UPU News: Posts ready to exploit demand for financial services
Thursday, 17 April 2014 08:39
To capture the potential for growing the market for postal financial services, Posts must be open, forward-looking and innovative.
"While postal financial services have been around for more than a century, they can still provide a large revenue stream for Posts," said UPU Director General Bishar A. Hussein at a recent UPU forum organized prior to the Postal Operations Council in April.
He called on public postal operators to boost their bottom line through a business area that also brings many social benefits. "Postal financial services can facilitate national economic growth and financial inclusion, as well alleviate poverty and provide a lifeline to many migrants," he said.
Pedro de Vasconcelos from the International Fund for Agricultural Development reminded attendees that the global remittance market was worth some 430 billion USD in 2013. "In the next five years, 2.5 trillion USD will go to countries in remittances... of which the rural share is 1 trillion USD," he said.
'Super tax' on remittances to Africa hurts development -thinktank
Thursday, 17 April 2014 08:32
Source: Thomson Reuters Foundation
By: Katie Nguyen
Africans face the highest remittance fees globally, regularly paying a "super tax" to send money home at a cost that hurts families and holds back development in the world's poorest continent, a leading thinktank said on Wednesday.
The London-based Overseas Development Institute (ODI) said that reducing remittance charges to global average levels would generate $1.8 billion, enough to put 14 million children through primary school, or provide clean water to 21 million people.
The average cost to transfer $200 to sub-Saharan Africa was about 12 percent, compared with a global average of 7.8 percent, ODI said in its report, "Lost in intermediation", branding the higher fees a "super tax".
Facebook Prepares A Money-Transfer Service, But Still Needs Trust
Tuesday, 15 April 2014 07:35
By: Parmy Olson
With more than 1 billion active mobile users, Facebook has the kind of scale to make any e-payments service jealous, but it could be years before the company gets that other important feature to running a viable financial business: trust.
Facebook has been working since at least late last year on a European-wide service that would allow end users to store and transfer money on Facebook, according to a source in the financial services industry with knowledge of Facebook's plans.
Initiative helps bring down costs of remittances
Tuesday, 15 April 2014 07:32
The Pakistan Remittance Initiative is helping exert downward pressure on costs of making remittances to the South Asian region, and the trend is likely to continue, says a World Bank report.
In its latest issue of migration and development brief, the World Bank says that total average cost of making remittances in the South Asian region fell to 6.6 per cent in the first quarter of 2014, from 7.2pc a year ago.
The US is a larger corridor from US to Pakistan which attracts more remittance service providers and typically is more competitive that leads to some of the lowest remittance costs in the world.