PRESENTATION TO THE CARIBBEAN ASSOCIATION

OF INDIGENOUS BANKS

Georgetown GuyanaNovember 12 – 15, 2007

CARVING OUT OUR SPACE IN THE GLOBAL

REMITTANCE MARKET

Presented by: Mr. Andrew Cocking, Deputy Group President International Business

HISTORICAL PERSPECTIVE

• Who sends remittances & why?• Traditionally, migrant populations from less developed

countries • Major players

• Western Union• Moneygram

• Delivery mechanisms• Delivery of cash or cheques through agent locations in

receiving countries• Regulation

• Level of regulation non existent to low• Use of technology

• Limited, but has been increasing with customer demand for service & competition

Agents of Change in the Remittance Environment

Significant changes are taking place in the following areas:

• Regulatory

• Economic

• Technology/Social

REGIONAL INFLOWS – 2006 (US$ - Millions)

Antigua 9

Barbados 140

Aruba 12

Belize 46

Dominica 4

Dom. Rep. 2717

Grenada 22

Guyana 201

N. Antilles 8

Jamaica. 1783

St. Lucia 2

Haiti 985

St. Vincent & Grenadines 5

Suriname 4

T&T 87

Total Inflows 6025

REGIONAL REMITTANCE OUTFLOWS – 2006 (US$ M)

Dominican Republic 26

Grenada 2

Guyana 55

Haiti 59

Jamaica 394

St. Kitts and Nevis 2

St. Lucia 1

St. Vincent and the Grenadines 2

Suriname 9

Aruba 68

Bahamas, The 144

Barbados 40

Netherlands Antilles 59

Total Outflows 816

California

New YorkTexas

Florida

Illinois

New Jersey

Others

Georgia

California

New York

Texas

Florida

Illinois

New Jersey

Others

Georgia

US Remittance Flows by State

IMPORTANCE OF REMITTANCE TO NATIONAL DEVELOPMENT What role do we wish to play?

• Remittances are the largest source of external financing

for developing countries

• Remittances exceed foreign direct investments

• Remittances exceed official aid

• Remittances may be used as collateral in the micro

finance sector

• In some instances remittances exceed 5% of GDP

Roadmap into Remittance services for Indigenous Banks

• Collaborative Effort!

• Develop our own remittance centres in the Diaspora

• Control the local distribution

One Caribbean Virtual Banking Platform“Bank in a Box”

Services available to Deploy Send money to family globally

Person to person

Bank account to bank account

Mobile device to mobile device

Mobile Banking Bank Account to Bank Account, Bank Account to Person, Bank Account to Card, Person to

Bank Account, Person to Card, Card to Bank Account, Card to Card

Mobile Bill Pay, Mobile Remittances, Mobile Merchant Services

Pay your taxes and bills, or your family’s taxes and bills locally or from abroad

Make investments:

Local and Overseas NGO programs

Investments offered by banks and other FIs

Government issued bonds

Charitable Donations

Government and local business payroll

Purchase cell phone minutes for your family locally or from abroad

OPPORTUNITIES FOR BANKS

• Revenue from Remittance Fees• Foreign Exchange Revenue• Additional Revenue Stream from Mobile Banking• Increase in Customer Base due to the increase in Service Offerings• Opportunity to cross sell/up sell other financial products and

services• Leveraging existing physical and electronic networks thus reducing

cost of ownership• Access to the Caribbean Diaspora Globally• Settlement on a Ubiquitous Caribbean Network• Bring Innovative Services to the Caribbean • Create a differentiation amongst Caribbean and Foreign Banks

LET US WORK TOGETHER TO CARVE OUT OUR SPACE IN THE

GLOBAL REMITTANCE MARKET!!

Thank you

Q & A