THE UNBANKED AND THE IMPORTANCE OF NBFIS IN THE US

How the financial crisis, the evolution of Banking and Unbanking and the rise of technology in financial services are all connected

The financial crisis and the rise of technology in financial services, that has led to an increase in the importance of NBFIs (Non-Bank Financial Institutions) in the provision of financial services, has created a number of challenging situations that might seem unconnected but could be associated to the evolution of a new world financial order.

We will explore in this article two books, discuss small loans by NBFIs, mention the work of a California-based fintech and close with links to introduce our next blog, how the unbanking or derisking is also phase of the struggles we are facing as an industry and a major challenge for NBFIs all over the world.

Money transfer comparison sites

The more I learn about money transfer comparison websites, the more I am fascinated by the results that they provide. And they are getting better and better, and they are each finding a way to present their information and develop their own character. Are they being used by end-users? Who, how? Are they been used by companies to see how the competition is pricing themselves compared to them? How consistent are the best priced companies?
All those questions are probably in your mind. I can’t answer all of them but by the end of your read you’ll probably have a better idea of this new side of this industry.

Remittances are down and Money Transfers are up?

Last week, The Global Knowledge Partnership on Migration and Development (KNOMAD1) published its Migration and Remittances Brief  #27 (April 2017) prepared by Dilip Ratha, Supriyo De, Sonia Plaza and the rest of the team2 of the Migration and Remittances Unit of the Global Indicators Group of the World Bank.

As I mention in the IMTC conferences, these great briefs are the basis for the information I use for my presentations and courses and by far the best information that is collected in the world on remittances.

This is Part 1 of a compendium/overview of what I find more important for the industry in this Brief; I hope it’s a helpful guide in case you have not seen it yet.

Making Way for Digital Agents

A new trend is ready to reinvigorate the remittance industry

The International Money Transfer & Payments industry has always relied on a large network of brick & mortar agents, both in the sending side of a corridor as well as in the receiving side. It is more true in the sending side, where mom & pop ethnic stores have dominated the landscape providing good and reliable services to migrants in many cities & towns in the world. Migrants trust them and even if they are losing ground to retail chains agent networks and other more corporate store chains, they still handle the large majority of orders sent in the US, Europe and the Gulf.

Western Union, MoneyGram, Ria Money Transfer have always published their agent number as a sign of the growth of their collection (on the sending side) & distribution network (on the paying side).

How is technology changing the remittance industry?

In the process of building the RemTECH Awards http://bit.ly/RemAwards1 and asking ourselves what innovation in the remittances industry meant, I searched the internet and talked to colleagues, both in the traditional financial services sector, bank and non-bank, as well as in fintech start-ups.

I began with fintech and what is truly interesting is that there is a broad understanding of what fintech is but almost everyone doesn’t see eye-to-eye in the details. With no boundaries of how much technology has to change a financial service or a product or how much disruptive the company – or the idea is, to be labeled a “fintech”, almost anyone could call themselves a fintech nowadays if it applies technology, in a large measure, to all its processes.

How is technology changing the remittance industry?

Ant Financial’s & Euronet’s Bids for MoneyGram

(update)

MoneyGram and Ant Financial Services Group announced on April 17 that the companies have entered into an Amended Merger Agreement under which MoneyGram will merge with Ant Financial. Ant increased the offer price from $13.25 per share to $18.00 per share in cash (The transaction is valued at approx. $1,204 million). The operation will be completed in the Fall of 2017. It has gained antitrust clearance from the US government and the filing of state licensing approvals has begun. MGI will operate as an independent subsidiary of Ant Financial and retain its brand, management team, IT infrastructure and headquarters in Dallas. (http://bit.ly/newMGI-Ant)

IMTC LATAM 2017 Afterthoughts

Never before in an IMTC Conference we have had so many representatives from such a large number of sectors of society: politicians, ex-politicians, researchers, academics, pollsters, migration specialists, opinion makers, journalists, social workers, representatives of NGOs, cooperatives, “Cajas” (community banks), workers’ banks, entrepreneurs, remittance companies directives and commercial bank executives.

