Remittances are a worldwide issue. All too often people associate “Remittances” with Africa or Asia. But remittances are a feature in any country where economic conditions are poor and where there are too many people for the jobs available. In these circumstances people migrate in the hope of finding work and being able to send money home to help feed and clothe family members who have remained behind.
This short video from the World Bank highlights conditions in Moldova, the poorest country in Europe. Its economy relies on money sent home by the hundreds of thousands of Moldovans who work outside the country. In the current global economic environment, it is inevitable that remittances will fall. Although it is still too early to tell by exactly how much, it is clear that declining remittances could have a large impact on families trying to cope with the economic downturn.
Monday, 30 November 2009
Saturday, 28 November 2009
Payment Systems - Do you know how a cheque works?
Market research in the UK has confirmed that that consumer understanding of the oldest payment system, the cheque clearing process is still very low. To counter this, the UK’s Cheque and Credit Clearing Company (C&CCC) has launched an interactive online film that helps explain the different stages involved in clearing a cheque. It is educational, informative and very clearly presented.
Cheque clearing processes are basically universal, so even if you don’t live in the UK the principles covered are still valid. You can watch this online movie at: http://www.chequeandcredit.co.uk/files/candc/flash_files/candc_animationv6.swf
Cheque clearing processes are basically universal, so even if you don’t live in the UK the principles covered are still valid. You can watch this online movie at: http://www.chequeandcredit.co.uk/files/candc/flash_files/candc_animationv6.swf
Friday, 27 November 2009
Payment Systems in India – A Vision for the Future
Recently the Reserve Bank of India released a report entitled ‘Payment Systems in India - Vision 2009-12‘. In this the Indian central bank discusses initiatives it has taken and what it plans to do to improve security of cards, make ATMs more accessible to the public, make banking more accessible to the public, improve its efficiency, timings and reduce risks. It notes that the future is in mobile payments and offers its outlook on alternate methods to improve the Indian payments industry.
This succinct summary of the Reserve Bank of India’s proposal MEDIANAMA is a “must read”. Access it at RBI’s Vision For Mobile & E-payments, Major Projects | MediaNama
This succinct summary of the Reserve Bank of India’s proposal MEDIANAMA is a “must read”. Access it at RBI’s Vision For Mobile & E-payments, Major Projects | MediaNama
Thursday, 26 November 2009
The Cheque is More than a Payments Instrument
Stanley Epstein, Principal Associate, Citadel Advantage
So the venerable old cheque has been singled out and “tapped” for termination – in the UK at least. Of course, in the new world of electronic payments and instantaneous communications, the demise of the cheque was inevitable. A payment instrument devised in a simpler time, the cheque representing a negotiable claim on the bank account of the drawer, was a major innovation in its day. It represented a new way to make payments in a manner that avoided the actual transfer of cash or bullion. The humble cheque as a payment instrument spawned other major innovations such as the clearing and settlement processes that are major features of all electronic payment, clearing and settlement systems to this very day.
As a payment and a financial instrument, the cheque reigned supreme for over two centuries and spread across the face of the globe. But, as with all empires, the cheque’s star must eventually set. The cheque has become an anachronism in today’s high-tech, high-speed world. It is an expensive system to operate and worst of all its “flow” is all the wrong way.
In a technology driven, high-speed, risk averse world the way in which the cheque operates is a barrier to the smooth high-speed payments processing operation that puts all the right checks and balances in the right places and in the right sequence.
All other payment types flow from the payer to the payee (now that is a simple word for the receiver that today seems to have gone out of fashion). The opposing flow of the cheque from the recipient (payee) to the payer’s bank is just a hindrance to modern processing practices as well as a huge source of risk.
Of course the cheque is more than a payment instrument, though many people do not know this. The cheque served (and still does in many places) a multiplicity of financial roles, vital in day-to-day business activities.
Just consider four of these.
1. A means of commercial and consumer credit,
2. An access point to commercial bank lending,
3. A medium of exchange, and
4. A payment instrument.
In many countries, even today, the cheque still serves as a credit and loan instrument. Post dated cheques give buyers credit extended by a merchant or store, while the self-same cheques with their legal basis and their negotiability give that same merchant immediate access to discount facilities (i.e. the cash) at commercial banks.
During the six and a half month bankers strike in Ireland in 1970 the humble cheque served as a medium of exchange too, with very little default once the banks got back to operating again.
