Despite the impact of the 2008-2009 global downturn, remittances as a source of liquidity will likely prove to be resilient, and could potentially play a role in restoring or increasing prosperity across regions. Whereas the sharp contraction of credit in the global banking sector has directly and instantaneously ravaged FDI alongside private debt and equity flows, remittances to the developing world are slowing down more gradually and indirectly as a result of declining personal consumption, lay-offs, and lower salaries impacting the real economy. This adds the resilience of remittances, where migrant workers will continue sending money to relatives in their countries of origin during uncertain economic times, albeit at less regular intervals and/or in smaller amounts.

Mobile Money Transfer is positioned to exercise considerable transformational effect on developing economies, a crucial factor for wider world economic growth. Mobile Money also enables financial services and money transfers - often initiated by urban and international immigrants - to reach poor people in rural areas. Mobile remittance services will form the first commercially viable and sustainable opportunity to reach the unbanked with low cost, no-frills financial services.

Major operators with international and inter-regional footprints such as Vodafone and Orascom Telecom have announced their intention to deploy mobile remittance, which they hope will act as a catalyst for the wider adoption of mWallet-enabled transaction services. Most importantly, mobile remittance presents a way for these inter-regional players to further maximise revenue potential through a greater proportion of their respective footprints, leveraging their assets in Europe and the Middle East in synergy with those in South Asia, Africa and the Asia Pacific! .

Reading this exclusive management report will tell you the following:
• What different forms of mobile remittance are available and expected to appear in the future?
• Why is mobile potentially so important to banking and financial services, as well as economic development?
• When will mobile remittance become a truly global mass market proposition?
• How successful can these service propositions become?

Table of Contents

Executive Summary
E1. Mobile Remittance and m-transaction - Unexpected Adoption and Benefits for Developing Economies
E2. The short term impact of the global economic downturn
E3. Remittances to support new long term banking direction
E4. Providing Favourable Regulatory Frameworks

1. Introduction
1.1 What Exactly Is Mobile Remittance?
1.2. Focus of the Report

2. The Remittance Market
2.1 The Critical Macroeconomic Role of Remittances
            Chart 1. Remittances as a Share of National GDP in 2006
2.2 Behind Global Growth Trends in Remittance Flows
            2.2.1 Growth in Global Migration
                        Chart 2. Growth in Global Migrant Stocks, 1960-2050
                        Chart 3. Average Annual Net Migrants to More Developed Regions
            2.2.2 Remittance Flow Growth
                        Chart 4. Growth of Global Remittance Flows 1990-2007
 &nb! sp;  ;                     Chart 5. Financial Flows into Developing Economies 1990-2007
            2.2.3 Analysis of Flows into Recipient Countries
                        Table 1. Top 30 Formal Remittance Receiving Countries 2007
                        Table 2. Top 30 Formal Remitter Countries 2007
2.3 Migration Patterns and Remittance Corridors
            Figure 1. Major Bilateral Remittance Corridors and Estimated Flows, 2007
            2.3.1 Growth of the UK-Poland Remittance Corridor
            2.3.2 Remittance Corridors and Operator Market Strategy
2.4 Remittances as a stable source of external finance
2.5 The multiplying effect of remittances: consumption, savings and investment
            2.5.1 Enabling additive and transformational approaches to banking

