DOMESTIC MONEY REMITTANCES SERVICE MARKETING

1. DOMESTIC MONEY REMITTANCES SERVICE MARKETING

2. Opportunities in Domestic Remittances • Strong existing demand and volume: A research shows migrants send monthly amounts between Rs.1,000 to Rs.3,000 Source: MicroSaveresearch on remittances in India (Punjab-Bihar/UP corridor): http://www.microsave.org/research_paper/understanding-remittance-networks-in-punjab-and-uttar-pradesh

3. Current Remittance Channel • Increasingly, migrants use bank accounts to transfer money home. • Increasing financial inclusion changing the face of informal channels. Tappawalas (in Orissa)and courier services use bank accounts to move money between places giving rise to bank couriers. • However, high levels of dissatisfaction exists with current channels of usageincluding POs

4. Current Remittance Channels Source: MicroSave research on remittances in India (Punjab-Bihar/UP and Gujarat/Bihar/Orissa corridor): http://www.microsave.org/research_paper/understanding-remittance-networks-in-punjab-and-uttar-pradesh http://www.microsave.org/research_paper/understanding-remittance-networks-in-gujarat-orissa-and-bihar

5. Remittance Channel Preferences • However, this number hides the large hindrances remitters face in using banks including: • Long lines and lengthy processing time • Difficulty of opening bank account • Inconvenience • Lack of doorstep delivery • Not surprisingly, formal and informal have completely opposite strengths and weaknesses

6. Current Status of Domestic Remittance • Formal and informal channels of remittance co-exist • Formal: bank, post office • Informal: courier/hawala, friend, self, and tappawala (for Orissa only) • Good business opportunity • Close to 70% remitters send up to Rs.5,000 per month • No single channel matches remitter/recipient requirements • Bank, the most trusted channel does not provide doorstep delivery, high processing time • Courier, which delivers money at the doorstep, charges high fees and is not safe • Post office, which delivers money at doorstep, delays delivery, expensive

7. Customer’s requirement • Customers are not willing to wait in long bank queues • They also appreciate more flexible hours and better service than bank branches currently offer. • Customers willing to pay more than bank charges for better service • Lesser procedures/documentation

8. Can Post Offices bridge the Gap? • Post Office’s key strength • Doorstep delivery, particularly important for recipients • Cheaper services example iMO, MMT etc • Customer need not have any account with PO • Easy access • Trust and safety • But delay in delivery has to be reduced and experience and repeated transactions needed to build trust.

9. Classroom Discussion • How Post Office can fill this gap & what is their role in it?

10. Welcoming steps • Post Offices wearing a new look due to implementation of project arrow • Welcoming atmosphere in all the POs, thanks to National Cleanliness Drive • Introduction of Mobile Money Transfer to suit the customer requirements for faster remittances • Combined money remittance booking form for easy documentation & delivery information in mobile for iMO & MMT, Mobile alerts track & trace for others • Introduction of state of art technologies through India Post 2012 projects including Rural ICT

11. What’s my Role? What should I do? How I can Help • Gain in-depth knowledge of all the products and services • Cultivate good behavioral skills & good customer service techniques • Judge the requirement of the customer and suggest suitable remittance service • Briefly explain the process of the service and required documents from both remitter and receiver • Keep stock of required forms

12. What’s my Role? What should I do? How I can Help • Assist the customers in documentation • Configure India Post web address in day’s message in MPCM counter receipts • Enter the correct PIN Code & other details including Mobile Number while booking • Enlighten customer about Track and Trace and other requirement • Place all the booking form & other documents before supervisor for immediate authorization

13. What’s my Role? What should I do? How I can Help • If you are in a delivery office, process the transactions as early as possible • Every day login into website and keep your credentials active • Have a list of near-by offices offering different kinds of services and suggest it to customer in exigencies • Take print out of all the eMOs received in your office, and arrange for same day delivery

14. What’s my Role? What should I do? How I can Help • Take returns in the Postman module with proper remarks and submit the account • Update information into the central server by giving call through communication modules regularly • If you are in RD counter, give information to Group Leaders about Money remittance service and ask them to share the same with others • If you are in-charge of a office, make proper arrangement of funds for early pay-outs • Look for better queue management

15. INTERNATIONAL MONEY REMITTANCES SERVICE MARKETING

16. International Remittances Market India is the largest recipient of international remittances in the world. UAE – India [25.09 %],US – India [21.82%], UK – India [7.45%] are 3 among the top 10 global remittance corridors. [ Source : Boyars-Intrinsic-Research-Report-Western-Union]

17. Opportunity • Commercial banks have only a 5% share of the global remittance market, because it’s not considered to be part of traditional core banking business. • In India though there is over 99000+ bank branch network, only 36,000+ inhabited areas have a bank branch out of the 600,000 inhabited areas in the country. • The remittance services offered by the banks are not geared toward cash payouts to the recipient. • Here Post Office is having an opportunity

