COAS Seguimiento SBP

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INTERNATIONAL REMITTANCES PROJECT
19th May 2005
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INTRODUCTION
Main 10 Immigration Groups INE data as at
December 2004 (1.977.291)
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INTRODUCTION
Immigration INE data as of Dec 04 (aprox
1.500.000)
Countries included Non EC Member States, Africa,
Latin America and Asia
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INTRODUCTION
Immigration a Business Opportunity...

• Number of foreigners with residence card in 2004
  1.977.291 (20,05 more than in 2003), which
  represents a 5 of the Spanish total population.
• The immigrant population percentage on a working
  age is 94,4.
• Three over four immigrants (74,1) has a job.
• In 2.015, immigration will represent a 10 of the
  Spanish population (source INE).
• 4.000 million euros transferred in 2004
• 80 through private remittance companies
• 20 through Banks and Savings Banks
• TARGET invert this ratio

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INTRODUCTION
WHY a Project for Savings Banks?

• Consolidate the advantage that Savings Banks have
  over Banks.
• Cooperative and Sectorial Project
• Share costs and obtain economies of scale.
• Go beyond the remittances business marketing
  campaigns, publicity, integration, social
  service...
• Cooperation in Cooperation Model.
• Universal and Banking Model aspects to take into
  cosideration
• Business
• Invert the ratio 80-20.
• Who is the owner of the client? or who is the
  financial prescriptor?
• Regulation Bank of Spain stimulates Banks and
  Savings Banks to enter this financial activity
  the reasons security, stability, reliability and
  good customer service.
• Social aspects WSBI Savings Banks commitment to
  delivering fair value remittances.
• Agreements with Remittance Companies
  exceptionally.

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INTRODUCTION
Remittances a need...

• Remittances commercial hook
• Remittances conditio sine qua non.
• Remittances commodity.
• The remittances business will stabilize once the
  immigrant population consolidates.
• Business beyond remittances is based in
  attracting new customers and sales of different
  products (loans, mortgages, deposits....)
• Loyal customers, with low non-performing ratio.
• Publicity mouth-to-mouth.
• Cooperative action Individual action
• Critical volume of Savings Banks and transactions
• Renewal of customers base.
• Sectorial actions.

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MODEL
Main Targets

• 33 entities adhered to the Project.
• Payment platform working as from December 1st
  2004.
• Project launched by COAS (Comisión de
  Organización, Automación y Servicios),
  cooperation organism among Savings Banks.
• Model
• Common payment platform in Ceca and for those
  countries not covered by Ceca, agreement with la
  Caixa for the use of its correspondents.
• Banking model (Swift MT-103).
• Universal coverage.

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MODEL
Main Targets

• Provide Savings Banks with a remittances service
  with the following advantages
• Low costs
• Competitive.
• More than 16 countries in less than 1 year.
• Safe system.
• Transparency in costs.

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MODEL
Model approved by the Promoter Committee of
Savings Banks (24th March 2004)

• Common Platform in Ceca

• Different Agreements
• Ceca la Caixa.
• Ceca Correspondents in destination.
• Ceca Savings Banks.
• Multientity Application.
• Call Center in origin and destination.
• Swift and Internet files.
• Coverage initially 16 countries (more than 20
  partner Banks).

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MODEL

• Services included in Ceca
• All necessary developments and testings of the
  Multientity Application.
• Technical and Operative Support.
• Coordination with the technical department of
  each Savings Bank.
• Channeling and sending of all payment orders.
• Call Center.

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DESCRIPTION OF THE MODEL
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DESCRIPTION OF THE MODEL

• The payment order is initiated in the Savings
  Bank branch. The immigrant client deposits a sum
  of money and gives all beneficiary details
  requested. There is no need to have an account
  opened.
•  
• The payment order is sent to CECA through the
  multientity payment application.
•  
• The Exchange and Settlement Center in CECA (CIL)
  sends the payment order via Swift to the
  correspondent Bank.
•  
• CECA sends all payment orders details to its Call
  Center in Spain.
•  
• The local call center in Spain receives from the
  call center in destination a daily file with the
  status of all payment orders. The local call in
  Spain center inputs this data into the system.
•  
• The correspondent bank sends to CECA, on a daily
  basis, information about the exchange rate of the
  local currency that will be applied the following
  day (only in case the payment is in local
  currency). Ceca inputs this information into the
  application so the Savings Bank branch can pass
  this information over to the applicant (immigrant
  client), providing the exact amount the
  beneficiary will receive.

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COSTS FOR SAVINGS BANKS
Global Costs

• COSTS TO DISTRIBUTE BETWEEN ALL SAVINGS BANKS
• Initial costs.
• Project Management costs.
• Fixed annual operating costs.
• VARIABLE COSTS PER TRANSACTION
• Correspondent Banks fee.
• Swift fee.
• Call Centers fee (in origin).

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SAVINGS BANKS ADHERED TO THE PROJECT
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GROUPS OF COUNTRIES
COUNTRIES
ALREADY FUNCTIONING FROM DEC 1st 04
MARCH-JUNE 05
2005
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ACTIVITIES IN COOPERATION
Business Working Group

• Analysis of different products and services
  offered by providers specialized in immigration

• Ethnics Consultancy
• Repatriation and accident insurance products
• Phone Card Pins
• Remittances via the mobile phone
• Contact with local media
• Data base with different immigrants
  Organizations and Associations
• Commercial plans to reach the different immigrant
  groups
• Studies on immigration
• Market research with surveys

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ACTIVITIES IN COOPERATION
Publicity Working Group

• Common Brand for the Money Sending Service

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