its own in-house mobile banking solution without an MNO partner, meaning this system can work across various MNO networks. This innovative technology not only aided UBL to assist in the G2P programme but also represents a vast market potential.

Bank Alfalah said that its participation not only expanded its business reach by providing the under-banked segments with low-cost formal financial services and building its capacity to work on future G2P programmes, but also inspired its staff to help the bank strive to be a socially responsible business.

Success factors The programme successfully overcame significant challenges in rapidly deploying an unfamiliar system to over a million households across a large, mainly rural population in a country where only 12 percent of the population had access to formal banking facilities. In doing so it benefited from the following preconditions: • Pre-existing payment agent networks and

partners with experience in executing G2P CTP programmes were important factors enabling a smooth programme set-up and implementation.

• Two key factors that helped extend the programme’s reach to beneficiaries that previously were not formally registered included the free-of-charge issue of over 400,000 new national ID cards by the Pakistan National Database and Registration Authority and the rapid roll out of biometric screening equipment across all WATAN card registration centres.

• The Visa system, employed by all three banks, was familiar to bank partners, regulators and vendors and thus helped reduce set-up time.

The large-scale humanitarian programming in Pakistan coincided with UBL’s plans for rapid expansion of their branchless banking model, which lead to mutual benefits.

References: Pakistan National Database and Registration Authority (2012); Singapore Red Cross (15 September

2010); Smith, G., MacAuslan, I., Butters, S. and Tromme, M. (2011); and The World Bank (2013).

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► Philippines 2012: Pre-paid card system for tropical storm response

Programme detailsAction Against Hunger or ACF International (ACF) is a global humanitarian organisation committed to ending world hunger, save the lives of malnourished children and provide communities with access to safe water and sustainable solutions to hunger.

In 2012 ACF entered into a partnership with Citibank to develop a customised prepaid card system that would effectively transfer cash to communities affected by tropical storm Washi (locally named Sendong) and meet stringent donor requirements.

The system had to disburse funds to over 2,000 typhoon victims within one month that were to be exclusively used to purchase food items from a specific retailer. It had to ensure that no misappropriation of funds occurred and enable ACF to provide a full account of expenditures and the return of any unused funds.

ACF decided on an electronic cash transfer solution that would pose fewer security risks to its staff and the programme beneficiaries in comparison to the direct distribution of cash.

To meet the accountability and transparency requirements, Citibank established a closed-loop system where prepaid cards could only be used at the designated grocery store. Cards expired on the programme end date and could no longer be used.

Citibank was also able to help ACF overcome a key obstacle in emergency CTPs, which is the need to comply with know your customer (KYC) requirements in the absence of government-issued identity cards. In order to comply with

the Philippines Central Bank’s KYC requirements, Citibank worked with ACF on a simple process where ACF assisted beneficiaries to complete an application form with their photograph attached. The completed application form with information on the latest address and beneficiary photograph was then sufficient for the State Department of Social Welfare and Development to attest the identity of beneficiaries who did not possess or had lost ID documents.

Programme results2,000 cards were issued loaded with a total amount of PhP860 (US$20) and an acceptance rate of 100 percent. The customised prepaid card system proved to be reliable and robust. Cards were issued to beneficiaries within two-and-a-half weeks and no technical difficulties were encountered during the programme period.

Business opportunitiesCitibank presented a good fit for this programme as it had a previously developed prepaid card product that could be adapted to the programme’s requirements. Entering the partnership with ACF allowed the firm to explore a new application of the product and gain knowledge on limiting its usage to certain merchants and product groups with merchant category code selection being key component of ACF’s programme.

Success factorsThe timely approval of relaxed KYC requirements was key in implementing the programme soon after the disaster had hit. ACF’s ability to provide a complete list of targeted beneficiaries helped speed-up negotiations with the State Department of Social Welfare and Development.

