XOOM - one of the biggest worldwide money transfer service

Remittance king Xoom.com has launched a new program that allows overseas and migrant Filipinos, or practically anyone for that matter, to send money to the Philippines for free. The catch includes two things:

(1) The first transfer is FREE of any fees;

(2) The coupon code will expire in seven (7) days

When you login to the XOOM.com website, you have to enter the coupon code XOOM4FREE located at the bottom of the “Payments Page”.

For more information, call XOOM in North America through 1-888-993-3966 or go to their Help Center website.

Thanks to Ondoy and Pepeng: Lumakas ang halaga ng peso kontra dolyar.

Kaninang umaga nagpunta ako sa “remittance center” upang magpadala ng pera sa Pinas. Aba, ang bilis umakyat ang halaga ng peso. Biruin mo, ang palitan ngayon ay 1 PHP = 0.178 MOP (Macau dollar), samantalang nung huli kong padala nung 25 September, ang palitan pa nun ay 1 PHP = 0.173 MOP. From my point of view, lugi ako sa aking kita ngayon kasi sa bawat 100,000 PHP na padala ko sa Pinas, magbabayad ako ngayon ng 17,800 MOP, samantalang nung 25 September, 17,500 MOP lang ang kapalit nun. In just a matter of 20 days, lugi na ako ng 300 MOP o mahigit 1,700 PHP for every 100,000 pesos na ipapadala sa Pinas. Di bali, kelangan ko magpadala e!

Isa pang mas kupal ay ang mga remittance centers mismo. Ang totoong foreign exchange rate ngayon ay 1 PHP = 0.1725 MOP, that means, for every 100,000 PHP na ipapadala ko, 17,250 MOP lang sana ang aking babayaran. But, for every 100,000 PHP na ipapadala ko sa Pinas, kikita ang mga remittance centers ng 550 MOP o mahigit 3,100 PHP, di pa kasali dyan ang “service charge”. At hindi lang ako nag nagpapadala ng pera — marami kami! Di lang libo-libo ang OFWs kung di milyon-milyon! At di lang nagpapadala ng pera ang OFWs ng once a year, kung di every month! Kaya, dyan nabubuhay ang bansang Pilipinas — sa pawis at dugo, sa hirap at tiyaga ng mga “modern slaves”!

Bilang OFW, wala kaming ibang alternatibo at epektibong paraan sa pagpapadala ng pera sa Pinas but through the remittance centers. Kesa naman i-postal mail namin ang aming mga dolyares. Naku po, isa pang di mapagkatiwalaan yang Philippine Postal System na walang ka siste-sistema. Tuwing paparating ang Pasko, binabasket nila ang mga makakapal na sulat galing ibang bansa. Kaya daw dati, kung magpapadala ka nang package galing abroad, halimbawa magpadala ka nang sapatos, huwag daw pagsabayan ang isang pares ng sapatos. Otherwise, mawawala yan on the way. Dapat daw, this month, ang kanan o kaliwang-sapatos muna, then after a month or two, kaliwa o kanang-sapatos na naman. Nalaman ko yan galing sa aking mga kaibigan mismo na nagtrabaho dati sa PhilPost. Sabi pa nya humina na raw ang “racket” ng PhilPost since the “technological revolution”. Hindi na uso ang “sulat-kamay”… may email or text na kasi. At di na rin uso ang pagpapaipit ng dolyares sa mga sulat o card, may “remittance centers” naman kasi.

Thanks to Ondoy and Pepeng: Bumaha ang perang padala ng mga OFWs and foreign aid sa Pinas. Aminin man ng mga ekonomista o hindi, may “maganda” pa ring idinulot sina Ondoy at Pepeng sa ating ekonomiya.

But No-Thanks to Ondoy and Pepeng: Sinasamantala ng karamihan sa ating mga kababayan ang trahedyang ito. Marami sa ating mga kababayan abroad ang nagnanais kuno na makatulong sa mga biktima nina Ondoy at Pepeng. Nagkaroon sila ng samu’t-saring pakulo, kagagohan, kalokohan, upang makalikom ng limpak-limpak na salapi na ipapadala kuno sa mga biktima ng kalamidad, pero ang perang kanilang nalikom ay ipinadala sa kani-kanilang sariling pamilya at ginamit nila para sa kanilang sariling kapakanan. Isang halimbawa dyan ay ang “dinner for a cause.” Nagbayad ka ng P2,000 pesos for a buffet sa halagang P250 pesos lang na kinain mo, tapos ang “proceeds” daw ay mapupunta sa mga biktima nina Ondoy at Pepeng. How would you know? Well, it’s a matter of trust. But how can you trust a politician or a political clan na nag-organize ng ganung kagagohan at kalokohan? Kaya, ang hamon ko sa mga Pinoy, huwag magpagago at magpaloko — maging mapagmatyag! It’s not a sin not to trust the un-trustworthy!

But No-Thanks to Ondoy and Pepeng: Ang mga “in kind” daw na donations ay na-Ondoy at na-Pepeng din. Nakay Mayor at Kapitan daw ang mga magagandang gamit na para sana sa mga biktima ng kalamidad.

But No-Thanks to Ondoy and Pepeng: Gusto pa ng economic adviser ni Arroyo na si Go-beer-nor Joey Salcedo ng Albay na manghingi ng USD1-B (isang bilyong dolyar) na donasyon galing sa international community. Ang kapal! Nag-set pa ng quota! Naku po, ang laki nyan! Hindi po pwedeng i-audit ng COA ang donations, kaya, hala sige… kaliwa’t kanan ang pagnanakaw at pamumulsa nang mga buwaya sa gobyerno, lalo na ang mga tatakbo sa darating na halalan! Syempre, hihingi rin ng kapalit ang mga banyagang bansa na nagbigay ng donasyon sa Pinas. It’s like bidding. Ang pinakamataas magbigay ng donasyon ay siyang nasa priority list ng gobyerno! Sige, pasok kayo sa Pinas ng walang visa — and exploit our natural resources, sexploit our people! Pag ni-rape ang isang babae sa Subic ng Sundalong Kano, sige, oki lang yan — puta naman ang babaeng yun!

But No-Thanks to Ondoy and Pepeng: Inaprubahan na nang Kongreso (both in the House of Repress-SIN-ta-THIEVES and SIN-nate) ang P12-B calamity fund! Naku po, malaking pera rin for “relief operations, rehabilitation and reconstruction” or (R.R.R.). How would we hold our government officials accountable for every single penny that they will use in the name of R.R.R.? Hindi kaya “Rest, Recreation, and Re-election” ang ibig sabihin ng R.R.R. na yan?

No-Thnks to Ondoy and Pepeng: May forecast ako: Few months from now, mababalitaan na lang natin na ang P12-B supplemental calamity fund ay ibinulsa NA NAMAN ng mga walang-hiyang kupal sa administrasyon na yan! As usual, magwewelga na naman ang mga tao. Magpa-file na naman ng impeachment sa Kongreso. At mababasura na naman ang impeachment complaint dahil sa dami ng kaalyado, ang “legion” ng Pangulo.

Di na tayo natuto sa Fertilizer Scam na ginamit ni Arroyo nung 2004 para mapanalo ang eleksyon, magkakaroon na naman ng Calamity Fund Scam para mapanalo ang kulelat na pambato ng administrasyon sa 2010!

