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 Transparency is the first General Principle for Remittances and was a driving force in the development of 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

Transparency Transparency is the first General Principle for Remittances and was a driving force in the development of 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.

Remittance price comparison websites

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

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 marketSendMoneyPacific

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

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 to AUD Representing an actual percentage decline of 13.64% New Zealand: July 2012 – overall costs for sending NZD200 down from NZD to NZD Actual percentage reduction of 19.14% Australia – Pacific Remittance Costs

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

Remittance fees to Fiji

Remittance fees to Samoa

Remittance fees to Tonga

Remittance fees to Tonga

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% Achieving the 5 x 5 objective

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 New remittance products and providers

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 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 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 Diaspora engagement

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

In late 2010, SendMoneyPacific received certification from the World Banks 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 operators exchange rate and margin, and also be made aware of possible additional receiver fees 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 MoneyPACIFICs 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 Website developments

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 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 Improvements & suggestions

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 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 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 Looking to the future

Contact Details Jonathan Capal Regional Manager Developing Markets Associates Pty. Ltd. Suite 213, Level 2 61 Marlborough Street Surry Hills, NSW 2010 Australia t: +61(0) m: +61(0)