1. Developing a common framework for measuring transparency in the remittance market Presented by Leon Isaacs CEO, Developing Markets Associates Ltd Board Member, IAMTN 12 September 2008

2. WB PPP Vienna 2008 Slide 2 Contents 1.Context for transparency 2.The situation today 3.Some options available 4.Possible global standards 5.Next steps

3. WB PPP Vienna 2008 Slide 3 Context oTransparency is the first General Principle for Remittances  ‘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’  ‘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. WB PPP Vienna 2008 Slide 4 Context (cont) oThe General Principles identify the following areas that transparency can address  Transparency by individual remittance service providers  Appropriate consumer protection  Enabling end users to understand the market for remittances  Comparative price information  Educational campaigns

5. WB PPP Vienna 2008 Slide 5 Benefits of price comparison sites oConsumers oCurrently hard to shop around and compare relevant costs. Provides easy mechanism to compare different services in an unbiased and objective way oAuthorities – regulators and governments oMore transparency oPotential reduction in prices oHelps with financial literacy of consumers oPrivate sector – RSPs oHelps to demonstrate the competitive advantage of their service

6. The situation today oIncreased interest in consumer price information – particularly via websites Geld naar huis WB PPP Vienna 2008

7. Slide 7 Situation today (cont) oMost sites have been started by governments, normally the international development ministries oObjective of the sites is to provide relatively current and unbiased information to consumers to help them become better informed, transmit more through formal channels and for more of their money to be received oWorld Bank has launched the Price Remittance Database

8. WB PPP Vienna 2008 Slide 8 Challenges of the situation today oThe sites have been developed using different methodologies and to address different corridors  All driven by send corridors  In the language of the sending country  Some show fees but not exchange rates  Sites are updated at different intervals  Data collection methodologies vary oThe initiatives are to be applauded but as more sites are developed there are a number of options to be considered

9. WB PPP Vienna 2008 Slide 9 Options 1.Do nothing 2.Develop a global set of standards for information to be contained on a price comparison site 3.Develop an umbrella site that links all the sites that have been developed and that meet a defined quality standard 4.Develop one global database that covers every corridor from the key countries

10. WB PPP Vienna 2008 Slide 10 Possible global standards oEach site will maintain/develop its own identity oPricing information would benefit from following the methodology in the World Bank Price Remittance Database  A minimum of two representative transaction amounts but preferably more  Fees – on the send side and the receive side (where present)  Foreign exchange rates – these should show the actual cost to the consumer for the exchange rate provided ideally in the payment currency and as a percentage

11. Search Results for sending £100 £250 From UK to Jamaica Data updated on 11 Sep 2008 www.moneygram.co m 10 minutes/instant 11171.90 11.62 4.99C/E/ONationwideMoneyGram Corporate Credit Union Same day transfer 11180.31 11.56 4.00CLondonRia Financial Affiliate agentsUp to 2 hours11180.31 11.56 4.00CLondonDT & T SwiftCash agents30 minutes11204.35 11.37 5.00CNationwideSwiftCash CNC, SenviaUp to 24 hours11276.40 10.80 5.00C/ENationwideCoinstar Money Transfer Affiliate agents24 hours11315.01 10.49 4.00CLondonUnited Europhil Ltd Affiliate agents Next day service 11319.86 10.45 4.00CLondonEzremit National Commercial Bank of Jamaica Same day11380.51 9.97 3.99C/ENationwideSenvia (Cash transfer) City of Kingston CO- Op + others 24 hours11381.37 9.96 3.00CLondon Money Remittance Worldwide Victoria Mutual outlets 10 minutes/Instan t 11432.83 9.56 2.99CNationwideVictotria Mutual Jamaican bank account or home delivery 1-3 days11433.18 9.55 8.00OOnlineRapid Remit Compare Outlets Speed of Transfer Jamaican Dollar (JMD)s Received for Initial £100 Total Cost £ Fee £ Method of Transfer LocationOperator 2.99 8.00 Fee £ 3.00 2.99 8.00 Fee £ 3.99 3.00 2.99 8.00 Fee £ 4.00 3.99 3.00 2.99 8.00 Fee £ 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ 4.00 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ 4.00 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ 4.99 4.00 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ Victotria Mutual Rapid Remit Money Remittance Worldwide Victotria Mutual Rapid Remit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit DT & T SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit Ria Financial DT & T SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit MoneyGram Ria Financial DT & T SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit Operator MoneyGram Ria Financial DT & T SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit

12. Search Results for sending £100 £250 From UK to Jamaica Data updated on 11 Sep 2008 www.moneygram.co m 10 minutes/instant 11171.90 11.62 4.99C/E/ONationwideMoneyGram Corporate Credit Union Same day transfer 11180.31 11.56 4.00CLondonRia Financial Affiliate agentsUp to 2 hours11180.31 11.56 4.00CLondonDT & T SwiftCash agents30 minutes11204.35 11.37 5.00CNationwideSwiftCash CNC, SenviaUp to 24 hours11276.40 10.80 5.00C/ENationwideCoinstar Money Transfer Affiliate agents24 hours11315.01 10.49 4.00CLondonUnited Europhil Ltd Affiliate agents Next day service 11319.86 10.45 4.00CLondonEzremit National Commercial Bank of Jamaica Same day11380.51 9.97 3.99C/ENationwideSenvia (Cash transfer) City of Kingston CO- Op + others 24 hours11381.37 9.96 3.00CLondon Money Remittance Worldwide Victoria Mutual outlets 10 minutes/Instan t 11432.83 9.56 2.99CNationwideVictotria Mutual Jamaican bank account or home delivery 1-3 days11433.18 9.55 8.00OOnlineRapid Remit CompareOutlets Speed of Transfer Jamaican Dollar (JMD)s Received for Initial £100 Total Cost £ Fee £ Method of Transfer LocationOperator 2.99 8.00 Fee £ 3.00 2.99 8.00 Fee £ 3.99 3.00 2.99 8.00 Fee £ 4.00 3.99 3.00 2.99 8.00 Fee £ 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ 4.00 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ 4.00 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ 4.99 4.00 5.00 4.00 3.99 3.00 2.99 8.00 Fee £ Victotria Mutual Rapid Remit Money Remittance Worldwide Victotria Mutual Rapid Remit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit DT & T SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit Ria Financial DT & T SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit MoneyGram Ria Financial DT & T SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit Operator MoneyGram Ria Financial DT & T SwiftCash Coinstar Money Transfer United Europhil Ltd Ezremit Senvia (Cash transfer) Money Remittance Worldwide Victotria Mutual Rapid Remit 9.55 Total Cost £ 9.56 9.55 Total Cost £ 9.96 9.56 9.55 Total Cost £ 9.97 9.96 9.56 9.55 Total Cost £ 10.45 9.97 9.96 9.56 9.55 Total Cost £ 10.45 9.97 9.96 9.56 9.55 Total Cost £ 10.49 10.45 9.97 9.96 9.56 9.55 Total Cost £ 10.80 10.49 10.45 9.97 9.96 9.56 9.55 Total Cost £ 11.37 10.80 10.49 10.45 9.97 9.96 9.56 9.55 Total Cost £ 11.56 11.37 10.80 10.49 10.45 9.97 9.96 9.56 9.55 Total Cost £ 11.56 11.37 10.80 10.49 10.45 9.97 9.96 9.56 9.55 Total Cost £ 11.62 11.56 11.37 10.80 10.49 10.45 9.97 9.96 9.56 9.55 Total Cost £

13. WB PPP Vienna 2008 Slide 13 Possible global standards oEach site will maintain/develop its own identity oPricing information would benefit from following the methodology in the World Bank Price Remittance Database  A minimum of two representative transaction amounts but preferably more  Fees – on the send side and the receive side (where present)  Foreign exchange rates – these should show the actual cost to the consumer for the exchange rate provided ideally in the payment currency and as a percentage  The type of service, e.g. cash collection, credit to a bank account  The speed of the service – time taken for the money to be available

14. WB PPP Vienna 2008 Slide 14 Additional standards (cont) oAn indication of the number of locations where the service is available in both send and receive markets oData to be verified and updated at least monthly oData to be gathered (or at least verified) independently from RSPs oNo RSP advertising on the site oLink to other approved sites

15. WB PPP Vienna 2008 Slide 15 Next steps oBegin discussions now and with key stakeholders oEstablish a working group within the Public and Private Sector Partnership to make specific recommendations oAgree standards and communicate oEstablish a monitoring and guidance process

16. WB PPP Vienna 2008 Slide 16 Contact details Leon Isaacs CEO Developing Markets Associates leon.isaacs@dmassocs.com leon.isaacs@iamtn.org www.dmassocs.com www.moneymove.org www.iamtn.org 39-41 North Road, London, N7 9DP T: +44(0) 207 700 1990 M: +44 (0) 7909938305