References: Citigroup, Inc. (2013) and Javellana, M. Personal interview (25 August 2014)

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Picture: Oxfam 2013

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7. Business opportunities

Financing for CTPs from global humanitarian funding sources is increasing, indicating the growing relevance of cash transfers in disaster response and recovery efforts. The Cash Learning Partnership (CaLP) – a coalition of five humanitarian agencies including Oxfam GB, the British Red Cross, Save the Children, the Norwegian Refugee Council and Action Against Hunger/ACF International - are working to improve the quality of emergency cash transfer and voucher programming across the humanitarian sector. They support capacity building, advocacy, research and information sharing as a way to promote CTPs as an effective tool to deliver assistance in times of crisis. Their work facilitates and coordinates the implementation of quality CTPs and supports implementation at scale. Donor funding and financial incentive schemes have been key drivers in the development of emergency CTPs and opening up new opportunities for agencies to collaborate with the business sector.

At the same time governments throughout the region – including China, Pakistan, Philippines, and Sri Lanka - are using CTPs in their disaster management efforts and likely drive interest from other nations.

The growing interest in CTPs opens opportunities for businesses to establish themselves as effective partners in the development and delivery of market-integrated response efforts. Disaster preparedness, response, and recovery have become strategic CSR issues for businesses invested in the region’s disaster-prone economies and for many also an important business opportunity.

The following outlines the key drivers and business opportunities of working with the humanitarian sector in emergency CTPs.

Meeting stakeholder expectationsA 2013 survey of more than 10,000 citizens in ten countries found that a majority of global consumers believed companies must play a role in natural disaster response and long-term recovery and that their engagement needs to go beyond the provision of funds and short-term engagements and instead should leverage unique business assets.16 Businesses from numerous sectors hold specific skills sets, expertise and resources critical in developing and implementing emergency CTPs. Collaborations with humanitarian agencies for emergency CTPs allows businesses to engage their employees in ways that will expand their knowledge and develop leadership skills. The benefits of coordinated, strategic employee volunteer programmes are well documented and include talent retention and attraction and employee motivation.

When a disaster strikes, businesses are well positioned to channel their desire to help into meaningful engagements for employees and business partners and thereby proof their commitment for effective and sustainable disaster response contributions and involvements.

16 The 2013 Cone Communications Disaster Relief Trend Tracker is an online survey among a demographically representative sample of 10,287 adults in ten 10 countries, including the United States, Canada, Brazil, the United Kingdom, Germany, France, Russia, China, India and Japan. For more information see http://www.conecomm.com/2013-disaster-relief

Picture: Suraj Shakya, Nepal for Mercy Corps

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Exploring new market segmentsWith the speed of new technology developments as well as the growth of new financial and nonfinancial intermediaries, banks need to become more innovative if they do not want to lose customers or miss out on the opportunity to tap into new markets before their competitors. Often communities engaged by humanitarian cash transfer programmes fall outside the target client segment of financial institutions or mobile service providers. They are usually perceived as “low value customers” with high transaction costs of providing formal financial services.17 They transact in very small amounts, are sometimes illiterate and often live and work in remote or hard-to-reach places.18

Yet, vulnerable communities are in great need of banking services to protect their livelihood assets from potential shocks. Many of them already use informal financial services such as moneylenders or informal savings groups, or savings in the form of tangible objects such as jewellery, animals or supplier credit.19 Many of them will also regularly spend disposable income on airtime or other mobile relates services, as they perceive these functions to be a priority expense. 20

Pre-paid cards and mobile e-payment services can drastically reduce costs while providing much needed services. Engaging in emergency cash transfer programmes provides businesses

the opportunity to learn from humanitarian organisations who have been working with these communities over a long time. Not only does it allow service providers to gain more in-depth insight into a new customer base, but also aids local markets in the long run by using local merchants as agents.

