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.

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’

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.’

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

market

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

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%

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

Launch Jul-09 Jan-10 Apr-10 Jun-10 Jan-11 Jun-11 Dec-11 Jul-120.00

5.00

10.00

15.00

20.00

25.00

30.00

AUD 200 - average fees from launch (Fiji)

Fiji (MTO)Fiji (Bank)Fiji (overall)

Fees

for s

endi

ng A

UD20

0 to

Fiji

Remittance fees to Fiji

Launch

Jul-09

Jan-10

Apr-10

Jun-10Jan

-11

Jun-11

Dec-11

Jul-12

0.00

5.00

10.00

15.00

20.00

25.00

NZD 200 - average fees from launch (Fiji)

Fiji (MTO)Fiji (Bank)Fiji (overall)

Fees

for s

endi

ng N

Z 20

0 to

Fiji

Remittance fees to Samoa

Launch Jul-09 Jan-10 Apr-10 Jun-10 Jan-11 Jun-11 Dec-11 Jul-120.00

5.00

10.00

15.00

20.00

25.00

30.00

AUD 200 - average fees from launch (Samoa)

Samoa (MTO)Samoa (Bank)Samoa (overall)

Fees

for s

endi

ng A

UD20

0 to

Sam

oa

Remittance fees to Samoa

Launch

Jul-09

Jan-10

Apr-10

Jun-10Jan

-11

Jun-11

Dec-11

Jul-12

0.00

5.00

10.00

15.00

20.00

25.00

NZD 200 - average fees from launch (Samoa)

Samoa (MTO)Samoa (Bank)Samoa (overall)

Fees

for s

endi

ng N

Z 20

0 to

Sam

oa

Remittance fees to Tonga

Launch Jul-09 Jan-10 Apr-10 Jun-10 Jan-11 Jun-11 Dec-11 Jul-120.00

5.00

10.00

15.00

20.00

25.00

30.00

AUD 200 - average fees from launch (Tonga)

Tonga (MTO)Tonga (Bank)Tonga (overall)

Fees

for s

endi

ng A

UD20

0 to

Ton

ga

Remittance fees to Tonga

Launch

Jul-09

Jan-10

Apr-10

Jun-10Jan

-11

Jun-11

Dec-11

Jul-12

0.00

5.00

10.00

15.00

20.00

25.00

NZD 200 - Average fees from launch (Tonga)

Tonga (MTO)Tonga (Bank)Tonga (overall)

Fees

for s

endi

ng N

Z 20

0 to

Ton

ga

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 2010 - 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 SMP

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 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

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

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 CapalRegional ManagerDeveloping Markets Associates Pty. Ltd.Jonathan.capal@developingmarkets.com

www.developingmarkets.comwww.sendmoneypacific.org

Suite 213, Level 261 Marlborough StreetSurry Hills, NSW 2010

Australiat: +61(0) 02 9699 0079

m: +61(0) 414 352 132