Cash Transfer Programming and Innovation Claire Durham Senior Officer, CTP Innovations & Joseph Oliveros Senior Officer, Project Management, IS Transformation Unit

Session Objectives  An awareness of Cash Transfer Programming  An understanding of how IT can support a National Society in implementing Cash Transfer Programming  Identify future IT opportunities and challenges to scaling up cash programming

What is Cash Transfer programming? What is CTP?

What is cash transfer programming? ‘Cash transfer programming is one form of humanitarian response, which can be used to address basic needs and/or protect, establish or re-establish livelihoods’ (RC/RC Guidelines for CTP)

Let’s compare cash with goods

Common reactions to CTP  Not spent appropriately to meet needs  Misuse  Fraud  Theft or violence  Insecure & risky  Slow  Won’t reach the most vulnerable  Difficult to implement  Risk of inflation  Risk of corruption  Harder to target people  No functioning markets  Trader collusion & price fixing  Gender issues & power relations  Data protection / Know Your Customer (KYC)  Donors won’t support  Difficult immediately post-disaster

Common reactions to CTP  Not spent appropriately to meet needs  Misuse  Fraud  Theft or violence  Insecure & risky  Slow  Won’t reach the most vulnerable  Difficult to implement  Risk of inflation  Risk of corruption  Harder to target people  No functioning markets  Trader collusion & price fixing  Gender issues & power relations  Data protection / Know Your Customer (KYC)  Donors won’t support  Difficult immediately post-disaster

Why increased use of cash transfers?  Dignity  Flexibility and choice  Power transfer  Cost efficiency for agencies and participants  Large impact and link with recovery  Support or revitalise local trade and economic recovery  Preferred by affected communities  Supports peoples’ own pathways to recovery and increased resilience

Delivery Mechanism Instruments Direct Cash  Cash in envelops Using Financial Service providers  Banks  Store Value cards  Mobile Money  Remittance companies Paper/Physical Vouchers  Paper Voucher  Tokens/ Smart cards  Scratch cards Electronic Vouchers  Smart Cards  Mobile phones  Biometrics

Functions & Roles: Programmes & IT

Functions & Roles: IT  DATA PROTECTION  INFORMATION SECURITY  THE RIGHTS OF THE BENEFICIARIES  UNDERSTANDING RISKS

Jordan Population Movement ( ) CTP programme (unconditional) started in 2012 and still running. 7,000 families reached (approximately 35,000 individuals) in Amman. Average of 140 JoD (around 200 CHF) per family per month, 54% used for rent, 30% for food and 16% for other needs. 46% Female head of households. 86% of our beneficiaries’ living condition has been improved. Methodology used to withdraw the money are IRIS and ATM card. Technologies used in IFRC/JRCS (SQL Database, MS Access Database, ODK).

How it is done? Request Beneficiaries' list data Send Beneficiaries' list data Request to create bank accounts Informing us once the accounts are created Request to load payment SMS

Vietnam Typhoons Wutip & Nari (October 2013) To meet immediate needs 6,708 families (33,540 persons) Within 3 months Average 65 CHF per family Cash in envelopes Reaching affected population within 4 weeks compared to 8 weeks in 2011 Mekong floods Possible due to CTP preparedness programme

Nepal Earthquake 2015 Unconditional cash grants To meet immediate needs 40,000 families (200,000 persons) Within 3 months Average 140 CHF per family Cash in envelopes and cheques

Philippines Typhoon Haiyan (December 2013) To meet immediate needs 90,000 families (450,000 persons) Within 3 months by the RCRC Movement Average 43 CHF per family Local remittance company

Philippines Typhoon Haiyan (December 2013) This remains to date the largest and fastest CTP operation implemented by the RCRC Movement.

Innovation and practical uses of technology

Key Opportunities  Making cash central to emergency response planning  Creating a “predicable cash based delivery model”  Expanding digital payment systems increases the potential to reach people quickly  Scaling CTP from the current 6% of humanitarian aid  Also an opportunity for broader reform of the humanitarian system  Bold leadership and commitment:  Strategic priorities; Objectives; Work plans.  Engagement with new partners – internal & external

Key Challenges  Cross-departmental and cross-divisional  Re-alignment of internal legacy systems  Defining our needs and requirements for last mile delivery systems (registration, demand, distribution)  Evaluating last mile systems  Operationalising developing/mature systems  Integration – interoperability of systems  Data protection - storage and transfer  Local – Global  Game changers – P-2-P giving, social safety nets

So what do we do about it?

Comments & Questions?

Thank you © International Federation of Red Cross and Red Crescent Societies, Geneva, Any part of this presentation may be cited, copied, translated into other languages or adapted to meet local needs without prior permission from the International Federation of Red Cross and Red Crescent Societies, provided that the source is clearly stated. Requests for commercial reproduction should be directed to the IFRC Secretariat at All photos used in this presentation are copyright of the IFRC unless otherwise indicated.

Annex  Philippines CTP video herehere