• Haiti’s 2010 incentive prize competition model showcases how the private sector is able to transform otherwise potentially high-risk investments into long-term high-reward technological innovations. In the aftermath of Haiti’s 2010 earthquake mobile money proved not only effective for the immediate humanitarian context, but when paired with financial education gave way to longer-term goals of providing financial access to those outside of the banking system.21 Between the two Haitian service providers, Digicel and Voila, over 800 mobile money outlets were created; helping to rapidly expand financial services to the Haitian population, while service providers were able to expand their networks to small, geographically concentrated communities.22 There is a clear business case for engaging in cash transfer programmes that ultimately target communities outside the typical client group.

17 Lesher, N. and Soussouvi, K. (2014)18 Ibid. 19 Martin, C. (2012) 20 Lesher, N. and Soussouvi, K. (2014)21 Sossouvi, K. (2012) 22 Goel, V., Goss, S. (2012)

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Co-creating innovative solutions and new services By helping to tackle challenges encountered in past CTPs businesses have been able to create new services and products, often leveraging their humanitarian partners’ insights of local markets and communities.

• Providing services to the large number of illiterate people in disaster prone areas: In the case of Haiti’s 2010 earthquake, T-Cash and Mercy Corps implemented a number of cash transfer programmes using picture-based training methodologies to address illiterate beneficiaries and were able to successfully reach well over 8,000 rural Haitians.23

• Accessing rural or remote communities: A partnership between the Philippine Disaster Recover Foundation (PDRF), Smart Communications and Land Bank from January to June 2012 helped deploy Land Bank branches and cash cards for residents in unbanked and disaster affected areas. The collaborative effort succeeded in deploying cash grants to over 3.1 million beneficiaries nationwide.24 In 2013 to directly support the rehabilitation efforts in the aftermath of Typhoon Yolanda, the partnership developed mobile ATMs which

aided in the distribution of cash grants to beneficiaries under the governments Pantawid Pamilyang Pilipino Program (4Ps).25 The mobile ATMS are offsite and can be relocated from one location to another via customised vehicles.

The emergence of mobile money accounts with less stringent KYC requirements allows MNOs to explore a new customer base and offer attractive accounts for the poor.

• MTS, an Indian mobile telephone services brand, has partnered with Utiba, a global supplier of mobile financial transaction platforms for mobile operators and financial institutions, to create e-wallets for the unbanked population of India. The partnership aims to offer mobile-based financial services such as bill payments and P2P money transfers whereby a remittance firm transfers money onto a beneficiary’s phone, allowing the beneficiary to go to any registered merchant to collect cash, make a purchase or transfer money to another e-wallet. MTS believes that these services will have a great impact on the Indian market.26

23 Martin, C. (2012) 24 Land Bank of the Philippines (2014) 25 Ibid. 26 Business Standard (2014)

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Improved government relationships and commercial engagementsEmergency CTP systems backed by donor funding offer businesses a valuable way to gain experience and expertise, and are potential entry points to long-term commercial engagements and improved relationships with local governments. Governments throughout the Asia-Pacific region are looking to assert control over the management of emergencies within their borders and are increasingly looking for domestic capacities to respond to natural disasters. A number of countries have already developed and implemented their own emergency CTPs and the growing number of

social protection schemes throughout the region drives further interest in utilising these schemes for post-disaster CTPs.

• After Pakistan’s 2010 floods, UBL Bank was selected as bank partner to implement the government to person payment (G2P) programme due to its experience and capacity gained from a cash transfer pilot programme with the World Food Programme. The G2P programme gave UBL the opportunity to speed up the roll out of its Omni agent network, and has since been deployed in other emergency contexts. (See Pakistan prepaid card system case study on p.19)

Picture: Manisha Shrestha, NEAT

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8. The way forward: preparedness for market-integrated response

E-payment systems for emergency CTPs provide an effective, secure and transparent process for the timely disbursement of monetary assistance after emergencies. Developing and launching e-payment systems for emergency response operations can take between six to two years. Community needs after a natural disaster, however, are immediate.