Thanks to Ondoy and Pepeng: Umangat ang “ratings” ng ating mga presidential hopefuls ayon sa pinaka-latest na SWS survey. Umepekto na siguro ang lata-latang sardinas, sako-sakong bigas at kahon-kahon na noodles na ipinamudmod ng mga pulitiko sa mga biktima nina Ondoy at Pepeng. Oo, apektado na ang utak ng ating mga kababayan dahil sa kakulangan ng sustansya sa kinain nila, kaya di na tuloy gumana ang kani-kanilang utak! What nutritional value can they get from canned sardines and instant noodles? Wala! MSG o monosodium glutamate lang!

Thanks to Ondoy and Pepeng: Pumasa na sana sa grading o semester na ito ang mga estudyante sa mga lugar na sinalanta ng kalamidad — yan kung pinagbigyan ng DepEd ang panawagan ni Sen. Chiz Escudero.

Despite regulatory hurdles, it is very much possible for Indian banks dealing in para banking to run Islamic Banking Windows in India. Such windows may be just opened through adding any counter or specific desk to cater needs of customers seeking Shari’ah Complaint banking. Under present banking regulations, following may be found ready to cater as Shari’ah Compliant products and services at Islamic Banking windows. 

A. Deposit Side Products & Services

1. Current Account.
2. Internet Banking services for receiving, disbursing and transferring funds.
3. Online Trading Services
4. Safe Deposit Locker Services
5. Mutual Fund Deposits (With floating and fixed maturity).
6. Consultancy Services (On Commission basis) to customers seeking Shari’ah Complaint Investments in Mutual Funds.
7. Consultancy Services (On Commission basis) to customers seeking Shari’ah Complaint Investments in Equities / preferred Shares.
8. Resident Foreign Currency Account (For NRI’s returning home)
9. Foreign Currency Non Resident Deposits (For NRI’s)
10. Equity Deposits ( conditions prescribed in contract for bank as trustee of any company)  

B. Lending and Investment Side Products & Services

1. Leasing Finance business
2. Hire purchase business
3. Factoring services
4. Disbursement of corporate benefits services
5. FOREX Services
6. E-Freight Services
7. E Tax services
8. Retail Sale of Gold Coins
9. Foreign Inward Remittance Services
10. Gift Cheques Services
11. Gift Card Services
12. Pay Roll Card Services
13. Foreign Travel Card Services
14. Initial Public offer Services
15. Mutual Fund Business
16. Letter of Credits
17. ATM Services
18. Issuance of Bank drafts
19. Issuing bank guarantee in favour of customers
20. Broking services 

Though these products and services are already available with many banks, general public don’t have the understanding that these are Shari’ah Complaint. Thus ignorance prevails in the market both for the potential customers and the bankers. Any bank may just declare to open Islamic Banking window with such products and services and successfully catch attention of customers seeking Shari’ah Complaint banking in India. If any bank is having Islamic Banking windows in India and abroad, such bank will have edge over others to draw investment funds for India by assuring the investors that investment will be suitably placed in India through proper Shari’ah complaint linkages to the end level in India as well. 

The State Bank of India (SBI) with its widest network and largest asset base may take lead in attracting customers looking for Shari’ah based banking services. Even if other banks take due leads, the rich experiences of SBI in dealing with para banking activities will help optimizing the opportunity faster than other banks. For Islamic banking at international level, Indian banks may have stiff competitions from foreign banks, but in national market there is no competition as such because at present no bank is offering such services. The bank which makes first announcement may take the lead in accruing the untapped market of Islamic Finance in India and others would have to follow that bank. 

SBI is already having a subsidiary called SBICAP Trustee Company Ltd. (STCL) to work as a trustee for companies. It empowers SBI to raise deposits and deploy funds in prescribed trade / industry on specified conditions in accordance to customer’s need. So, it may not be difficult for SBI to cater the customer’s need looking for Shari’ah Complaint financial products and services. With long and varied expertise in commercial and investment banking, SBI is in a good position to innovate financial products to meet new challenges.   

It would be easy for the first bank to accrue the untapped market by making Islamic Cooperative Credit Societies and NBFCs as their Business Correspondents to promote such products in Indian market. Once a bank enrolls such Indian Islamic Financial institutions of India (IIFIs) as their Business Correspondent, it would be difficult for other banks to find customers for their Shari’ah Compliant products. Traditionally the customers seeking Shari’ah Compliant financial products and services have been served by these IIFIs only and it would not be easy for new banks to get new customers for Islamic banking windows unless it has any IIFI as its registered Banking Correspondent. 

To start any Islamic banking windows in India a bank just need to have services of Shari’ah Advisory Board who may take care of all needs related to opening up and development of Islamic banking windows in India. This board may finalize the products; identify the potential market and channels to promote this business. Banks just need to make an announcement of going for Islamic Banking windows in India, the due resources will follow on. 

Hope we will be soon observing some changes in nature and extent of Islamic financial business in India. Expectedly after launch of Islamic banking windows in India by any bank, there would be competition among other banks declaring their specific products as more Shari’ah complaint. The one who better care to handle their customers will be having better market share of Islamic banking windows in India. Besides SBI, the other runners in this course are Standard Chartered Bank, HSBC, and Development Credit Bank etc. Some more names may be counted soon after first official announcement by any bank. Though today, there is no declaration about Islamic banking windows in India; in near future we expect to see series of advertisements for Islamic Banking windows in Electronic and Print Media especially Urdu media catching our attentions.

Wells Fargo & Company (NYSE: WFC) —with its remittance network member Bank of the Philippine Islands (BPI) – is temporarily eliminating all remittance transfer fees (normally $5 or $7) for customers sending money using the ExpressSend® service to friends and family in the Philippines impacted by Typhoon Ketsana (also known as Typhoon Ondoy). The fee waiver is effective September 29 through October 12, 2009.

ExpressSend customers can send up to $3,000 a day for $5 if originated from an eligible Wells Fargo account (or $7 if originated from cash). The fee will be waived September 29 through October 12, 2009. Recipients can claim their funds at more than 800 branches and 1,500 plus ATMs throughout the Philippines.

Read more at [Wells Fargo article].

If it was easy, everyone would be doing it. However, when the biggest players in the game struggle to get it right, then we know the problem is a nightmare.

The game is cross border remittances.  In Africa, according to the IMF, this is US$ 23 billion per year game. Besides a lot of this money moving “informally” into and around our continent, there are some large players who dominate the remittance game, notably Western Union and MoneyGram. There is, however, still plenty of room for other players, and US$ 23 billion is a prize that many find irresistible.

When arguably the two biggest players in their fields decided to team up it seemed as if the game was over. In February 2007 Vodafone (the world’s largest Mobile Network Operator by turnover) & Citigroup (the world’s largest Bank) announced a worldwide Mobile Financial Remittance venture. Their plan was, “… to launch a Vodafone-branded mobile-based international money transfer service targeting the global remittance market worldwide. The new service will provide senders and receivers of money with a superior method for sending money home that is convenient, cost-effective, secure, transparent, and easy to use.*”

The initiative would “couple Vodafone’s global reach, brand recognition and operational mobile money transfer service with Citigroup’s worldwide network, unrivalled international payments capabilities and existing global remittance solution. It builds upon Vodafone’s recent successful pilot of the M-PESA mobile money transfer service by its affiliate in Kenya, Safaricom.*”

This is a formidable team, and Africa, Kenya specifically, is its striker. How could one go wrong with a combination of “global reach” and “worldwide network”, “operational mobile money transfer service” and “unrivalled international payments capabilities”. This is the dream team. All competitors were shuddering at the prospect of having to meet them in the market.