Until recently in most countries the only “payment” law in existence was that relating to the cheque. Cheque laws and banking laws run hand-in-glove. The legal corpus surrounding other types of payment instruments is, with a few exceptions, sketchy and in some cases nonexistent. Within the realms of the law the cheque or “Bill of Exchange”, which it really is, still has a lot of life left in it. Most countries created significant laws and legal principles based on the cheque/ bill of exchange.
The bill of exchange still remains the basic instrument of international trade and finance. While the UK may well abolish the use of the cheque for day-to-day payments purposes it is unlikely that the instrument will suffer an ignominious end. Trade practices and international conventions will ensure that the cheque/ bill of exchange will still be with us for a long time to come.
So the venerable old cheque has been singled out and “tapped” for termination – in the UK at least. Of course, in the new world of electronic payments and instantaneous communications, the demise of the cheque was inevitable. A payment instrument devised in a simpler time, the cheque representing a negotiable claim on the bank account of the drawer, was a major innovation in its day. It represented a new way to make payments in a manner that avoided the actual transfer of cash or bullion. The humble cheque as a payment instrument spawned other major innovations such as the clearing and settlement processes that are major features of all electronic payment, clearing and settlement systems to this very day.
As a payment and a financial instrument, the cheque reigned supreme for over two centuries and spread across the face of the globe. But, as with all empires, the cheque’s star must eventually set. The cheque has become an anachronism in today’s high-tech, high-speed world. It is an expensive system to operate and worst of all its “flow” is all the wrong way.
In a technology driven, high-speed, risk averse world the way in which the cheque operates is a barrier to the smooth high-speed payments processing operation that puts all the right checks and balances in the right places and in the right sequence.
All other payment types flow from the payer to the payee (now that is a simple word for the receiver that today seems to have gone out of fashion). The opposing flow of the cheque from the recipient (payee) to the payer’s bank is just a hindrance to modern processing practices as well as a huge source of risk.
Of course the cheque is more than a payment instrument, though many people do not know this. The cheque served (and still does in many places) a multiplicity of financial roles, vital in day-to-day business activities.
Just consider four of these.
1. A means of commercial and consumer credit,
2. An access point to commercial bank lending,
3. A medium of exchange, and
4. A payment instrument.
In many countries, even today, the cheque still serves as a credit and loan instrument. Post dated cheques give buyers credit extended by a merchant or store, while the self-same cheques with their legal basis and their negotiability give that same merchant immediate access to discount facilities (i.e. the cash) at commercial banks.
During the six and a half month bankers strike in Ireland in 1970 the humble cheque served as a medium of exchange too, with very little default once the banks got back to operating again.
Until recently in most countries the only “payment” law in existence was that relating to the cheque. Cheque laws and banking laws run hand-in-glove. The legal corpus surrounding other types of payment instruments is, with a few exceptions, sketchy and in some cases nonexistent. Within the realms of the law the cheque or “Bill of Exchange”, which it really is, still has a lot of life left in it. Most countries created significant laws and legal principles based on the cheque/ bill of exchange.
The bill of exchange still remains the basic instrument of international trade and finance. While the UK may well abolish the use of the cheque for day-to-day payments purposes it is unlikely that the instrument will suffer an ignominious end. Trade practices and international conventions will ensure that the cheque/ bill of exchange will still be with us for a long time to come.
Monday, 23 November 2009
Training Course - Risk Management - Focus on Fraud
Join us in Madrid, Spain on 22 & 23 February 2010 for our 2-day training course “RISK MANAGEMENT - FOCUS ON FRAUD.”
Fraud is on the increase. Recent studies have shown a surge in economic crimes. The statistics reveal that the three most common forms of crime are theft, accounting fraud and corruption.
Of these, fraud has shown a particularly sharp rise. The rise in fraud stems from a mixture of increased opportunities and growing incentives. Companies have been reducing the number of people employed to monitor workers at a time when employees are more tempted to break the rules because their living standards are eroding and their jobs are looking shakier. The proportion of frauds committed by middle managers has shown a particularly sharp rise, from 26% in 2007 to 42% today.
Just consider the following questions;
- Can your bank or organization cope with fraud?
- Can you identify a fraud in your working environment?
- Are you maximizing your staffs’ potential to reduce fraud and error in your systems?
- How aware are you or employees of fraud?