I think that three factors contributed to this outcome. The first…

Reinventing Remittances with Bitcoin

Stories from the startups on the front lines from Luis Buenaventura

Luis Buenaventura and his team at Bloom are passionate pioneers of the Bitcoin remittance industry as well as its most enthusiastic observers, and this book is their contribution back to this growing community.
Luis has spent the last few years focusing exclusively on cryptocurrency as a mechanism for cross-border money transfer, and he has managed to meet and learn from many of the other Bitcoin remittance players out there. Reinventing Remittances is a collection of conversations, essays, and real data from the field, and is illustrated with tons of graphics and photos.
The digital edition can be downloaded for free!

The Taxing of Remittances in the US

Georgia & Iowa move to leverage a tax on remittances – Financial Institutions are reacting

In a previous blog (in Spanish), posted in the midst of the many reporter calls, especially from Latinamerica (driven by the anxiety over the migration policies of the new US Trump administration), I mentioned the US legislators drive to tax remittances in the US. The State of Oklahoma is taxing remittances for some years now ($5 up to $500 and 1% after that). Several other States such as Georgia and Iowa are moving on this direction and the industry is watching. In the federal level there are also some initiatives being proposed. in an effort to fund the border wall.

ANNOUNCING THE REMTECH AWARDS

THE FIRST AWARDS TO BRING FINTECH INNOVATION ON REMITTANCES FORWARD

Selection is now open to the RemTECH Awards!. Nominees will be announced at the IMTC USA 2017 in San Francisco on June 13 and winners will be announced and awarded at the Global Forum on Remittances, Investment and Development at the GFRID2017 in New York on June 15. The GFRID2017 is organized by the International Fund for Agricultural Development (IFAD), the World Bank and the United Nations Department for Economic and Social Affairs (UN-DESA) in New York City. The International Day of Family Remittances (IDFR) will be celebrated on June 16 in the context of the GFRID, at the United Nations headquarters. See Press Release

Vamos llegando (We are arriving) – poem & song

Almost 10 years ago I wrote this poem entitled “encontrando espacio” (finding space) that was published in my 2008 poetry book “más allá del mar”. Italian composer, Massimiliano Agelao, created a song, entitled “vamos llegando” (we are arriving) that was recorded – and performed, by a young group of musicians and singers in Colombia, called Grupo Musicalizando.
The song and the poem are a tribute to all the men and women who courageously challenge borders in search of a better future for themselves and their families … a tribute to the migrants of the whole world. I these worrying times of massive walls and deportations, I felt that it was a good time to share it with you.

The poem and the song are in Spanish and the translation is just to help you understand it; it is not, by any means a poetic translation…

Remittances, Migration & the Trump Effect: The Press Asks Questions

“It is the migrant, most of the time forgotten, who is sustaining the economy”
Diario La Hora – Guatemala – Jan 20, 2017

Hugo Cuevas Mohr, director of IMTC (International Money Transfer Conferences), has worked for years advising bank and non-bank institutions on international money transfers, payments and remittances. In preparation for the IMTC regional forum that will be held in Antigua, Guatemala in March 8-10, he visited the country to talk about migration and remittances, in a moment where the appointment of Donald Trump as President of the United States has brought the subject to the foreground.

Cuevas-Mohr warned that countries in the Central American region and Mexico should not wait to take preventive measures that could protect migrants should US authorities push for legal changes that affect them.

Remesas, Migración y el Efecto Trump: La Prensa Pregunta

“Es el migrante, muchas veces olvidado, el que está financiando toda la economía”
Diario La Hora – Guatemala – Ene 20, 2017
Remesas se incrementaron por incertidumbre tras victoria de Trump

Hugo Cuevas Mohr, director de IMTC (Internacional Money Transfer Conferences), ha trabajado durante años asesorando a empresas bancarias y no bancarias sobre los asuntos de transferencias de dinero y remesas. Previamente al foro regional de IMTC que se llevará a cabo en la Antigua Guatemala en marzo, visitó el país para hablar sobre migración y remesas en el contexto del nombramiento de Donald Trump como presidente de los Estados Unidos. Cuevas-Mohr advierte que los países de la región centroamericana y México no deben esperar para tomar medidas preventivas que puedan proteger a los migrantes en caso de que las autoridades estadounidenses impulsen cambios legales que los afecten.