After just over a year waiting to see this super team in action we heard in March this year that “the venture had run into legal hurdles.**”

The problem seems to be “… that UK authorities are demanding that Safaricom meets the regulatory requirements governing banking, money transfers and exchange rates before it can be allowed to enter into the lucrative international money transfer business.The roll-out could further be kept on hold until Kenya passes appropriate anti-money laundering laws.**” It seems that there are some rules that the referee is insisting on and until the super team agrees to them, they will not be allowed to play in the league. It also seems that most of the problems lie with the striker, Kenya’s Safaricom. Although nobody can deny the achievements of Safaricom and M-Pesa, the problem is that they were playing in a different league.

Banking and telecommunications are the heavyweights of any economy, and they are on a collision coarse as they fight for supremacy in the field of payments. The nimble, innovative and young telecommunications industry is flexing its muscles in front of the staid, conservative banking business. We all expect the telecoms players to win. However, the Citi/Vodofone incident shows that maybe this is not as clear cut as it seems. Although it seems that they are playing in the same game, in reality, they are actually playing to different sets of rules. The telecoms players abide by the rules set by the telecoms regulator and the banks abide by the rules set by the banking regulator. On inspection, these rules are worlds apart. In fact, they might be so different that it could be said that they were actually playing different games, in different stadiums.

So which is better? Tennis or golf. Both use round balls which are hit with instruments. In effect what we have here are nimble tennis players joining with solid golfers in order to change golfing. The problem is that they still want to stick with tennis rules and now the golfing referee has refused this until they comply with golfing rules. Or is it the other way around. Should the staid banking regulators be changing their rules to accommodate the nimble telecoms operators. Which ever way around, a you cannot have a sensible game unless you have a single set of rules which everyone abides by.

So which league will win? I would back the Banking rules league. Their business is looking after money. They might be boring about it, but they have a lot of experience. They are also used to playing in the international league. They are part of systems that have been moving money around the world for decades. Banks have always been team players. They partner with the current major remittance players. Most importantly. Banks play by the rules. They are held accountable and they have to keep reserves to make sure that ordinary people do not loose out. Unfortunately these rules are expensive to implement and contribute enormously to the cost of banking, but they are there for a very important reason. This is also why they are not nimble. I am sure that when the telecoms operators start becoming banks, or start having to meet banking regulations, suddenly their nimbleness will be similar to that of the banks, but at least both parties will be playing to the same rules. May the best team win!

*Press release – CitiGroup – http://www.citigroup.com/citigroup/press/2007/070212b.htm
**Press release – Business Daily – http://allafrica.com/stories/200803240968.html

Published in Financial Technology May 2008

Shame on them — who else, but the Philippine government officials! They asked for help from the international community for a relatively small damage created by Typhoon Ondoy. To me, this is seen plainly as “fund-raising” by the administration to boost its standard-bearer’s popularity to the poor victims who are easy prey for “utang na loob”. These officials cannot afford to share the money they pocketed from the national coffer, from the kickbacks of the ghost projects of these shenanigans. And these cabinet secretaries blew their own horns that they will donate their “two months salary” to poor victims… And how much is that worth? Roughly 50,000 pesos! Shame on them! The Philippine government has billions of pesos in “emergency/calamity funds”… and these corrupt officials are not willing to use them (not just yet unless they’re sure that these “help” can be translated into solid votes come election in favor of the administration hopefuls). They already reserved the budget to fund Teodoro’s campaign! Let the Philippine government face this! Shame on them! What happen to the billions of US dollars of OFW remittances and to the billions of pesos of “road users tax”, then? The damage was just less than a billion pesos and yet the corrupt Philippine officials can waste billions of US dollars. Shame on them!

Would you be happy with metered internet in return for enforced net neutrality? | Boing Boing Gadgets.

Sabtu, 12 September 2009 | 03:57 WIB

http://cetak.kompas.com/read/xml/2009/09/12/03572128/uang.dari.luar.negeri.melejit..

Jakarta, Kompas – Bisnis pengiriman uang dari luar negeri atau remittance yang dilakukan perbankan meningkat pesat. Perbankan nasional juga semakin giat membuka gerai pengiriman uang baru di luar negeri untuk meningkatkan basis nasabah.

Pada Agustus 2009, jumlah pengiriman uang dari luar negeri melalui BNI tercatat Rp 17,35 triliun, meningkat 17 persen dibandingkan bulan sebelumnya sebesar Rp 14,82 triliun.

Selama periode Januari-Agustus 2009, total jumlah uang yang dikirim ke Tanah Air melalui BNI sekitar Rp 100 triliun. BNI menargetkan, selama tahun ini nilai pengiriman uang ditetapkan Rp 200 triliun.

Direktur Treasuri dan Internasional BNI Bien Subiantoro, Jumat (11/9) di Jakarta, menjelaskan, peningkatan nilai pengiriman uang yang signifikan pada Agustus 2009 dipicu karena adanya bulan Ramadhan.

”Setiap Ramadhan, tenaga kerja Indonesia di luar negeri biasanya mengirimkan uang lebih besar kepada keluarganya di Indonesia untuk persiapan Lebaran,” kata Bien.

Peningkatan volume pengiriman uang juga disebabkan dalam beberapa bulan terakhir, BNI gencar membuka gerai pengiriman uang di sejumlah negara. Pada bulan lalu, BNI membuka gerai di Hongkong dan Singapura.

”Kami juga tengah menjajaki penambahan gerai di Korea Selatan dan Taiwan,” tutur Bien. Di Korea Selatan, jumlah TKI tercatat 30.000 orang, sedangkan di Taiwan sekitar 130.000 orang.

Memanfaatkan TKI

Felia Salim, Wakil Direktur Utama BNI, saat meresmikan gerai pengiriman uang di Singapura mengatakan, prospek pengiriman uang di Singapura sangat bagus mengingat ada 110.000 orang warga Indonesia di Singapura yang secara rutin melakukan transaksi pengiriman uang.

”Bisnis pengiriman uang merupakan salah satu fokus BNI yang ingin menjadi transactional banking terbesar di Indonesia,” papar Felia Salim.

Saat ini BNI memiliki 5 cabang, yakni di Singapura, Hongkong, Tokyo, London, dan New York, serta 1.100 bank koresponden di seluruh dunia.

BNI juga telah menambah gerai pengiriman uang di beberapa negara di Timur Tengah, antara lain Arab Saudi, Uni Emirat Arab, Qatar, Jordania, dan Aljazair.

Selain BNI, Bank Mandiri juga gencar meningkatkan bisnis pengiriman uang dari luar negeri. Setelah pada bulan Agustus 2009 menandatangani kerja sama dengan dua bank asal China, ICBC dan Bank of China, untuk transfer mata uang yuan, mulai bulan September ini Bank Mandiri siap melayani pengiriman uang dari Malaysia, khususnya membidik pasar TKI.

