Running a successful and cost efficient remittances business
Publication Date: September 2008
Category: Remittances| Retail Banking

Total No. of Figures/Tables: 15
Publication Price: US$ 2500

INTRODUCTION

Over the last few years, the remittance business has grown in importance to commercial banks. While remittances were originated almost exclusively by money transfer agents, today banks are strategically leveraging their payments capabilities and extended distribution networks to tap into an industry that generates $23 billion in revenues. Banks have been launching new initiatives that allow a more varied blend of networks and consumer-facing technologies. The ability of banks to provide low priced solutions on a relationship basis, to form alliances with local banks, and the scale and efficiency to manage costs, among others, are important operational factors that determine the competitive advantages in a business that has seen a proliferation of offline and online players.

This report is part of the Consumer Banking Competitive Benchmarking Series and presents The Asian Banker¡¯s composite view on the key elements and drivers that shape the remittances business.

  1. This report captures important benchmarks players need to be aware of in running the business.
  2. It provides key operational insights into macro, market and street level fundamentals from which banks are able to build their own benchmarking templates and capabilities.
  3. It identifies operational best practices among fi nancial institutions in developing a cost-efficient
    remittance system.
  4. It also identifies emerging strategies in growing remittance business and competing eff ectively.
  5. It outlines key success factors of an integrated business architecture and its processing system.
  6. It also outlines key quality management and service tools.
  7. It identifi es technical advancements and their applicability in growing remittance business.

  1. Build your own performance management monitoring capabilities in the remittances business.
  2. Gain insights into the key drivers of the remittance business.
  3. Understand core functionalities and operational insights in growing and running a successful
    remittance business.
  4. Learn of extended challenges and solutions in the area of processing and registration.
  5. Facilitate building up your own scope of comprehensive products, services and solutions.

  1. Heads of consumer banking, retail payments, remittance business, strategic planning, research
    and marketing.
  2. Non bank remittance institutions and online players who wish to improve their understanding of
    a commercial bank's remittance business.
  3. Research analysts in banks and non-banking fi nancial institutions.
  4. Director of sales, senior sales managers, product and service developers and other sales
    personnel with responsibility of remittance products and services.
  5. Vendors and service providers targeting the fi nancial services.

1. Macro Level Fundamentals
  1. Fundamental beliefs that determine the shape of the remittance industry
  2. Industry drivers that determine the competitive landscape
  3. Sign posts and red flags
  4. Industry Scenarios
  5. Key macro indicators
  6. From non banks to multi player environment: paradigm shifts in the last 10 years
  7. Recent market winning propositions by banks
  8. Global remittance and migrant volume 2003-2010
  9. Diversifi cation of customer segments and corridors
  10. Current and future delivery models and its major players
  11. Key network technologies for commercial banks
2. Market Level Fundamentals
  1. Key elements and success factors to compete in the remittance business
  2. The ¡°Banks We Like¡±
  3. Key market indicators
  4. Key operational elements in strategy, technology and accessibility
  5. Creating end to end service propositions
3. Street Level Fundamentals
  1. Balanced scorecard Indicators to track your business performance
  2. Sound operational business architecture
  3. Blueprint of a robust remittance processing system
  4. Key challenges and approaches in remittance transaction processes
  5. Creating a simple and easy registration process for customers
  6. Key challenges in a typical remittance process fl ow from US to Asian countries
  7. Developing and implementing a low prices product solution framework
  8. Developing a comprehensive product and service scope
  9. Key service quality and marketing management tools
  10. Key operational elements of customer benefi ts to compete in the remittance business
  11. Cost effi ciencies and revenue elements in diff erent remittance scenarios
  12. Critical operational initiatives to reducing processing time
  13. Leveraging on e-channels in the remittance business
  14. The Questions We Ask
  15. Our Scorecard for assessing players in this business