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Jonathan Capal Regional Manager Developing Markets Associates Pty. Ltd.

www.sendmoneypacific.org An Australian and New Zealand Government led initiative to reduce the cost of remittances to the Pacific. Jonathan Capal Regional Manager Developing Markets Associates Pty. Ltd. Transparency.

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Jonathan Capal Regional Manager Developing Markets Associates Pty. Ltd.

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  1. www.sendmoneypacific.orgAn Australian and New Zealand Government led initiative to reduce the cost of remittances to the Pacific Jonathan CapalRegional Manager Developing Markets Associates Pty. Ltd.

  2. Transparency • Transparency is the first General Principle for Remittances and was a driving force in the development of www.sendmoneypacific.org • ‘Transparency in remittance services, combined with adequate consumer protection helps to foster a competitive and safe market for remittances.’ • ‘It is useful for senders (and receivers) to be able to have full information about the service in advance’

  3. Transparency • Transparency is the first General Principle for Remittances and was a driving force in the development of www.sendmoneypacific.org • ‘Particularly relevant is transparency about the total price and speed of the service’. The total price includes the fee, the foreign exchange rate and any charges paid by a receiver. • ‘At the moment the market for remittances is not always fully transparent’ • ‘Even if individual RSPs are fully transparent it may not be easy for end users to compare the price of different services.’

  4. Remittance price comparison websites

  5. Price comparison websites - Who benefits? • Consumers (Diaspora communities) • Authorities – regulators and governments • Private sector – RSPs • Academia

  6. SendMoneyPacific • AusAID and NZAID commissioned DMA to develop SendMoneyPacific in 2008 as part of a drive to reduce the prices of remittances and to bring transparency to the market

  7. SendMoneyPacific • Easy to use for all Pacific communities served by the website • Formally launched in Australia and NZ in March, 2009 • Provides detailed price comparison information from Australia and New Zealand to Fiji, Kiribati, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu

  8. Australia – Pacific Remittance Costs • Since data was first collected for SMP in early 2009, costs have continued to fall from Australia to the eight featured Pacific countries • Australia: • By July 2012, overall costs for sending AUD 200 down from AUD 46.40 to AUD 40.05 • Representing an actual percentage decline of 13.64% New Zealand: • July 2012 – overall costs for sending NZD200 down from NZD 37.29 to NZD 30.15 • Actual percentage reduction of 19.14%

  9. Remittance Costs • MTOs have led the way in reducing costs, particularly in the competitive Fiji, Samoa and Tonga corridors. • Driven by fee reductions

  10. Remittance fees to Fiji

  11. Remittance fees to Fiji

  12. Remittance fees to Samoa

  13. Remittance fees to Samoa

  14. Remittance fees to Tonga

  15. Remittance fees to Tonga

  16. Achieving the 5 x 5 objective • The G8 set a target in 2009 to achieve a reduction of the global average costs of transferring remittances from the present 10% to 5% in 5 years • Australia to Fiji • Transfers of AUD 500 sent via MTOs to Fiji now stand at 5.87% • New Zealand to Fiji • NZD 500 transfers via MTOs are also closing in on the 5% figure, currently standing at 5.22%

  17. New remittance products and providers • Many new RSPs and products helping to accelerate decline in costs • Online and mobile telephone based remittance systems ensuring greater convenience & lower costs • Now possible for senders & receivers with bank accounts to be able to remit at a cost below 1% • Prepaid bank remittance card products – first from NZ, and now Australia helping to lower costs, and increase competition amongst banks – good for the consumer

  18. Diaspora engagement • First price comparison website to feature a dedicated community information section, ‘Pacific Communities’. • DMA staff actively engage with Pacific communities in Australia and New Zealand on a daily basis • Community workshops and event participation are at the forefront of this community engagement

  19. Diaspora engagement • Goals: • To reach as many members of the community as possible • To reach community members without internet access • To provide up to date information on the latest remittance price information • A full range of marketing and promotion tools are used to increase and maintain awareness