”Pada 3 September 2009, Bank Negara Malaysia telah menyetujui Bank Mandiri membuka layanan pengiriman uang di Malaysia,” ujar Thomas Arifin, Direktur Treasuri dan Internasional Bank Mandiri.

Menurut dia, layanan pengiriman uang di Malaysia akan dilakukan oleh Mandiri International Remittance (MIR), anak perusahaan Bank Mandiri yang secara khusus didirikan untuk mengembangkan bisnis pengiriman uang Bank Mandiri.

Izin tersebut sejalan dengan strategi Bank Mandiri untuk meningkatkan pendapatan dari jasa (fee based) pengiriman uang dari Malaysia ke Indonesia, Singapura atau negara lain di mana Bank Mandiri memiliki cabang.

Menurut Thomas, pemilihan Malaysia sebagai lokasi pengembangan bisnis pengiriman uang Bank Mandiri cukup beralasan mengingat jumlah TKI di Malaysia lebih dari 2 juta orang.

Sementara itu, jumlah TKI yang diberangkatkan ke Malaysia meningkat rata-rata 15 persen setiap tahun. (FAJ)

Eleven (11) of the biggest Rural Banks, top 3% in the country, together with the Economic Resource Center for Overseas Filipinos (ERCOF) join hands in helping our 10 million OFWs by providing them and their families traditional banking and microfinance services in their respective towns and provinces. The Bayaning Bayanihan campaign seeks to create a link between our OFW’s and the services of their Rural Banks that are located near their families. Remittance can now be done through the partner Rural Banks making it safe, fast and secure. Presidents and CEO’s from left to right are Mr. Edwin Fojas of Bangko Mabuhay, Mr. Reggie Ocampo of First Macro Bank, Mr. Jose Misael Moraleda of Camalig Bank, Mr. Mitch Gomez of GM Bank, Ms. Teresa David Carlos of Bank of Florida, ERCOF Executive Director. Ding Bagasao, Atty. Francis Ganzon of Bangko Kabayan, Atty. Nicolas Lim of 1st Valley Bank, Mr. Jaime Lopez of Bank Victorias, Gen. William Hotchkiss III of Cantilan Bank, Atty. Edward Garcia Jr. of Quezon Capital Rural Bank and Mr. Ives Jesus Nisce II for Rang-ay Bank join hands in support of our OFW’s.

Rural banks have been crucial in helping finance small businesses in the province. This is attested to by the World Bank and the Bangko Sentral ng Pilipinas. Here is an article that appeared in the Manila Times which provides more information on how Rural Banks help OFWs and SME’s in the provinces.

RBAP
By Atty. Francis Ganzon

Local rural banking sector takes pride in its role in the countryside.

In a recent article published in The Economist, World Bank Chief Economist Justin Lin underscored the importance of small banks in developing countries where a large number of lower income sectors, which need to be taken care of, reside.

According to Lin, “Smaller domestic banks are much better suited to providing finance to the small businesses that dominate the manufacturing, farming and services sectors in developing countries. There is evidence to suggest that growth is faster in countries where these kinds of banks have larger market shares, in part because of improved financing for just these kinds of enterprises.”

Lin cited how Japan, South Korea and China’s “adherence to simple banking systems” kept them away from financial crises on their road to
becoming high-income countries. In the United States, local banks were dominant during the industrial phase of its development.

I could not agree more with the World Bank observation. The WB article written by no less than the institution’s chief economist only validates the rural bank industry’s vital role in developing countries like the Philippines.

Thus, to be able to achieve an ideal financial “ecosystem” where all client sectors—from small to big—are served well, small banks—the rural banks, most especially, have to co-exist with the large banks to provide the needed balancing factor. This is to ensure that the country’s financial system does not leave out especially the marginalized sectors of the society.

This has been the thrust of the rural bank industry since its inception more than 50 years ago—to serve the unserved and underserved
segments of the population. This thrust is supported by the fact that in more than 40 percent of the areas where rural banks are located,
there are no other forms of financial institutions to be found aside from rural banks. This shows how rural banks are able to serve the
needs of underprivileged and previously unserved communities in the country.

The rural bank sector releases approximately P2.7 billion loans every month as working capital for micro-entrepreneurs, thereby serving as a catalyst for development.

Based on data from Bangko Sentral ng Pilipinas (BSP), more than 800,000 micro-entrepreneurs were able to avail of financing totaling
to P8 billion as of end-2008. This accounts for more than 30 percent of the total number of micro-entrepreneurs served nationwide, and 50
percent of the value of total loans to this sector.

Rural banks’ exposure to small enterprises is even greater at P32.4 Billion, or 51.9 percent of its total loan portfolio as of latest
complete data from the BSP dated end-December 2007. Loans extended to medium enterprises amounted to P8.4 billion in the same period. In toto, RBs have a 75.4 percent compliance rate for lending to the SME sector vs. the minimum requirement of 8 percent. Moreover, 2008 data, once available, are expected to show an even more robust lending to the SME sector.

Any business activity or enterprise may be categorized as micro if it has a capitalization of not more than P3 million, small if above P3 million but not more than P15 million, and medium-sized if above P15 million up to P100 million.

Imagine how many rice farmers and millers, poultry and hog growers, mini-grocery owners, and handicraft manufacturers that rural banks have helped fund. Imagine how many of these small town entrepreneurs have succeeded in establishing formidable businesses with the help of their local banks.

Indeed, we at the rural bank industry have helped realize thousands of dreams of people in the countryside and have supported the overall growth and development of the communities where their businesses are located. Needless to say, our service to the previously unserved and underserved segments is one of the best, if not the best service fulfilled by the industry.

Atty. Francis Ganzon is the president of Bangko Kabayan (A Rural Bank) Inc., a 52-year-old rural banking institution serving its “kabayans”all over the Province of Batangas. He served as president of the Rural Bankers Association of the Philippines (RBAP) for FY 2006 to 2007 and was the chairman of the Rural Bankers Research and Development Foundation for FY 2008 to 2009. He finished his degree in Law at the Ateneo de Manila University.

Please see the Bank list guide of Bayaning Bayanihan.  These Rural Banks are in the top 3% of the Rural banking industry in the Philippines and may be present in your hometown.  Click on the active links to visit their websites for more information. Halina, Bayaning Bayanihan Na!

Gone are the days when the Rural Bank (RB) was viewed as a small operation in the backwoods of the Philippines. Today Rural Banks are as modern as any city bank – sometimes even more modern than their city counterparts. In fact in some of our towns Rural Banks are not rural, but THE BANK of choice for community residents.

Rural Banks are the cornerstone of countryside development in the Philippines. All are privately owned and funded but closely monitored by the Central Bank of the Philippines or Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit and Insurance Corporation (PDIC). They are platforms for banking services and loans for farmers and Filipinos living in small towns in the provinces.