Press Release: IMTC LATAM 2017

Miami, January 5, 2017 – IMTC, the premier events of the International Money Transfer & Payments Industry, has announced today that its first remittance & migration conference of 2017 will be held in Antigua, Guatemala at the Porta Hotel. IMTC LATAM 2017 will be it’s first conference in Central America and will draw attendees from the Americas & Europe.

Remittances to Guatemala will surpass US 7 Billion for 2016, an all-time high. Remittances to Guatemala have grown steadily since 2010 with an average growth of 6% per year, outperforming most of the countries in the region. But also El Salvador, Honduras and even Mexico has seen remittances grow in 2016, all of them reaching all-time highs. Remittances to Honduras are expected to reach 4 billion while El Salvador could reach 4.5 B when year-end statistics are published. Higher incomes in the US and Trump fears are cited as reasons for the increases.

Notes about IMTC ASIA 2016

Our September conference in Delhi was without a question of a doubt one of the most challenging conferences IMTC has done ever. It would take me many paragraphs to explain this statement, so I am not going to elaborate much more. But at the same time, it has been one of the most rewarding conferences due to the engagement of the attendees and the great feedback received. We had close to 100 attendees from 14 countries: US, UK, Spain, Portugal, Mexico, Russia, UAE, Nepal, Hong Kong, Mongolia, Singapore, Israel and the host country, India. All Photos have been posted here.

IMTC CUBA 2016: a breakthrough

The trust of the international financial sector, mainly all major remittance companies that have been coming to our conferences, was based on the belief that we could put this together, even if many hours were spent on the phone answering doubts and fears. They knew that we could bring together everyone in a spirit of collaboration, colleagues that even competing among themselves, can share a space and a time to build as an industry, a common future. I thank each and every one that came, a list that you can check here, and I value all the comments and warm words that we have been receiving for this historic event.

Barcelona recibe a la industria mundial de remesas y transferencias internacionales de dinero en Mayo

Las remesas en España tienen una historia muy particular. En la actualidad y según el IFAD en Roma (Fondo Internacional de Desarrollo Agrícola – FIDA en español) España es el sexto país europeo en volumen saliente de remesas con un total anual de 9.600 millones en el 2014. Los datos del Banco Mundial (Factbook 2016) sitúan el total para España en 8.794 millones. Rusia se ubica en un primer lugar con  20.600 millones de dólares, seguido por el Reino Unido (17.100 millones), Alemania (14.000 millones), Francia (10.500 millones), Italia (10.400 millones). Los inmigrantes en Europa enviaron 109.400 millones de dólares (97.500 millones de euros) en 2014 a sus familias, alrededor del 25% de las remesas mundiales.

The power of Linkedin

Do you know?

Do you know that Linkedin has 259 million users and growing by about 38% per year? Do you know that 40% of members check in daily and 38% do it from their phones? Do you know that it had a 35% growth in traffic in the past year? And that it is responsible for 64% of all visits from social media channels to corporate websites?Do you know we have a great IMTC Linked in Group?

Glenbrook and The International Money Transfer Conference

Glenbrook’s Payments Essentials industry education programs are designed to help payments professionals reach new levels of understanding and insight into the payments industry. We’ll help you make sense out of the complexity of the payments landscape – by explaining the economic framework of the industry, by putting new developments in context, and by highlighting trends,…

Contact and Banorte to sponsor IMTC USA 2013 in Los Angeles come April

IMTC will host its third edition of its International Money Transfer Conference and Trade Fair in the West Coast, IMTC USA 2013. IMTC brings together experts and company representatives of the Money Transfer Industry to discuss the trends and issues that the industry faces. Additionally, the conference provides major networking and business opportunities with other MT institutions. Today, IMTC is thrilled to announce that CONTACT and BANORTE will be the two major sponsors for this conference.