  20. Diaspora engagement • Radio • Best platform to engage with older Pacific communities • Interviews, discussions and SMP radio announcements featured broadcast on local and national radio stations in Australia and New Zealand • MoneyPACIFIC and SMP joint radio campaign in the Pacific has helped to make both projects a household name across the region • Community broadcasters update their listeners on the latest remittance costs

  21. Diaspora engagement • Print • SendMoneyPacific featured in Australian and New Zealand mainstream newspapers, and many Pacific titles • SendMoneyPacific advertisements featured in annual MoneyPACIFIC calendars since 2010 - reach over 100,000 Pacific people every year

  22. Diaspora engagement • Online • Online promotion of SMP expanded significantly since 2009 • Online banner advertisements have featured on Pacific websites • Social Media: Facebook is the biggest driver of Pacific traffic to SMP

  23. Diaspora engagement • Events and Festivals – SMP has promoted itself at a variety of events including Pasifika Festival in 2010, 2011 and 2012 – the largest Pacific festival the world • Information leaflets & other tools –generic & country specific – published in English, Samoan, Tongan and Bislama New Zealand PM, John Key and Hon Georgina te Heu Heu, Minister for Pacific Island Affairs at Pasifika, 2010

  24. Website developments • In late 2010, SendMoneyPacific received certification from the World Bank’s standards for remittances databases • To date, this is one of only five databases to have received such an endorsement • As part of the certification process, the website was upgraded and the inclusion of additional cost information was added for the benefit of the consumer • Visitors to the website can now find out an operator’s exchange rate and margin, and also be made aware of possible additional receiver fees

  25. Website developments • As part of the re-launch, a micro-site, directly accessible from SMP, was developed for MoneyPACIFIC • The MoneyPACIFIC web pages provide an overview on the evolution of the financial awareness project • The tips featured in the MoneyPACIFIC financial education calendar are all featured on the website • MoneyPACIFIC’s web pages has added value to the MoneyPACIFIC project, providing an online facility designed to allow for future expansion and greater interaction from across the Pacific

  26. Improvements & suggestions • More information online available in Pacific languages • Smart phone/tablet app • Cost comparison delivered by SMS • AusAID, NZAID and large FI collaboration to promote a new free or at least cost-only service to provide remittances to the South Pacific • Pacific events and historical dates calendar

  27. Improvements & suggestions • Daily updates of costs • More send and receive countries • More price points, e.g. $100 or less • Comparison of airfares to the Pacific region • SMP to broaden its focus as a wider financial inclusion hub

  28. Looking to the future • Traffic has risen to a level that can help to make SMP at least partially commercially viable • Industry and non-financial private sector present revenue opportunities to offset public funding of SMP • Expansion of SMP to include further key send corridors could ensure that almost all Pacific remittances are covered • Lower costs in existing and new Pacific corridors could alleviate financial stress in the Pacific region

  29. Looking to the future • Redevelopment of SMP website can ensure maximum reach across all platforms – e.g. smart phones and tablets • Closer cooperation between donor agencies, government and private sector can ensure that collective measures to address remittance costs can help propel costs lower. Publishing and dissemination of information remains the most instantly visible tool • SendMoneyPacific platform now the most widespread Pacific financial education tool – closer integration with other financial inclusion and remittance initiatives will benefit all and will lower resource costs

  30. Looking to the future • Additional SMP price comparison pages for receive country financial services – centrally hosted at SMP with content displayed on e.g. Central Bank websites • Provides a necessary service for receive country populations • Research can be locally conducted providing research and education prospects for people in remittance receiving countries

  31. Contact Details Jonathan Capal Regional Manager Developing Markets Associates Pty. Ltd. Jonathan.capal@developingmarkets.com www.developingmarkets.com www.sendmoneypacific.org Suite 213, Level 2 61 Marlborough Street Surry Hills, NSW 2010 Australia t: +61(0) 02 9699 0079 m: +61(0) 414 352 132

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