What distinguishes a Rural Bank from big name banks like BPI, BDO, Citibank and others? Here are a few:

1) RB’s are given a specific area of operation or province where they can operate as determined by the BSP.
2) RB’s are homegrown and usually owned by people who were born and live in the area where the RB operates. Hence, they are locally known by the people in the community they serve.
3) RB’s are NOT allowed to invest their funds/deposits/assets in other parts of the country or outside of it. They are only allowed to invest in the areas where they operate. Hence there is absolutely no chance that it can be affected by world financial crises.
4) RB’s invest in the province in the form of loan packages that they provide owners of small businesses or for community development projects where they operate.
5) Some of the biggest RB’s are allowed to operate in several provinces, depending on their performance and liquidity. This is determined by the BSP.
6) Most RB’s have ATMs, Remittance services, Peso and Dollar Accounts, Checking accounts, Time Deposits, Micro financing loans and OFW placement loan packages.

When you open an account in a Rural Bank, you are helping improve the economy in your hometown. Why? Because RB’s lend to members of the community who want to establish businesses in your hometown. In turn, these businesses create job opportunities for the community as well.

If you are an OFW, what benefits can be derived from opening an account in the RB in your hometown?

1. Safe – All transactions are conducted within the bank premises and are processed through your account.
2. Secure – Deposits are covered by Insurance as much as P 500,000. Pesos guaranteed by the PDIC.
3. Trust – The bank manager or even the owner is known by you or by members of your family. Even the employees may have been your classmate or their children are classmates of your children. Iba pa rin ang magkababayan, diba!
4. Convenience – Since an RB is located in your hometown, it is convenient to transact business with them. Hindi mo na kailangan lumayo o di na kailangan pang pumunta ng pamilya mo sa ibang lugar.
5. Guaranteed Remittance – Your remittance or hard earned money can be received by relatives in their respective bank accounts within the bank. Wala ng kaba!
6. OFW Placement Loan Packages – For OFW’s with a definite contract, some RB’s provide placement loan packages that assist with the expenses of the OFW prior to departure.
7. Financial Advise – Rural Banks can provide the best financial advise for OFW investments as they know what businesses usually thrive in the area they operate in.

8.  Higher interests – Some RB’s provide higher interest rates for long term time deposits. These are tax free and still covered by the PDIC up to P 500,000. pesos.

Now, it can’t be helped that there are some RB’s who have questionable reputations. Here are some things to look for to determine a Rural Banks strength.

1) Determine how long the Rural Bank has existed. Are they newly established or, have they been in the province for over 20 to 50 years.
2) How many branches do they have? Is it a one branch operation or multi-branch and multi-province.
3) Honest RB’s would have a website where all financial information are available.
4) Visit the bank branch and ask questions. Huwag mahiyang magtanong dahil gusto rin naman nilang maging customer kayo.
5) Ask relatives and friends about the bank. Siguradong mayroong may ka kilala ang manager doon or isa man lang empleyado na maka tutulong sa iyo.
6) Check with the BSP as they have a list of all the RB’s in the Philippines and those who are not financially stable/blacklisted.

When you open an account in your Rural Bank, you have already started the process of Bayanihan in your community. Ang pagtangkilik sa kanila ay pagtangkilik sa inyong bayan tinitirahan at babalikan. Halina, Bayaning Bayanihan na!

Making the decision to actually plan your life – set goals etc is the easy part. Actually sitting down and doing it? well, that’s another story.

The first thing that made me wake up and realise i had to do this was losing my brother. My brother died from a preventable disease and i felt (and still do) like i didn’t do enough for him while he was ill and i just wasn’t there because i believed i had a lot of time with him left. his death made me realise that life is unexpected and time is short. we don’t have time to waste, because every moment counts. it’s true when they say, live your life like every day is your last day.

But it also made me think about my work. is this what i want to be doing, when i know deep down we’re being cautious with the truth? working in the media, you realise how powerful information is, and how you can change people’s views and attitudes, but sometimes people don’t want the masses to have access to ‘real’ information. this is for a variety of reasons – they’re worried about the reactions they can’t predict, will it be more of a problem or be part of the solution? And of course there is a very real possibility that their jobs will become redundant. cynical, but true.

After coming back from my brother’s funeral with all this top of mind – and the fact that my family, living on a whole different continent, might be annoying as hell, but they’re still my family and i missed them. i wasn’t going to let my material wants affect my commitment to building and supporting my family – you know the story of most of us African sending money back home – remittance. i wasn’t so good with it and it was simply because i didn’t want to pay western union their ridiculous commission fees or worse still, because i wanted to buy shoes and go out, drinking champagne and ‘living the life’! but i couldn’t help but wonder if i had sent money regularly would my brother have had better healthcare, if i’d paid for cable, would he had more of a distraction (don’t underestimate the power of good tv to relieve your own misery), and thereby living a longer, better quality of life? these are thoughts i do struggle with daily

like so many other people, retail therapy plays a big role in my life. the frustrations, anger and annoyance from work makes me want to go out and buy shoes. my lack of close friends makes me go out and buy something to compensate for the loniliness. but none of this helps. yes i need financial discipline, but there’s something to be said for my work-life balance, or lack of it.

so when i came back to work and realised that the same frustrations were abound and the way i’ve been treated and under-appreciated (ok they haven’t been that bad and at this difficult time have been really understanding, but on a work level, they do take me for a ride), i made the decision that it’s time for me to leave. looking at my savings account – i do have one, but what’s in there is laughable at best – i knew i couldn’t just up and leave i needed a plan. in the 2 weeks i’ve been back at work, i’ve got as far as planning that i will get my MA in management studies and then leave the company at the end of 2010. but that’s as far as i’ve gotten.

today, i found out that yet again my boss (senior colleague, some prefer) is invovling my junior colleague – who granted is quite intelligent and creative – in areas that i personally feel should be discussed at a higher level – yes, my level. i’m all too often problem solving and saving her butt and indeed her projects from failure, yet i’m being left in the dark. i’m used to this now, and i’ve realised that this isn’t going to change, but i’m way too talented for this and it’s leaving me bitter, twisted and plain angry.

it did motivate me to go out and get a visual board. that might not be the actual term, but i read it in the secret (yeah i read it!), about having a board where you put up the stuff you want so that you can creatively visualise it – if you see it (dream it), you can have it. i’ve also thought a little bit more about what i want to do in life and as i begin to sketch it out, i’ll be sure to share it.

someone once said, it’s not the people who have love d you who motivate you, but the people who have hurt you. and not that these people have hurt me per se, but i’m done with being taken for a mug. besides, if we’re not constantly recreating/reinventing ourselves, how will we ever evolve? as Miles Davies said, ‘if anybody wants to keep creating they have to be about change’.

besides, change is never a bad thing, it’s our fear that limits us – something i’m attempting to do, liberate myself from fear. wish me luck!

MEXICO CITY — The amount of money sent home in April by Mexicans working in the United States fell by almost one-fifth compared with a year earlier, the central bank said Monday, marking the largest decline since the authorities began keeping track of such transfers.

Remittances, as the transfers are known, have been sliding since the end of 2007, when the construction industry in the United States began its sharp decline. Many Mexicans who had found work in building and landscaping during the boom years quickly lost their jobs. Then, as the overall United States economy fell into a recession, Mexicans in other industries, including restaurants and manufacturing, also lost their jobs.

But the pace of decline in the money transfers gathered speed this year, falling 8.7 percent over the first four months compared with the same period last year, the central bank, the Bank of Mexico, reported. Migrants sent $1.8 billion in April, 18.7 percent less than in April 2008.