There is thus a great need for all involved to build preparedness for emergency cash transfer mechanisms well before a natural disaster occurs. In the region’s disaster-prone economies the business sector plays a key role in supporting preparedness for timely CTP through:

1. Supporting early market mapping: Early market mapping helps identify CTP

participants, capacities and resources well in advance and allows making necessary preparations. This includes, for example, listing of available transfer services and agent networks.

2. Building a common understanding of humanitarian needs and possible technological solutions:

Technology companies, MNOs, finance institutions and merchants need to understand humanitarian needs in order to identify necessary adaptations of systems, products and services to better meet CTP requirements.

3. Establishing pre-agreements between key CTP partners:

The set-up time of cash transfer mechanisms is significant, taking as long as two to six weeks. Pre-agreements can reduce set-up time and enable discussions that help identify “who is best suited to do what”, capacity gaps and other strategic issues such as change of know-your-customer requirements. It is vital in identifying necessary adaptation of internal operational procedures, e.g. related to administration and finance, and making other necessary arrangement for ‘real time’ implementation.

4. Supporting piloting of cash transfer mechanisms:

CTP mechanisms and collaborations can be field-tested through small-scale, well monitored pilots. Small-scale pilots are effective in developing capacities of companies that have not been involved in CTPs previously and thus lack understanding of necessary contracting, set-up and implementation procedures. It can provide crucial information about constraints for large-scale implementation. Specific CTP features to be tested during pilots include set-up of distribution points in areas previously not served by a specific network and the use of different transfer technologies for various purposes, e.g. voucher through mobile phone transfer or prepaid cards

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5. Awareness raising: While CTPs have become an effective

humanitarian tool, public understanding and awareness on the role of cash transfers in disaster response and recovery are still low. The business sector can help build communication strategies and initiatives to build CTP understanding of the general public and sensitise all government levels, donors and emergency personnel from various sectors, e.g. the military.

6. Promoting best practice: Documenting and circulating best practice

examples is vital in building evidence for the effective and appropriate use of CTPs in different settings. Businesses can support evidence-based research, communicate experiences of own CTP engagements and help build fora for information exchange and learning. There is a particular need to better document CTP benefits through impact assessments and beneficiary satisfaction surveys. At the same time, there is a need to build the case for collaboration between the business and humanitarian sector and build understanding of each other’s motives, ways of working and timescale and thus break-down preconceptions and distrust.

7. Advocating for CTPs at scale: To date CTPs are driven by individual

humanitarian agencies with their specific mandate and mission, often implemented ad-hoc during or after a large-scale disaster. There is great potential for implementing CTPs at scale that go beyond the mandate of individual humanitarian agencies and are led by national governments by, for example, utilising existing safety net programmes. In this context the business sector can not only provide technical expertise to governments but also plays a role in initiating cross-sector communication and collaboration.

8. Applying technological advancements to humanitarian needs:

The rapid advancement of technology opens new possibilities for disaster response and recovery interventions and businesses play a critical role in making technological advancement available to the humanitarian and government sectors. With technological services and business expertise becoming more relevant to response and recovery, companies with CTP experience are well placed to play a greater role in cross-sector collaborations and to develop new services and products geared to humanitarian needs.

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List of References

Alexandre, C., Chang Eisenhart, L. (2013) “Mobile Money as an Engine of Financial Inclusion and Lynchpin of Financial Integrity”. Washington Journal of Law, Technology & Arts. Volume 8, Issue 3

Mobile Money Symposium. Retrieved from http://digital.law.washington.edu/dspace-law/bitstream/handle/1773.1/1200/8WJLTA285.pdf?sequence=4

Business Standard (2014) “MTS chooses Utiba to launch E-top-up services in India”. Retrieved from http://www.business-standard.com/article/press-releases/mts-chooses-utiba-to-launch-e-top-up-services-in-india-110011100111_1.html

