the case for customer knowledge and transparency
TRANSCRIPT
The Case for Customer Knowledge and Transparency
October 2009
Proprietary and Confidential
How did we get here?
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Coordination and Efficiency:
Transparency
Community
Targeted Products/Services
Today, Value Transfer involves many disparate entities
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Mobile Network Operators
Government
Informal Systems
Infrastructure
Technology Partners
RSPs/MTOs
Other FSPs
Banks
NGOs
o Information for decision-making
o Formalization and overcoming last mile challenges
o Technology tools for money and other forms of value
o Role in population assistance and diaspora community building
Connecting the dots – Helping to create an efficient ecosystem
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MNOs
Government
Infrastructure
Tech Partners
NGOs
Banks RSPs/MTOs
Other FSPsInformal Systems
Remittance inefficiencies exist on multiple levels
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INFORMATIONMigrant
communities are disconnected and
cannot share information on
remittance prices & methods; erodes market efficiency
TRANSPARENCYWhat would be the impact of more money reaching those to whom it is sent?
SECURITYInformal trust networks have
inherent uncertainties
Inefficiencies
Could be worth 75% to 250%+
of existing formalvalues
CONTROLSender does not know how remittance is being spent
Change is not automatic; in the case of Mexico, government intervention and US-Mexico alliances contributed to changing the marketplace
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Directo a Mexico launches, operated jointly by the US Federal Reserve and Banco de Mexico
Catalysts and interventions to drive the ecosystem
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Benefits of/for: Consumers Businesses Public Sector
TransparencyBringing down costs of
formal transfers
Competitiveness draws in
more formal transfers
Ability to track beyond
regulatory minimums to
better protect and
provide assistance
CommunityCross-pollination –
sharing of information
Insight into marketing to
diaspora groups
Communication for
improved lives/livelihood
Access to targeted products/services
Develop additional
proving grounds, pilot
sites
Innovate, creating best in
class offerings
Allocate resources based
on relevant issues and
needs
Levers to
collaboration
Price and feature
trade-off
Addressing true
needs
Cost
Smart innovations
Calculations of
contribution
Managing risk
Safety
Broadening
awareness/scope of
impact
Sustainability
Benefits
• Diaspora ties – building goodwill ambassadors
• Increasing remittance and other transfers of value
• Government assistance role
• Modernization and technological improvements
• Data and learnings about diaspora behaviours
• Foundation for more efficient systems
Why build a value transfer knowledge portal?
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Money
Airtime
Utilities
Goods
Challenges
• Online / Offline divide
• Smaller MTOs
• Fee structure intricacies
• Reluctance in sharing
• Difficulties in reaching decision-makers
• Building consumer awareness
• Regulatory distinctions across geographies
“The most effective way of reducing prices in a corridor is to activate competition.” -Dilip Ratha, World Bank, 2006
Search functionality on a value transfer portal can be set up to meet the language and other needs of target audiences as relevant
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Simple user interface for input of search request; results show sending and receiving options as well as the fee and foreign exchange rate for each service provider and cost to send the amount desired
Not all migrants have access to a credit card or a bank account, thus the results can show providers that allow for cash payments
Some remittance receivers do not have access to a bank account or cannot physically go and pick up the money, thus the results can show if a provider allows for cash receipt or home delivery for example
Devised for use for more than money transfer –also airtime, bill payment, other forms of value