- Do they have a clear understanding of the role they play in detecting fraud?
- Do they understand you organization’s fraud policies and procedures?
The “Risk Management - Focus on Fraud” course in Madrid on 22 & 23 February 2010 is a 2-day intensive course on fraud and how it presents huge challenges for banks, requiring them to radically modify behavior and increase their vigilance in many of the traditional risks associated with banking activities.
Ensure that your staff are able to cope with the growing fraud threat.For more details including a fully descriptive course brochure e-mail us at courses@citadeladvantage.com today. Please indicate FRAUD-MADRID in the subject line.
Training Course - Migrant Worker Remittances - Issues & Opportunities
Join us in Johannesburg, South Africa on 25 & 26 January 2010 for our 2-day course “MIGRANT WORKER REMITTANCES - ISSUES & OPPORTUNITIES.”
Money sent home by migrants constitutes the second largest financial inflow into many developing countries, exceeding even international aid. Remittances contribute to economic growth and to the livelihoods of needy people worldwide. Moreover, remittance transfers can also promote access to financial services for the sender and recipient, thereby increasing financial and social inclusion.
Although African workers send home more than US$40 billion to the region each year, restrictive laws and costly fees hamper the power of remittances to lift people out of poverty, according to a recent report by the UN's rural poverty agency, the International Fund for Agricultural Development (IFAD).
Even if your organization already has a Remittance Program or Product, this course will be of immense value to you and your staff.
Remittances are not as simple as a monetary transfer from A to B. It is the fine details of the remittance processes and the subtle nuances of being a stranger in a foreign land or simply a receiver in a remote location in one’s own country that constitute the major problems for remitters and receivers.
Get to grips with these and other uniquely African problems faced in providing remittance services in this region.
Understand how new technologies - such as the mobile phone - and existing infrastructure - particularly post offices or small retail outlets - could vastly increase the reach of remittance services.
Learn about the unique problems being faced by both Remitters and Receivers – problems that banks and other financial institutions are uniquely placed to help solve.
Remittances represent a huge business opportunity for banks and other organizations to satisfy the needs of this huge and growing market.
Cement your position in the Remittance Market by attending “MIGRANT WORKER REMITTANCES - ISSUES & OPPORTUNITIES” in Johannesburg on 25 & 26 January 2010.
For full details including a Course Brochure e-mail us at courses@citadeladvantage.com Please state REMIT-JHB in the subject line.
Money sent home by migrants constitutes the second largest financial inflow into many developing countries, exceeding even international aid. Remittances contribute to economic growth and to the livelihoods of needy people worldwide. Moreover, remittance transfers can also promote access to financial services for the sender and recipient, thereby increasing financial and social inclusion.
Although African workers send home more than US$40 billion to the region each year, restrictive laws and costly fees hamper the power of remittances to lift people out of poverty, according to a recent report by the UN's rural poverty agency, the International Fund for Agricultural Development (IFAD).
Even if your organization already has a Remittance Program or Product, this course will be of immense value to you and your staff.
Remittances are not as simple as a monetary transfer from A to B. It is the fine details of the remittance processes and the subtle nuances of being a stranger in a foreign land or simply a receiver in a remote location in one’s own country that constitute the major problems for remitters and receivers.
Get to grips with these and other uniquely African problems faced in providing remittance services in this region.
Understand how new technologies - such as the mobile phone - and existing infrastructure - particularly post offices or small retail outlets - could vastly increase the reach of remittance services.
Learn about the unique problems being faced by both Remitters and Receivers – problems that banks and other financial institutions are uniquely placed to help solve.
Remittances represent a huge business opportunity for banks and other organizations to satisfy the needs of this huge and growing market.
Cement your position in the Remittance Market by attending “MIGRANT WORKER REMITTANCES - ISSUES & OPPORTUNITIES” in Johannesburg on 25 & 26 January 2010.
For full details including a Course Brochure e-mail us at courses@citadeladvantage.com Please state REMIT-JHB in the subject line.
Sunday, 22 November 2009
How to Fit a Password - Learn about the Most Popular Passwords on the Internet
A fascinating view of a total lack of security consciousness. You need to read this article in the Ecommerce Journal. Access it by clicking on the article title below.
How to fit a password, learn about the most popular passwords on the Internet Ecommerce Journal
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How to fit a password, learn about the most popular passwords on the Internet Ecommerce Journal
Posted using ShareThis
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