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					             Universal Postal Union

 POC Sustainable Development Symposium

 The Role of Postal Services in Channeling
Remittances and Promoting Access to Finance

                23 April 2007
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                    1. Vision and Strategy for
                     Postal Payment Services

• Provide all citizens with access to efficient, reliable,
  secure and affordable electronic fund transfer
• Focus on migrants’ remittance corridors
• Create Worldwide electronic payment network:
  - Facilitate electronic connection between all UPU
    postal operators
  - Facilitate connectivity with other networks
  (Reference: Bucharest Congress Resolution)

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                2. Global development of remittances

Officially recorded remittances:
• To developing countries - the largest financial flows:
  - $ 199 bn in 2006 (estimation); > 107% than in2001
  - $ 96 bn in 2001

More than official development assistance

• Total flows, including those to high-income countries
  - $ 268 bn in 2006 (estimation ); > 83% than in2001
Latest World Bank Report

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                   3. Development of remittances - Inflow

Officially recorded remittances:
-   Latin America & Caribbean: $ 24 bn (2001) – $ 53 bn (2006)
-   East Asia & Pacific: $ 20 bn (2001) - $ 45 bn (2006)
-   Europe & Central Asia: $ 13 bn (2001) - $ 32 bn (2006)
-   Middle-East & North Africa: $ 15 bn (2001) - $ 25 bn (2006)
-   South Asia: $ 19 bn (2001) - $ 36 bn (2006)
-   Sub-Saharan Africa: $ 5 bn (2001) - $ 7 bn (2006) (underestimated)
-   High income OECD: $ 50 bn (2001) - $ 68 bn (2006)

Informal channels: > 50%

Latest World Bank Report (2006 – estimation)
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                   4. The postal network is relevant for
                          economic development

       Is infrastructure (roads, electricity, water, telecoms) good for growth?
       Yes … according to econometric study by the World Bank

       And Posts … Are they good for growth? YES … according to the same
       econometric study by the UPU which also includes Posts among
       infrastructure indicators

       Do Posts matter more or less than any other factor? Posts matter as
       much as any other infrastructure and factor influencing economic

       Why should this be so?
       650,000 post offices worldwide
       Unique financial service in rural zones

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            Nanba Serguei; 10.11.2006
       5. Posts are a must for access to financial services:
          (results from the UPU study on Sub-Saharan Africa)

                Most populated    Second most         Third           Rest of the
                     city        populated city   most populated   country (smaller
                                                       city         cities and rural

Share of           9.3%             2.5%             1.2%             82.5%
living in

Share of          10.1%             2.9%             1.9%             80.8%
located in
Posts/              0.24            0.42             0.72               6.45
private MO

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        6. Post office achievements in financial inclusion

Kazakhstan (3,200,000 postal accounts in five years):
Pension and salary payments, transfers, payments, savings

Tunisia (642,000 postal accounts, doubled in two years):
2,000,000 “minute domestic money orders” in 2006 (170 in 2002)
ICT access for customers in all post offices
University registration together with electronic postal payment (>300,000 in 2006)

South Africa
1.2 million postal accounts for people with no bank accounts opened in post offices in
the past two years - more than all the banks put together - and 2.3 million
households without an official address given an address in one year

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            7. Post office achievements in financial inclusion

Brazil (3,000,000 new postal accounts in three years):
Autazes (140 km from regional capital): three years after creation of Postal Bank and opening of
electronic money transfer service the number of commercial establishments doubled
Tartarugalzinho: “The postal bank goes where no other bank has gone”

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                   8. Contribution to the UN Millennium
                            Development Goals

     Goal 1 “Eradicate extreme poverty and hunger”:
•    Delivery and bill payment: with 650,000 post offices the worldwide Post reaches
     most areas and population
•    Banking: postal financial services provide access to financial services to people
     not served by commercial banks
•    Remittances: remittances are essential to rural development and post offices
     provide cheap local access

     Goal 8 “Develop a global partnership for development”:
•    Banking: large numbers of small savers can result in large deposits. With 300
     million small savings customers, post offices are the largest “micro-finance”
•    Payments: post offices can facilitate the growth of other sectors by offering
     payments as a product
•    Remittances: cheap remittance systems in rural areas can contribute to local
     economic growth

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                    9. UPU’s role

• Enable quality delivery of postal services and
  develop international cooperation
• Facilitate standardization and regulation, access to
  new technologies and technical cooperation
• Implement international regulations against money
  laundering and financing of terrorism
• Make a lasting contribution to the UN Millennium
  Development Goals aimed at eradicating poverty
• Offer concrete solutions to migrants’ needs

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              10. UPU’s Solution
• The UPU treaty has enabled exchanges of postal
  payment services since 1878
• UPU is a provider of an end-to-end IT solution for
  electronic postal payment services:
  the International Financial System (IFS)
• Plans for extension underway
• UPU Multilateral agreement
• UPU compensation and clearing system
• Interconnexion with other networks
UPU Statistics:
• Post Office Network worldwide: over 650 000:
• Number IMO:              14 m         4.3 bn USD
• Number MO (domestic): 1.14 bn         127 bn USD
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                        11. IFS overview

       A technical infrastructure with:

        – A network for secure electronic data interchange (EDI)
          between designated operators, based on UPU standards
        – A software solution to meet every need, from small to
          large operators, from very small to very large transaction
           • STEFI: the gateway, if the electronic network exists
           • IFS Light: a global Web application for direct
             processing via the Internet
           • IFS: a complete information and management system
        – A system for quality monitoring
           • QCS: a global website for accessing statistics and
             performance reports
        – Interconnections with other networks

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                                          IFS        IFS Light

13. IFS Network Production (30)           STEFI

       Algeria                    French Polynesia               Russia

       Armenia                    Ivory Coast                    Senegal

       Azerbaijan                 Kazakhstan                     South Korea

       Belarus                    Kenya
       Benin                      Madagascar

       Burkina Faso               Mali

       Cameroon                   Moldova

       China                      Morocco
       Djibouti                   New Caledonia

       Estonia                    Niger

       France                     Philippines
                                IFS          IFS Light
14. IFS Network -Testing (22)   STEFI

       Bhutan                                            Sri Lanka

       Burundi                                           South Afr

       Central African            Jordan                 Tajikistan

       Chad                       Maldives               U. A. E.

       Colombia                   Mongolia

       Congo, Republic            Nepal

       Ecuador                    Sao Tome and

       Egypt                      Saudi Arabia

                Thank you for your attention

                 Serguei Nanba, Coordinator
                  Postal Financial Services

             Tel: +41 31 350 32 16 / Fax: +41 31 350 31 10

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