Remittances – a growth story Leon Isaacs Director Developing Markets Associates...
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Remittances – a growth story Leon Isaacs Director Developing Markets Associates [email protected] 07909938305
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Transcript of Remittances – a growth story Leon Isaacs Director Developing Markets Associates...
Slide 2
Contents
o Global contexto The UKo How remittances worko What does the customer actually wanto Current trends
o UK Remittances Task Force – leading the
worldo The future – challenges and opportunities
The Global Market
o US $ 232 billion (source World Bank)
o Growth rate 8% p.a.
o North – South flows 36%
o South-South flows – 30%
o Migration is the key driver – 191 million (source UN)
The importance of remittances can not be underestimated
0
25
50
75
100
125
150
175
19901991199219931994199519961997199819992000200120022003
2004e
2005e
$ billionPrivate debt and portfolio equity
FDI
ODA
Recordedremittances
Source World Bank GEP 2006
The UK - Migrants
2001 Census data
― 4,301,280 born overseas
― 12% North West/Yorks
― 21% Midlands/East England
― 54% London and South East
― 13% Rest
Where were the migrants born?
Top 10 Countries of birth
Australia
I taly
Kenya
South Africa
USA
Caribbean
Germany
Pakistan
I ndia
Bangladesh
0 100 200 300 400 500
ASC24%
Africa19%
LAC10%
Asia9%
Eastern Europe
5%
N America
5%
Middle East4%
Australasia3%
Europe21%
‘000 people
Slide 7
Where the money goes
1
32
45
1
Estimated £2.3 billion
Slide 8
How remittances work
Slide 9
What senders want
o Securityo Price
o Fairo Transparento Certain
o Convenienceo Close to locationo Opening hourso Ease of making
transactiono Speed/certainty
o Quicko Time known
guaranteed
Slide 10
Global trends
o Massive interest from Governments and
development organisations
o Increased regulation
o Consolidation among money transfer
companies
o Greater interest from banks
o Technology beginning to impact
o Good news – prices are beginning to fall
Slide 11
UKRTF – leading the world
Private sector driven, but with public sector funding.
OBJECTIVES:o Greater transparency in the UK remittances market o More competitive remittance markets o Better informed remittance consumers o Greater use of formal (versus unlicensed) money
transfer channels o Reduced financial exclusion (in both UK and developing
countries) o Better information for government and providers o More streamlined and better coordinated regulation of
money transfers
Slide 12
UKRTF – current projects
1. Further research – focused on informal sector
2. Regulation – understanding and influencing policy and uniting the industry
3. Improving the availability of information for consumers
o To comply with regulations
o To provide a customer focused standard
o Website
4. Support for smaller MTOs
5. Implementation of a customer charter
Slide 13
Challenges
o How to deliver the positive aspects of informal remittances in the regulated market
o Inclusion of remittances in the financial system
o Continue to provide consumers with the information that they need to make the right choice
o Change the focus from the method of transfer to what the funds are used for when they arrive
Slide 14
Mid-term report on the industry
Making progress but could do better
