Swift Worker Remittance Solution for Mobile Financial Services
Worker Remittances Solution
enabled for Mobile channel
Stephan Kraft
Senior Account Director
Romania
2
What is SWIFT?
A
co-operative
organisation
serving the
financial
industry
A
provider of
highly secure
financial
messaging
services
The
financial
standardisation
body
3
Country Coverage
•
4
b
i
l
l
i
o
n
m
e
s
s
a
g
e
s
/
y
e
a
r
•
9
.
7
6
1
c
u
s
t
o
m
e
r
s
•
2
0
9
c
o
u
n
t
r
i
e
s
•
1
9
M
i
o
m
e
s
s
a
g
e
s
p
e
a
k
d
a
y
(
M
a
r
c
2
0
1
1
)
4
(Worker) Remittances - Market overview
M
a
r
k
e
t
:
•
International migrants
200 million
•
Financial flows
USD 400 billion
•
Industry revenue
USD 15 billion
•
Annual transactions
1 to 1.5 billion
•
Average transaction value
+/- USD 300
A remittance is a cross-border, person-to-person
payment of relatively low value.
5
Issues and options for Bank service delivery
1.
Build a proprietary network
2.
Build a bilateral service with a
correspondent
3.
Use open correspondent banking
arrangements
Costly
Lacks scale
Poor service
O
p
t
i
o
n
s
:
I
s
s
u
e
s
:
1.
Open correspondent arrangements do not deliver price and
time transparency for consumers
2.
Processing is inefficient and costly for banks
6
Reference data Directory
FileAct
ISO 20022
Pacs. 008,002,004
Architecture
Rules + Guidelines
Settlement Agent
Sender
debtor
Beneficiary
creditor
Agents
Distribution network
sending country
Distribution network
Receiving country
participants
cover payment
SWIFT Worker Remittance - Architecture
participants
Agents
Service conditions (time, cost, UTIC )
SWIFT Workers Remittance Solution -
Components
7
Debtor
Creditor
Agent
Agent
Participant
Participant
Settlement
Agent
Bilateral Contract
Bilateral Service Level Template
Market Practices
Service Levels, Product Groups, Charges & FX Practices
Reference Data
Participant and Agent Capabilities and Points of Service
Messaging Standards
Instruction, Reject, Return & Status
Messaging Services
FileAct Strore & Forward 6.1
Mobile phone for financial services
8
Mobile phone for financial services
9
M-PESA in Kenya :
Launched in 2007, 7M subscribers, 2.9M EUR transfered every day,
represent already 17% remittances volume to Kenya
SMART Money in the Philippines :
Launched in 2004, 2.5M subscribers, 1.5M unbanked, 50K service point,
80M EUR pa remittances
10
Reference data Directory
FileAct
ISO 20022
Pacs. 008,002,004
Architecture
Rules + Guidelines
Settlement Agent
Sender
debtor
Beneficiary
creditor
Agents
Distribution network
sending country
Distribution network
Receiving country
participants
cover payment
Worker Remittance – enabled for Mobile channel
participants
Agents
•
Mobile instruction
•
Mobile access to online
banking application
•
SMS notification
•
Cash pick-up
•
Credit bank account
•
Store on mobile wallet
Mobile instructed Remittances – value
proposition
New service
with agents
For mobile
remittances
reaching
customers
in rural
areas
Acquiring
new
customers
Enable
mobile banking
channel
For remittances
Speed
Flexibility
ubiquity
security
new
revenue
opportunities
Mobile instructed
Mobile instructed
remittances
remittances
authorizing
cash pay-out
To unbanked
with mobile
12
Your Contact
SWIFT provides a comprehensive solution for worker remittances enabled for mobile channels, offering secure financial messaging services for international migrants. The market overview showcases the significant industry revenue and annual transactions in the worker remittance sector, highlighting the challenges and options for bank service delivery. The architecture rules and guidelines outline the key components of SWIFT's worker remittance solution, including settlement agents, bilateral contracts, market practices, and messaging standards. With a focus on efficiency and transparency, SWIFT's solution aims to improve the delivery of financial services through mobile phones.
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Presentation Transcript
Worker Remittances Solution enabled for Mobile channel Stephan Kraft Senior Account Director Romania
What is SWIFT? A A co-operative organisation serving the financial industry provider of highly secure financial messaging services The financial standardisation body 2
4 billion messages/year 9.761 customers 209 countries 19 Mio messages peak day Country Coverage (Marc 2011) 3
(Worker) Remittances - Market overview A remittance is a cross-border, person-to-person payment of relatively low value. Market: International migrants Financial flows Industry revenue Annual transactions Average transaction value 200 million USD 400 billion USD 15 billion 1 to 1.5 billion +/- USD 300 4
Issues and options for Bank service delivery Issues: 1. Open correspondent arrangements do not deliver price and time transparency for consumers Processing is inefficient and costly for banks 2. Options: 1. Build a proprietary network Costly Lacks scale 2. Build a bilateral service with a correspondent Poor service 3. Use open correspondent banking arrangements 5
SWIFT Worker Remittance - Architecture Rules + Guidelines Architecture Reference data Directory Beneficiary creditor participants Sender debtor participants Agents Agents FileAct ISO 20022 Pacs. 008,002,004 Distribution network Distribution network cover payment sending country Receiving country Settlement Agent 6 Service conditions (time, cost, UTIC )
SWIFT Workers Remittance Solution - Components Settlement Agent Debtor Agent Participant Participant Agent Creditor Bilateral Contract Bilateral Service Level Template Market Practices Service Levels, Product Groups, Charges & FX Practices Reference Data Participant and Agent Capabilities and Points of Service Messaging Standards Instruction, Reject, Return & Status Messaging Services FileAct Strore & Forward 6.1 7
Mobile phone for financial services Value for financial services Fast ,reliable, secured , standardized, cost , ubiquity, reach Usage today for financial services financial transaction notification/alert mobile banking services : balance, credit transfer, bill payment In developed countries : complement e-channels for financial services In emerging countries : - channel to serve unbanked in rural areas 8
Worker Remittance enabled for Mobile channel SMS notification Cash pick-up Credit bank account Store on mobile wallet Mobile instruction Mobile access to online banking application Rules + Guidelines Architecture Reference data Directory Beneficiary creditor participants Sender debtor participants Agents Agents FileAct ISO 20022 Pacs. 008,002,004 Distribution network Distribution network cover payment sending country Receiving country Settlement Agent 10
Mobile instructed Remittances value proposition New service with agents For mobile remittances Speed Flexibility ubiquity security authorizing cash pay-out To unbanked with mobile Enable mobile banking channel For remittances Mobile instructed remittances reaching customers in rural areas Acquiring new customers new revenue opportunities
Your Contact Stephan Kraft Senior Account Director Central & Eastern Europe SWIFT Fischhof 3/6 A-1010 Vienna Austria +43 1 740 40 2374 +43 1 740 40 2379 +43 664 636 2090 stephan.kraft@swift.com swift.com T F M E W 12