Arnfield, R. (2012) “YellowPepper Aims for Financial Inclusion”. VRL News. Retrieved from https://www.partnersinprepaid.com/topics/articles/yellowpepper-aims-for-financial-inclusion.html?maincategory=TOPICS&subcategory=EMERGING%20MARKETS

Bank Alfalah (2014), “Branchless Banking G2P”. Retrieved from http://www.bankalfalah.com/branchless-banking/g2p/

Citigroup, Inc. (2013) “Citi Philippines and Action Against Hunger Cited for Prepaid Cards Issued to Sendong Victims” [Press Release 17 June 2013] Retrieved from http://www.citigroup.com/citi/news/2013/130618c.htm

Creti, P., (2013) “Case study: Oxfam market chain analysis after Haiti 2004 landslides’. Retrieved from http://www.oxfam.org.uk

Dalberg (2012) “Haiti Mobile Money: A point-in-time case study”. Retrieved from http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2012/06/dalberghmmicasestudy.pdf

Dahlberg (2012) “Plugging into Mobile Money Platforms: Early Experinces of NGOs in the field”. A focus note developed in partnership with the Bill & Melinda Gates foundation and input from HIFIVe and Mercy Corps. Retrieved from http://betterthancash.org/wp-content/uploads/2012/09/HMMI_-_Plugging_Into_Mobile_Money_Platforms_FINAL.pdf

Dupas, P., Robinson, J. (2010) “Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya”. Retrieved from http://www.econ.ucla.edu/pdupas/SavingsConstraints.pdf

Emergency Capacity Building Project (2011) “Emergency Food Security & Livelihoods 48 Hours Evaluation Toolkit” Retrieved from http://www.livelihoodscentre.org/livelihoods/portal.portal?_nfpb=true&_pageLabel=pages_documentDetail_page&section=Publications&nodeId=/Livelihoods/332007#wlp_pages_documentDetail_page

García Arabéhéty, P., (2012)“Good news from Haiti: first success story for the mobile wallet in Latin America and the Caribbean”. Retrieved from http://www.movilion.com/good-news-from-haiti-first-success-story-for-the-mobile-wallet-in-latin-america-and-the-caribbean/

Gelb, A., Decker, C. (2011) “Cash at Your Fingertips: Biometric Technology for Transfers in Developing and Resource-Rich Countries”. CGD Working Paper 253, (Washington, DC: Center for Global Development

Goel, V., Goss, S. (2012) “Case Study: Haiti Mobile Money Initiative Incentive Prize Competition”. Retried from http://www.innovationinthecrowd.com/examples/Haiti-mobile-money-initiative.pdf

International Finance Corporation World Bank Group (2011). “IFC Investment in Tcho Tcho Mobile Helps Bring Mobile Banking to Haiti”. IFC Press Release. Retrieved from http://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/industries/telecommunication/ifc+press+releases/newsflashplus_062111_tchotcho

Javellana, M. Personal interview (25 August 2014) Javellana, Miko, Business Manager, CTS - Wholesale Commercial and Prepaid Cards, Citibank Philippines

Land Bank of the Philippines (2014) “Landbank launches mobile ATMs for 4Ps beneficiaries”. News Archive. Retrieved from https://www.landbank.com/newsarchdetails.asp?id=500

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Lesher, N. and Soussouvi, K. (2014) “NGOs and Electronic Value Transfer Providers: Tips and Recommendations for Picking the Right Partner. Part I” Retrieved from http://solutionscenter.nethope.org/supersearch/#q/keywords=kokoevi&num=10&channel=&orderby=relevance&sort=desc&category=&inclusive_categories=no&pagination=P0

Martin, C. (2012) “Cash Transfers and Mobile Money: Making it Work”. CGAP Blog Report. Retried from http://www.cgap.org/blog/cash-transfers-and-mobile-money-making-it-workOxfam GB (2010) “The emergency market mapping and analysis toolkit” retrieved from https://data.unhcr.org/syrianrefugees/download.php?id=4343

Pakistan National Database and Registration Authority (2012), “Citizen Damage Compensation Programme” Retrieved from http://cdcp.nadra.gov.pk/.