There is no single explanation for the sharper drop in April, said Eliseo Díaz González, an economist who studies remittances at the College of the Northern Border outside Tijuana.

Migrants have either lost their jobs or taken jobs with lower pay. At the same time, without good prospects of finding work in the United States, many Mexicans have decided not to risk crossing the border illegally.

“We are seeing the aggravation of all these trends,” Mr. Díaz said. “With opportunities for employment in the United States shutting off, we cannot continue to export labor to the United States anymore. The prize for migrating no longer exists.”

Philip Martin, an expert on migration at the University of California, Davis, said it was too early to say if the sharp drop would be repeated in the statistics for May. “It’s going to be down in 2009,” he said, “but the question is how much.”

Along with the big jump in unemployment in construction and the decline in new arrivals — who tend to send more money — Mr. Martin said a possible factor in the newly released figures was that some illegal immigrants might have paid taxes in April in the hope of an eventual amnesty.

Last year, remittances fell 3.6 percent compared with the previous year, to $25 billion. In a recent report, the Bank of Mexico said Mexicans in the United States were disproportionately employed in sectors of the economy, like construction, that had declined the fastest. In addition, a crackdown on illegal immigration, both along the border and in the workplace, has made it harder for Mexicans to find jobs.

Although remittances are one of Mexico’s largest single sources of foreign exchange, their effect is concentrated in particular states and regions. Remittances have helped to reduce poverty in those areas, but that could be reversed if the steep decline continues, Mr. Díaz said.

April was a particularly difficult month for the Mexican economy. Another source of foreign exchange, the tourism industry, was devastated in April by the outbreak of swine flu.

Remittance คือการโอนเงินนะครับเพราะฉะนั้นจะต้องมีผู้โอนเงินและผู้รับโอนเงิน ซึ่งตรงนี้ถ้าเกิดเขามีชีวิตอยู่ใกล้ๆกันและเงินจำนวนไม่มากก็คงจะเดินเอาเงินไปให้กันได้แล้วล่ะ จากประวัติศาสตร์แล้วการโอนเงินมันเกิดขึ้นด้วยการที่มีตัวกลางอย่างสถาบันการเงินเพื่อให้บริการระหว่างต้นทางกับปลายทางที่มีระยะทางไกลกันเพื่อประโยชน์ที่จะลดความเสี่ยงในเรื่องการนำเงินย้ายไป หากถือเงิน 100 ล้านขึ้นรถเมล์อาจจะโดนปล้นเงินหายไปเลยก็ได้

การโอนเงินก็มีหลายแบบนะครับ Remittance เป็นลักษณะหนึ่งเท่านั้น เพราะถ้าต้องการโอนเงินในเชิงการค้าการจ่ายเงินการชำระเงินที่จะต้องมีสัญญา Trading เข้ามาเกี่ยวข้องเพื่อขอในเรื่องของวงเงินและลดความเสี่ยงระหว่างคู่ค้านั้น เขาก็จะบอกไปเปิด L/C เพื่อทำการค้าดีกว่าไหม ผมเลยมองว่า Remittance มันจะเหมาะกับการโอนเงินเปล่า พ่อโอนให้ลูกที่เรียนเมืองนอก หรือไม่ก็ต้องเป็นลักษณะการโอนเงินใ้ห้ักับคู่ค้าที่เชื่อถือกันมากๆจนแบบไม่กลัวโดนโกงกันเช่นพวก Advance Payment นะครับ

คราวนี้ผมก็เลยมานั่งดูว่าเราจะสามารถพัฒนาช่องทางในการโอนเงินอย่างไรและโอนเงินยังไงให้เร็ว ถ้ามองดูเล่นๆนะครับ Player ของการทำ Remittance มีอยู่ 3 ส่วนก็คือ ผู้โอน ตัวกลาง และก็ผู้รับโอน แต่การพัฒนา Channel การโอนเงินและการรับเงินระหว่างประเทศเนี่ยมันจะต่างกันในเชิงของ Inward และ Outward ซึ่งจะกล่าวต่อไปนะครับ (ไม่กล่าวในประเทศละกันนะครับเพราะมันเป็น Case ปกติที่ใครก็โอนกันอยู่แล้วล่ะ)

Remittance ของสถาบันการเงินในไทยถ้าเทียบกับพวกของฝรั่งแล้วเรายังสู้เขาไม่ได้อีกยาวเลยครับ Target ที่เราจะ Implement Channel ไปในระดับโลกผมมองแล้วก็ยังต่างกับเขาอีกเยอะ ถ้ามาศึกษาประวัติของธนาคารฝรั่งอย่าง HSBC หรือ CitiBank แล้วเขาใช้เวลาเป็น 100 ปีในการสร้างฐานอำนาจทางการเงิน ซึ่งสิ่งที่เขาได้เปรียบเราตั้งแต่ต้นคือประเทศพวกฝรั่งนี้เขาจะเดินทางแสวงหาอาณานิคมไปทั่วโลก เมื่อเครือข่ายธุรกิจเขามีมากมายอย่างงี้การทำ Trade Finance ระหว่างประเทศเขาก็จะมีฐานที่ดีกว่าเรามาก ส่วนธนาคารของเรานั้นก็ยิ่งใหญ่ได้แค่ในประเทศเพราะกฏหมายที่รัฐบาลเราล็อกไว้ไม่ให้เกิดเสรีทางการเงิน 100% ไม่งั้นเราล่มแน่ๆครับ

ทีนี้ หากเราจะขยายช่องทางระหว่างประเทศเนี่ยจะทำอย่างไร? ในปัจจุบันนี้มันยากมากที่สถาบันการเงินของไทยจะสามารถเปิดช่องทางที่เป็นส่วนของที่อยู่ในต่างประเทศ เพราะยังไงพื้นฐานทางเศรษฐกิจไทยก็ยังเป็นตลาดเล็กๆเมื่อเทียบกับทุนทีหน้าจากจำนวนประชากรการทำธุรกิจของฝรั่ง รวมถึงความไว้เนื้อเชื่อใจทั้งหลาย แต่ผมมองว่ายังไงก็ตามในส่วนของ Remittance จะเป็นตัว Pilot ธุรกิจด้านการเงินของไทยไปก่อนตัวอื่นๆได้เพราะด้วยตัว Product นี้เองมันเป็นแค่การโอนขอให้เงินถึงผู้รับให้เร็วก็พอแล้ว

ทำอย่างไรให้เร็วได้? ผมว่า Process ตรงนี้อาจจะเริ่มจากการทำ Inward Remittance ก่อน (มันคือการโอนเงินจากต่างประเทศเข้ามาในเมืองไทย) การขยายฐาน Channel ตรงนี้ผมว่าควรจะต้องมาเล่นตลาดล่างก่อนโดยจับลูกค้าเมืองไทยที่ไปใช้แรงงานในต่างประเทศละครับ เพราะผมมองแล้วว่าเมืองไทยเป็นประเทศผู้ส่งออก และปลายทางก็ไม่ใช่คนไทยซะด้วยซิ การจะไปเปิดธนาคารไทยในเมืองนอกมันก็เปล่าประโยชน์ในชิงการค้า ตลาดล่างกับผู้ใช้แรงงานผมจึงมองว่าน่าจะเป็น Phase แรกในการเข้าไปขยายฐานการเงิน