18. Remittance Service Providers • The remittance market in India is serviced by • Post Offices • Commercial banks & Co-Operative banks • Non-bank Money Transfer Operators (MTOs) • Foreign Exchange Bureaus & • Wide variety of commercial entities [incl. Internet] (acting as agents and subagents)

19. Global Remittance Market • Today, one in five dollars remitted globally passes either through • Western Union, which owns 16% of the market or • MoneyGram, with 4% market share

20. Status of International Remittance • Currently international remittance market for cash payouts in India is captured by • Western Union[WU] • MoneyGram[MG] • India is the largest recipient of international remittances in the world (World Bank Report) • In India both the Money Transfer Operators [WU & MG] are providing these services through its agents

21. Status of International Remittance • In India [World Bank Report] • WU is leader in this Money Transfer Service Scheme • It has more than 50,000 agent locations in India • Operates in more than 7,000 cities and towns & • Works with more than 30 leading banks. • India Post is among the single largest agents of WU. • Around 8,500 post offices offer WU services [World Bank Report]. • Western Union’s remittance through India Post • In FY 2012-13, Rs 1482 crores to 592311 customers • In FY 2013-14, Rs 3473 crores to 1398763 customers

22. Low Cost of remittance by POs • The cost of remittances by commercial banks is 12.53 % • Significantly higher than the global average at 8.36 % • with MTOs cost of remittances is 6.69 % • Where as with post offices it’s only 5.93 %

23. What’s my role? • Keep your login credentials active • Help & assist customers in documentation • Remember Code: 8 digits for MG, 9 digits for IFS, 10 digits for WUMT, 26 digits for France IFS • Keep a list of loyal customers • Keep Help-line numbers for emergencies • Keep a list of near-by Post Offices offering the same services & inform the same to customers in case if you are not able to serve • Process the transactions as early as possible • Arrange cash for early pay-outs

24. STRATEGY OF MONEY REMITTANCE MARKETING

25. Strategy of Marketing Money Remittances • Employees should have knowledge of Money remittance services offered by the Department • Create Product awareness w.r.t. MMT, iMO among general public by Word of Mouth publicity by our staff members • Network of Postman be used for collection of remittance by the senders

26. Strategy of Marketing Money Remittances • Extension of counter hours from 9am to 9 pm especially in case of IMTs where other agents are operating • Expansion of services like iMO and MMTs in all Post Offices • Monitoring of Money remittances for faster remittances

27. Strategy of Marketing Money Remittances • Use of combined MO remittance form in case of domestic remittance for easy documentation • Target migrated population who send money for their family maintenance regularly and special arrangement can be made for collection & remittance of the amount

28. Strategy of Marketing Money Remittances • Post Office premises, Mail vans, Passbooks, MPCM receipts can be used for advertising our own product instead of promoting other’s product • Use of Direct Post, mouth publicity through Postman Staff, PLI/RPLI melas, Philately exhibition etc • Effective use of Social Media for promoting India Post’s products • Better Infrastructure like seating arrangement, writing desk, Drinking water, Fan, Lighting for customers and cleanliness in POs

29. Strategy of Marketing Money Remittances • Use of MPKBY agents, SAS agents & others for promoting India Post’s products • Advertisement in FM Radios, TV Channels, Local news paper, Cable TVs • Standing Instruction facility for regular money remittances to ease the documentation & to save valuable customer time • Better queue management and faster arrangement of money for payments

30. Strategy of Marketing Money Remittances • Use Posters, banners, Hoardings & Open kiosks/information desks in melas & jathras like during Dasara in mysore, kodogu- Bramhotsavam in Tirupathi (AP), During Onamfestival in kerala , Kumbhamelas, Durgapendals, Purirathyathra, Republic Day parade in New Delhi etc • Arrange for distribution of pamphlets and direct posts • Canvas for the products & services in schools, colleges, apartments, State & Central government offices, PSUs, Training Centers, shopping complex, shopping Malls, banks, townships, bus stands, railway stations • Target migrated populations who are sending amounts to their dependents like workers in big construction locations/projects, casual laborers in factories, small, medium and large scale establishments, manufacturing industries

31. Continued The strategy should contain • Prerequisites at the PO(HR, Infrastructure) • Identification of the market/customers • Promotion of the product • Analysis of the impact of the marketing effort

32. Activity The trainees to be divided in to 6 groups and to prepare marketing strategy for the following products • MO including eMO • iMO • MMTS • MO Videsh • WUIMT • Moneygram

33. Activity • Make 10 groups of 3 trainees each and ask them prepare some • marketing posters • advertisements • role plays • slogans with catchy words • poems etc.