The World Bank (2013) “Pakistan’s Citizens Damage Compensation Program (CDCP) Case Study”. Retrieved from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/08/26/000442464_20130826113735/Rendered/PDF/806210WP0P12680Box0379812B00PUBLIC0.pdf

Practical Action (2010) “The Emergency Market Mapping Analysis Toolkit” Copyright Oxfam GB 2010 Retrieved from http://emma-toolkit.org/wp-content/uploads/2010/08/Introduction-and-overview.pdfSingapore Red Cross (15 September 2010). “Pakistan Floods: The Deluge of Disaster – Facts & Figures of 15 September 2010”.

Smith, G., MacAuslan, I., Butters, S. and Tromme, M. (2011) “New Technology Enhancing Humanitarian Cash and Voucher Programming”, a Research Report commissioned by CaLP. Retrieved from http://www.cashlearning.org/downloads/resources/calp/CaLP_New_Technologies.pdf

Soussouvi, K. (2012) “Innovation in emergencies: the launch of ‘mobile money;’ in Haiti”. Humanitarian Practice Network. Issue 54. Retrieved from http://www.odihpn.org/humanitarian-exchange-magazine/issue-54/innovation-in-emergencies-the-launch-of-mobile-money-in-haiti

Soussouvi, K. (2013) “E-transfer in emergencies: implementation support guidelines” Research report commissioned by CALP emergencies: implementation Retrieved from http://www.cashlearning.org/resources/library/390-e-transfers-in-emergencies-implementation-support-guidelines

The Cash Learning Partnership (2011) “Reconnecting Zimbabweans to financial services through cash transfers”. Retrieved from http://www.cashlearning.org/news-and-events/news-and-events/post/5-reconnecting-zimbabweans-to-financial-services-through-cash-transfers

The International Recovery Platform and United Nations Development Programme India (2013) “ Guidance Note on Recovery: Livelihood” Retrieved from http://www.in.undp.org/content/dam/india/docs/guidance_note_on_recovery_livelihood.pdf

The World Bank (2013). “Pakistan’s Citizens Damage Compensation Program (CDCP) Case Study”. Retrieved from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/08/26/000442464_20130826113735/Rendered/PDF/806210WP0P12680Box0379812B00PUBLIC0.pdf

USAID (2011) “Haiti Mobile Money Initaitive: What is the Haiti Mobile Money Initiative”. USAID Fact Sheet. Retrieved from http://www.usaid.gov/news-information/fact-sheets/haiti-mobile-money-initiative

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Picture: Suraj Shakya, Nepal for Mercy Corps

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This business briefing was developed by CSR Asia in partnership with Oxfam GB in Asia.

Oxfam is an international confederation of 17 organisations networked together in more than 90 countries, as part of a global movement for change, to build a future free from the injustice of poverty.

CSR Asia builds capacity and promotes awareness of corporate social responsibility (CSR) in order to advance sustainable development across Asia. Through our expanding global presence and our team of specialists, we provide cutting-edge research, strategy advisory, networking and executive education services with an informed understanding of evolving CSR issues on the ground.

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For feedback or more information please contact: CSR Asia Office A, 15/F, Wing Cheong Commercial Building, 19-25 Jervois Street, Sheung Wan, Hong Kong Telephone: +852 3579 8079 Fax: +852 3579 8080 enquiry@csr-asia.com www.csr-asia.com

Disclaimer:The information contained in this publication is provided for general purposes only. While every effort has been made to ensure that the information is accurate and up to date at the time of publishing, CSR Asia accepts no responsibility for any loss that may arise due to information contained in this publication.

Cover Picture: Oxfam 2013

Picture: Suraj Shakya, Nepal for Mercy Corps