Using our well-proven Payment Highway methodology, we began by creating a Business Level Model for the design of formal remittance corridors. This considers the strategy for establishing a remittance network, the roles of all stakeholders, its legal basis, financial footing and appropriate risk management policies. The Model covers the creation of remittance schemes in sending and receiving countries, and the international linkages necessary to form the corridors. The design takes into account the fact that many migrants are unbanked, and reluctant or unable to use existing channels. It also addresses the conflicting priorities of the stringent regulatory environment and anti-money laundering/anti-terrorism measures versus the need for a low cost, low overhead remittance service for which the clients will often be using cash and may not hold traditionally acceptable forms of identification. This dichotomy has led to reluctance by many banks to enter the remittance business, as they consider the resulting exposure to reputational risk unacceptable.

With the experience and insight gained through various engagements, we have taken the model further, to create a design for a Migrant Remittance Payment Highway, a complete service suitable for banks and second/third tier institutions, suitable for any remittance corridor. Further details are available upon request.

We have been working closely with the UK Government’s Department for International Development (DFID) on remittance projects; our consultants were key members of their Remittance Country Partnership teams which undertook scoping missions to countries such as Bangladesh, Nigeria and Ghana. This experience has led to further client engagements related to migrant remittances, including a project for the World Bank to examine the topic, with particular emphasis on the regulatory environment and its impact on remittances, in South Africa and neighbouring states. We have also been engaged by the UK Remittance Task Force (a group of banks, money transfer operators and other interested groups) to study and size the flow of remittances from the UK, and assist them in developing strategy and identifying business opportunities.

Our work for DFID in Bangladesh has led to the inception of a major project, the ‘Remittance and Payments Partnership’, in which we have played a central role. This three year project uses remittances as a catalyst for national payments modernisation, including creation of a national payments strategy, and strengthening of the Central Bank and wider banking community in the payments arena.