อาจจะต้องสำรวจดูว่าคนไทยที่ทำงานอยู่ในต่างประเทศที่ไหนมีจำนวน Volumn พอที่จะไปเปิด คนกลุ่มนี้ถ้าเราจับเป็น Target และทำ Marketing ดีๆได้จะดีมากครับเพราะอย่างน้อยเราพูดภาษาเดียว ให้บริการด้วยแนวความคิดคนไทยเช่นเดียวกัน เปิดเล็กๆตามห้างร้านในวันเสาร์อาทิตย์ ถึง Rate หน่อย จะแพงกว่าโอนกับธนาคาร Local นั้นผมคิดว่าถ้ามันสะดวกเขาก็ยินดีจะมาใช้บริการกับเรา ซึ่งพอเราเปิดฐานเรื่องการเงินตรงนี้ได้ก็ต้องมาดูว่าในเชิงของ Inbound มายังประเทศไทยนั้นจะต้องมี Location ไหนที่ลูกค้าจะโอนกลับมาบ้าง แล้วเราก็อาจจะ Co. กับช่องทางบริการที่เข้าถึงได้มากกว่าธนาคารเช่น ไปรษณีย์ / 7-11 เป็นต้น แล้วค่อยๆขยายฐานออกไปทีละนิดๆ ประเทศที่คนไทยไปอยู่เยอะๆสามารถ Pilot ได้ผมยังยกให้สิงคโปร์เพราะใครๆก็เข้าเมืองมาที่แถว Orchard แต่อย่างฮ่องกงนี่ผมยังมองว่ามันยังกระจายไปนิดนึง

ในเชิงของการทำ Operation นั้นเราจะสามารถทำได้เร็วขึ้นจากการที่เรามีสาขาระหว่างประเทศ โดยการใช้ Internal ฺBanking Management กล่าวคือผมเชื่อว่าถ้าปราศาจากข้อจำกัดทั้งหลายแล้วการโอนเิงินจากต้นทางถึงปลายทางจะใช้เวลาเร็วมากเพียงแค่ไม่กี่นาทีเพราะเรามีเงินอยู่ทั้ง 2 ทาง เมื่อผู้โอนจ่ายเงินเรา เราก็ปล่อยให้กับผู้รับได้ทันที ส่วนถ้าเราต้องมีการแจ้งอะไรทางกฎหมายก็ค่อยให้มีการส่งตามไปที่หลังโดยการ Credit วงเงินไปอง ตรงนี้ก็อยู่ที่ว่าเราจะทำ Liquidity Management ยังไงให้ดี

ใน Phase 2 เนี่ยจะยากหน่อยเพราะการที่เราจะขยาย Outward Remittance ไปนั้นผมว่ายังอีกเป็น 100 ปีกว่าคนไทยจะทำได้เพราะมันไม่ได้อยู่ที่การสร้าง Brand อย่างเดียว เดิมที่ก่อนหน้านี้พวก Hong Kong Bank จะมาเปิดที่เมืองไทยก็ต้องมาในลักษณะให้บริการลูกค้าฝรั่งมาก่อนจนค่อยๆขยายฐานกลายเป็น Local Bank ผมเลยต้องกลับมานั่งคิดว่าเมืองไทยมีบริษัทที่ไปลงทุนในต่างประเทศเยอะแค่ไหน? ไม่รู้จะคุ้มกับการไปทำหรือเปล่า ตรงนี้รัฐบาลอาจจะต้องช่วยสนับสนุนธุรกิจไทยไปลงทุนต่างประเทศให้ได้ก่อน ธนาคารและบริการถึงตามไปได้ หรือไม่ก็ต้องใช้วิธี Take Ownership ธนาคารในต่างประเทศครับ ไม่รู้เราจะพร้อมขนาดนั้นหรือ แต่ที่แน่ๆ UOB CMIB จากสิงคโปร์และมาเลย์เขาเดินหน้าเป็น International Bank ไปเรียบร้อยแล้วครับ Phase 2 ผมเลยต้อง Pending อยู่นะ

ผมเคยเขียนเรื่องเกี่ยวกับการทำ Remittance ว่ามีบางบริษัทอย่าง Western Union นั้นสามารถใช้วิธีโอนตังไปมาระหว่างประเทศได้อย่างรวดเร็วมากกว่าธนาคารโดยทั่วไปเพราะระบบของเขาไม่ได้ผ่านการทำ Interbanking transfer กันอย่าง Western Union จะทำการวางเงินไว้หลายๆที่ ใครจะโอนก็แค่ไปบอกปลายทางให้ Cash เงินจ่ายไป ซึ่งตรงข้ามกับธนาคารโดยปกติที่จะต้องโอนเงินกันไปมาผ่าน Clearing ระหว่างประเทศอย่าง SWIFT เพื่อบอกว่าใครต้องโอนต้องจ่ายกันเท่าไหร่

Remittance Express นี้ผมพบที่ห้างสรรพสินค้าบนถนน Orchard Road เมือง Singapore แรกๆผมก็มองว่าทำไมคนต่อคิวกันเยอะจังเพราะอะไร พอไปดูนั้นก็คือเป็นบริการโอนเงินระหว่างประเทศอย่างเร่งด่วน แต่มันต้องมีอะไรพิเศษแน่ๆ ผมเลยเข้าไปดูว่ามันคืออะไร สิ่งที่ผมค้นพบก็คือพวก Express เหล่านี้ก็ใช้หลักการในเรื่องของ Finance เช่นเดียวกันกับ Western Uion เช่นใช้ค่าบริการที่แพงว่า อัตราแลกเงินที่ไม่ได้ดีกว่า แต่ต่างกันที่เรื่องการทำ Marketing ซะมากกว่า

การตลาดของ Remittance Express ของที่สิงคโปร์นั้นมีอยู่หลายที่นะครับ สิ่งที่เป็นมุมมองด้าน Marketing ที่ทำให้คนมากมายมหาศาลนั่นก็ืคือเขาใช้วิธีการ Segmentation & Target Market by Nationallity กล่าวคือเขาไม่ได้เข้าไปชิงตลาดเดียวกับพวกการโอนตัวของ Western Union หรือ ธนาคารทั่วไปหรอก วิธีการของเขาก็คือ Focus ไปยังลูกค้าที่จะใช้เงินนั้นๆเพียงอย่างเดียว เช่น การโอนไปอินโด มาเลย์ ฟิลิปปินส์

เพราฉะนั้นธุรกิจในลักษณะนี้มันก็สามารถจับลูกค้าได้เป็นรายเชื้อชาติ เน้นตลาดเดียว เปิด Channel จำกัด แต่ให้มัน Effective ในการดำเนินการทางธุรกิจ แต่ต้องมั่นใจนะครับว่าจะลงไปในตลาดใหญ่พอควรได้ ที่สิงคโปร์นั้นตลาดคนฟิลิิปปินส์ อินโด มีอยู่จำนวนมากพอที่ทำให้เกิดการโอนเงินในลักษณะนี้ แต่ถ้าจะทำแบบตลาดคนไทยในต่างประเทศผมยังขอคิดก่อนว่ามันคุ้มที่จะทำหรือเปล่า

Remittances account for large amounts of Central American GDP annually. Much has been said about the state of the US economy, and for good reason. Yet, often, the further down the line of production, average Americans and immigrants voices are hardly heard. With the loss of jobs and the fluctuations in the value of the dollar, some countries are hit harder than others. With $64 billion already sent to Central America and the Caribbean ($4 billion less than last year, an average 7 percent decline), more than combined aid and foreign investments combined, it will be difficult to tell today how these declines will impact everyday life.

