GREENBACK HAITI

PAYMENT SYSTEMS DEVELOPMENT GROUP

GLOBAL PAYMENTS WEEK, TURIN ITALY, SEPTEMBER 2016

Remittances in Haiti

• In 2015, remittance inflows to Haiti were estimated at USD 2.2 billion, 23% of GDP

• This does not include inflows through unregulated channels, which are perceived to be sizable

1

• Haiti is one of the world’s most remittance dependent countries

• Remittances are also a vital as a source of foreign exchange

Five pillars to enhance availability, affordability, and quality of financial

services provided to the target groups: the poor, MSMEs, small farmers,

the young, females, the migrants, and those leaving in marginal areas

1. Financial services to facilitate inclusion and poverty reduction

2. Financial services for economic growth

3. Bringing services closer to people

4. Empowering consumers

5. Strengthening institutions and infrastructure

2

Haiti National Financial Inclusion Strategy (NFIS)

Haiti GPs Assessment Summary:

Selected key findings and how Greenback will help

3

Assessment Selected Key Findings How Greenback will help

Transparency

and Consumer

Protection

• Inadequate dispute resolutions in

place.

• Consumers do not know how to

complain

• Financial literacy levels remain low

• Make sure consumers are aware

of their rights

• Contribute to financial education

Market

Structure and

Competition

• Reasonably competitive market

where no single MTO is dominant

and exclusivity agreements are

rare

• Some MTOs do not allow

payments directly into accounts

• Facilitate discussions between

stakeholders to ban exclusivity

agreements, to eliminate the

possibility of their introduction

and to ensure payments can be

made directly into accounts

• Collaborate with MNOs to

facilitate the introduction of

international mobile money

Why? – Objectives

4

Make consumers aware of their rights

Increase financial education

Promote transparency and efficiency in the market for remittances

Promote change adapted to the needs of Haitians, encouragingdemand-driven good practices

Bring services closer to people

Empowering consumers by allowing them to make informed choices

5

Baseline survey on remittance senders and recipients

Remittance behaviour (channels, amounts, frequency, factors influencingchoice of MTO, usage of remittance, costs perception, etc.)

Financial inclusion level (access to and usage of financial services in generaland for remittances)

Use of Information & Communication Technologies (especially in theperspective to develop innovative payment channels)

Multiple target groups

Migrant workers (Haitian Diaspora)

Remittance recipients in Haiti

Remittance service providers in Haiti

How? – Project Design /1

How? – Project Design /2

6

Example of activities

Partner with NGOs, MFIs, remittances actors to develop and deliverinteractive modules and courses for remittance senders and recipients

support awareness, increased financial inclusion andindependence of migrants and their families

Organize a Challenge Fund to allow local and diaspora associations tohelp define and implement Greenback 2.0 activities

facilitate transfer of knowledge and capacity building

Market mapping of providers and services linked to remittances

help RSPs identify opportunities (organization of workshops)

Develop qualitative and quantitative measures to monitor impact

Pre- and post-training surveys to assess quality of training and knowledgegained

Identify activity-specific KPIs, such as # of persons trained, # of sessionsorganized, # people reached by awareness campaigns

When? – Timeframe

7

Remittances market assessment: completed

Assessment report shared with BRH

Proposed action plan drafted and shared with BRH

Dissemination event in Port-au-Prince and official launch ofGreenback 2.0 Haiti –January 2017 (subject to BRH final approval)

Implementation: March 2017 to March 2018

Payment Systems Development GroupThe World Bank

http://remittanceprices.worldbank.org

8

The World Bank – CPSS General Principles (GPs)

for International Remittances Services

General Principles for International Remittances

Services

GP1: Transparency and consumer

protection

GP2: Payment system

infrastructure

GP3: Legal and regulatory

framework GP4: Competitive

market conditions

GP5: Governance

and risk management

practices

9

Roles: Both public authorities and remittance service

providers have a role in implementing the General

Principles

Banks, credit unions, MFIs and MTOs themselves can establish an

agent network There is good coverage, even in rural areas

Most remittances are cash to cash and MTOs (rather than banks) are

most used, but no single dominant MTO Few options to deposit

remittances in bank / saving accounts or mobile wallets ; competition

exists among the 7 MTOs

It is relatively cheap to send money to Haiti from the USA (70% of

inflows) but higher than other countries in the LAC region

Some basic banking products exist – SogeIzi and ToutKote They

represent brave attempts to tackle financial inclusion

No regulatory obstacles to the introduction of mobile money Potential

to complement remittances products exists

USD1.50 on each inward and outward remittance transaction People

who send and receive small amounts are penalized

Remittances are paid out in USD Difficulties in providing USD in

agents and delays entry of foreign currency into economy10

Haiti GPs Assessment Summary: Key findings and

implications