78 Total participants
Session I – Remittance markets’ resilience through enabling environments
Moderator and discussant: Harish Natarajan, Lead Financial Sector Specialist, Finance, Competitiveness & Innovation, World Bank
Track III focused on the key policy constraints identified during the crisis that impede competition and innovation in the remittance market. The dialogue explored potential interventions needed, as well as adapted policy and regulatory measures that can contribute to risk mitigation and improve the security of the remittance ecosystem for remittance families.
|Updated World Bank data from 2020
|On the sending side
|On the receiving end
|o Incremental decline of cash-based services, which have become more expensive to manage, and of bank account transfers availability.
o Boost in mobile money services, paired with a significant decline in costs in 2020 (Q2 and Q3, less in Q4)
|o Drop in service availability came with a lag of one quarter, given that the pandemic hit net-sending countries first. As a result, the only affected services in Q2 2020 were some bank account services.
o Mobile money services on the receiving end increased by 20 per cent on a year-over-year basis in Q3 and 63 per cent in Q4, and the cost went down by 18 per cent and 19 per cent in the last two quarters.
“We all share the ambition to make payments more efficient – often this means making them digital. But we must not leave the vulnerable segments of the population behind.” Thomas Lammer, CPMI
“Financial inclusion starts with payments. Payments are a kind of gateway to broader financial services, and the core of payments (retail payments) is the transactional account that can be used for a variety of payment needs.” Tom Neylan, FATF
Going forward: challenges and opportunities
“The pandemic has accelerated a change that is probably for the better.” Harish Natarajan, World Bank
“Some of the issues are new but the crisis is far from over, and more support is required in countries where people count on remittances as a lifeline.” Thomas Lammer, CPMI
Best practices and reports
 To complement the Global Average and Global Weighted Averages described above, the World Bank introduced the SmaRT indicator in Q2 2016, which aims to reflect the cost that a savvy consumer with access to sufficiently complete information could pay to transfer remittances in each corridor.