In Guatemala, remittances are down by 10 percent.

Remittances from January through May totaled $1.59 billion, Banco de Guatemala said on its Web site, down from $1.76 billion in the first five months of 2008.

Last month Guatemalans abroad sent home $332.6 million, about $7.08 million less than in April, according to the central bank.

The amount of remittances in May was down 16.4 percent compared to the same month in 2008, when $397.98 million flowed into the country.

Authorities attribute the fall-off in remittances to the world economic crisis, above all in the United States, where 1.2 million Guatemalans have settled, 60 percent of them without the proper required immigration papers.

In El Salvador, the Central Reserve Bank, which tracks remittances on a monthly-basis, also reported a 10 percent decline.

Las remesas familiares acumuladas en los cinco primeros meses de 2009, ascendieron a US$1.444.0 millones, mostrando una reducción anual del 10% con relación al mismo período del año anterior…

La disminución en las remesas es equivalente a US$160.0 millones. Solamente durante mayo, el monto de las remesas familiares recibidas fue de US$308.2 millones y decreciendo en 12.8% anual. Por segundo mes consecutivo se ha observado una reducción a tasa de dos dígitos.

…el principal factor en este resultado, es la situación económica que viven los Estados Unidos de América, país donde reside la mayor parte de los salvadoreños que han emigrado. Los datos más recientes sobre esa economía muestran una profundización del desempleo hispano, el cual alcanzó una tasa de 12.7% en el mes de abril pasado, tasa que no se observaba desde 1983.



Family remittances earned in the first five months of 2009 amounted to U.S. $ 1.4 billion, showing an annual reduction of 10% over the same period last year…

The decline in remittances is equivalent to U.S. $ 160.0 million. Only in May, the amount of remittances received was U.S. $ 308.2 million and decreased in 12.8% a year. For the second consecutive month there has been a reduction to two-digit rate.

…the main factor in this result, the economic situation experienced by the United States of America, a country where the majority of Salvadorans who have emigrated. The most recent data on the economy show a deepening unemployment Hispanic which reached a rate of 12.7% in last April, a rate not seen since 1983.

While Honduras ended a bitter 2008 up 7.3 percent in remittances – a surplus of $2.7 million – in 2009, they have fallen 3.6 percent. Nicaragua, which just got its aid reduced because of election irregularities which jeopardized its standing with the US’s Millennium Challenge, has also seen their remittances decline by 8 percent.

Elsewhere, Mexico, the United States’ largest recipient of remittance money, is 8.7 percent behind schedule. In South America, Colombia, the only country on the continent with a sizable remittance, has declined by 3.6 percent.

One constant in every report, however, is the precarious nature of the US economy. The Hispanic unemployment average, as mentioned above, is over 12 percent, about three percent higher than the current national average of 8.9 percent. Jobs are hard to come by (ask me) and with declining prospects, the increase in right-wing violence and the likely calls for jobs for (white) Americans looming, the decreased remittances will force the governments of Central America to refashion, if they can (El Salvador here has the best shot, if only for the time being), their economies to not be so dependent on the aid of workers in the US – as it seems to be only the beginning.

Instead of questioning the possibility,  what if we were to come up with a viable method of monetizing on the remittances inflows ?

How to channel the remittances and their regularity trough the formal financial sector in a way that would benefit both participating Financial Institutions (F.I) and the receivers on the local level?

Daily living expenses can take up 75 to 80% of remittances in some areas regardless of government assistance level. Let’s not forget that according to official reports, this money is a more reliable source of finance than private sector investment or even official development aid. F.I in Sub-Saharan Africa (SSA) are opening more branches than ever in the past and most of those are primarily dedicated to transferring funds. But so far, neither the senders nor the receivers have been offered  a financial product that could capitalize on this massive flow of cash and benefit both.

That’s what my focus is going to be for a while and any tips or/and (free) contributions are welcome.

From a BusinessMirror.com news source: (Click Here)

PAG-IBIG Fund members working in 25 countries where iRemit Inc. operates will soon be able to pay their monthly membership contribution and housing loan amortization at any iRemit branches. The new and improved system will be implemented on June 1. About a tenth of the Philippine population of around 90 million work abroad, but only 373,396 of them are Pag-IBIG members.

Mabini Express is a remittance agency that caters to filipinos in Canada, US and all over the world who wants to send money back home to their loved ones. Mabini Express, aptly named after one of our nation’s heros, caters to the unsung heros of today, the overseas workers. Dedicated to quality service and personal touch, we have agents all over Canada to help you with your needs.

To celebrate the grand opening of its Sheppard Centre Mall branch at North York in Ontario, it is holding a luncheon and customer event from 11:00 AM to 5:00 PM on Saturday, May 30, 2009. The new branch’s address is 4841 Yonge St. Unit 133 Sheppard Centre Mall North York ON M2N  5X2. Everyone is invited to attend.

This is just about the stupidest commercial I’ve seen to date. Not only does it send the message that Filipino Commercial makers can’t think of other BETTER ways to push their message through, they also tell the whole damn country that they can’t SPELL worth SHiT! You know how LBC is REALLY SPELLED. It spells…I-D-I-O-T-S. Now what does that mean? It means you shouldn’t give you money to L-B-C, because L-B-C=I-D-I-O-T-S and no one should do business with I-D-I-O-T-S.

I can’t believe Edu Manzano went with that whole mess. I’m veering between thinking, yes, it is…um…certainly different, but it is also, without a doubt…lacking in intelligence. Not to mention, it has a bad influence on children. What if some child actually DID spell remittance as LBC? Who’s to blame?

Teacher: Little Tony spell remittance?

Little Tony: Remittance (bright piping voice) Remittance is spelled…Capital L-B-C.

Teacher: (gasp of horror) Tony that is wrong.

Little Tony: (Bawling) Waaaa…but Edu Manzano said “remittance” IS spelled LBC. Huhuhuhu…

Teacher: Edu Manzano? He’s a good, upstanding man. Where would you get such an idea?

Innocent Bystander: Umm…Did anyone else see that LBC commercial last night? The one that tells Nationwide (the WHOLE COUNTRY, influencing millions of children) that “remittance” is spelled LBC?

From Whole Class: (Gasp) Really?…

…continue on from there…

The first time I got to see this TVC, I just knew it was headed for trouble. Yes, it’s cute, it’s funny, especially with Edu Manzano acting as if he was in a real TV show (he’s quite a great actor, dontchathinkso?), but honestly there are just some things that you can’t joke about in this Godforsaken country.

Yes, yes, Pinoys are known to whither the storm or what have you, but one should always remember not to put rub salt into our wounds. I’m not advocating a state of denial, but given that education is a very touchy subject, perhaps there are more proactive and constructive ways for companies (such as LBC) to make use of some social advocay perspective to help improve the bottomline. Kudos though to LBC for pulling the ads off the air before all hell broke loose. Let’s just assume they did it for the sole purpose of doing what is right. Hehehe!