1. © UPU 2009 – All rights reserved RemesAmericas 2010 Remittances for the future UPU postal payment services and financial inclusion Mexico, 6 and 7 May 2010 Serguei Nanba – Postal Financial Services Coordinator

2. © UPU 2009 – All rights reserved Summary UPU postal payment services UPU-IFAD project in West Africa UPU – Spain – Latin America Examples – Postal financial services

3. © UPU 2009 – All rights reserved The postal sector worldwide 657,000 post offices in 191 countries (500,000 in rural areas) 433 billion domestic letter-post items More than 5 million employees worldwide Around 80% of designated postal operators provide some sort of financial services In 2007: 1.15 billion money orders sent by Posts worldwide Our Strategy: Expand and develop the UPU worldwide electronic payment network (WEPN)

4. © UPU 2009 – All rights reserved International Financial System (IFS) ‏ : Benefits Secure, reliable and available to all 191 UPU members Money order services: domestic and international 4 products: cash, accounts, ordinary, urgent Adapted to needs of countries Track and trace Affordability Full control over service

5. © UPU 2009 – All rights reserved UPU-IFAD/FFR (Financial Facility for Remittances) Project in West Africa Target: migrants and recipients of migrant remittances in rural areas of six West African countries: Benin, Burkina Faso, Mali, Mauritania, Niger, and Senegal (43,530,126 inhabitants, of which 28,742,470 in rural areas) Main activities: Connection of around 300 rural post offices in 6 countries Set up of the communication infrastructure (call centres, direct connection) New technology, equipment, training Cash is available in rural post offices – transportation and management Associate remittances with other financial services (account- based services, microfinance)

6. © UPU 2009 – All rights reserved UPU-IFAD/FFR project in West Africa Benefits: Low-cost and quality service available in rural areas Reduction of competitors tariffs on various corridors Reinforcement of rural Posts for provision of universal service First step in financial inclusion process for rural poor Creation of a replicable model for remittances at worldwide level.

7. © UPU 2009 – All rights reserved

8. UPU – Spain – Latin America (definition) International cash-to-cash urgent money orders – 15 minutes service Same quality requirements for all operators Affordable price, with guaranteed quality and payment deadline Transparency: –The sender knows how much money the beneficiary will receive on arrival –Funds deposited in local currency of issuing country –Cash payment at destination at currency exchange rate prevailing at the time of admission

9. © UPU 2009 – All rights reserved UPU – Spain – Latin America (pilot project) 28 July 2008: launch of the new service made official during the UPU Congress August 2008: Uruguay–Spain service went into production October 2008: Chile–Spain service went into production From Spain to:ChileUruguay 87%38%

10. © UPU 2009 – All rights reserved Products/services offered at post offices in the region -Domestic and international postal money orders -Pension payments -Payment accounts -Debit and credit cards -Savings -Credit -Mutual funds -Insurances -Bill payments and municipality taxes (Permanent post office network, mobile post offices, Internet banking, ATM, etc.)

11. © UPU 2009 – All rights reserved UPU worldwide postal payment regulations Approval by governments of member countries Definitions Operational functions Ownership of PPS funds Prevention of money laundering, terrorist funding and financial crime Confidentiality Technological neutrality Quality of service Interoperability Track and trace, etc.

12. © UPU 2009 – All rights reserved Population: 180 million More than 40% of municipalities without banks in 2002 9+ million newly banked people from 2002 to 2009 5,973 branches/POs Strategy: first open in communities/municipalities without banks = Geographic financial inclusion First branches opened in unbanked areas Postal Bank: O banco que chega aonde nenhum outro chegou

13. © UPU 2009 – All rights reserved Brazilian Postal Bank Bills, invoices, tax payments 38.5% Loans 0.4% Withdrawals 17.2% Deposits 18.0% Other 2.4% Accounts 0.7% Social benefit payments 3.7% Account balance statements 19,2%

14. © UPU 2009 – All rights reserved Kazakhstan Post Bank Social payments (pensions, etc.) Bill payments Salary payments Lending Opening and management of accounts Other (currency exchange, credit cards, investment products) Money orders 7% 24% 10% 3,0% 1% 42% Total number of postal accounts > 3 million (20% of population) Cash transportation 3%

15. © UPU 2009 – All rights reserved Thank you for your attention! Serguei Nanba Coordinator Postal Financial Services Tel: + 41 31 350 32 16 Fax: + 41 31 350 31 10 E-mail: serguei.nanba@upu.int