3. Drivers towards Implementation
3.1 Financial Infrastructure
            Chart 6. Market Share of P2P Money Transfers 2006
            3.1.1 Inadequate Servicing of Remittance by Existing Mechanisms
                        Table 3. Global and UK Remittance Transaction Fees Comparison
            3.1.2 Poor financial infrastructure in developing economies
            3.1.3 Participation in the formal vs. informal economy
3.2 Mobile Infrastructure
            3.2.1 Global Mobile Penetration
              ! ; & nbsp;        Chart 7. Global Telecoms Subscriber Growth, 1982-2013
                        Chart 8. African Mobile Subscriber Growth 1999-2013
                        Chart 9. Asian Mobile Subscriber Growth 1999-2013
            3.2.2 Technological Developments
                        3.2.2.1 The Development of M-transaction
                        3.2.2.2 Convergence
                        3.2.2.3 Convergence Embraces Mobile Transaction
                        3.2.2.2 Low-cost handsets
                        3.2.2.3 Mobile Subscriber Growth in Emerging Markets
                                    Chart 10. Top Ten Countries for Net Additional Subscribers 2007
                        3.2.2.4 SMS Banking
                                    Figure 2. Basic SMS banking transaction flow
                                    3.2.2.4.1 Prime Disadvantages of SMS banking
                        3.2.2.5 STK-enabled Mobile Transaction
                        3.2.2.6 IVR Banking Service Delivery
                        3.2.2.7 USSD/USSD2
                        3.2.2.8 WAP Service Delivery
                        3.2.2.9 Service Delivery via J2ME Apps
                        3.2.2.10 mWallet

4. Mobile Remittance: Operator-Side Types of Implementation
4.1 Business Models
            Figure 4. Mobile Remittance Value Chain
            4.1.1 Mobile Operator as Bearer Channel Provider
                        Figure 5. MNO as Bearer-only Business Model
            4.1.2 Mobile Operator as Bearer and Banking Application Host
                        Figure 6. MNO Banking Application Host Business Model
            4.1.3 Integrating Banks/Financial Institutions into Mobile Operator Hosted Platforms
              &! nbsp;&nb sp;        Figure 7. Business Model for an MNO as a Banking Hub
                        Figure 8. Topology of the MNO Banking Hub Model
            4.1.4 MNO Adoption of Financial Institution Status
                        Figure 9. Financially-licensed MNO model with MNO positioned as beneficiary
                        Figure 9. Financially-licensed MNO model with MNO positioned as remitter
            4.1.5 Summary of MNO Business Model Options
4.2. Business Model Options for Financial Institutions
4.3 Service Models
            4.3.1 mWallet to mWallet
                        Scenario 1. mWallet-to-mWallet transaction
            4.3.2. mWallet to Cash
                        Scenario 2. mWallet-to-Cash transaction
            4.3.3 Cash to mWallet
                        Scenario 3. Cash-to-mWallet transaction

5. Financial and Mobile Industry Convergence: Control Points and Requirements in Implementation
5.1 Regulatory
            5.1.1 Addressing Boundaries between financial and telecoms regulatory frameworks
            5.1.2. Aligning Developing Economy Mobile Remittance Models with KYC and AML/CFT Regulations
            5.1.3. Developing Economy Mobile Remittance Models and the Application of Prudential Regulation
            5.1.3. Developing Economy Mobile Remittance Models and Access to Clearing Systems
            5.1.4 Formalising Remittance Flows
5.2. Transaction Processing

6. Mobile Operator and Financial Institution Partnerships: Mobile Remittance Case Studies and Emerging Developments
6.1. Smart Telecom mWallet Services, Philippines
            Chart 11. Smart Money users as Proportion of Subs
            6.1.1 Smart Padala Remittance: 4 years of success
                        Tables 4a and 4b. Smart Padala Remittance Partners and Locations Overseas
6.2. Globe Telecom, Philippines
            6.2.1 GXI - Globe's M-Commerce Subsidiary
6.3. Vodafone's Strategies
            6.3.1 Safaricom and M-PESA: m-transaction as a precursor to wider cross-border mobile remittance
  &nbs! p;                      6.3.1.1 M-PESA Adoption Curve
                                    Chart 12. M-PESA Adoption, April 2007-March2008
                        6.3.1.2 M-PESA Adoption Drivers
                        6.3.1.4 The M-PESA Service Model
                        6.3.1.5 M-PESA Expansion and International Implementation by Vodafone
                                    Figure 10. Advertisement for M-PESA
                        6.3.1.6 Delays and Barriers for the International Implementation of M-PESA
          &n! bsp; 6.3.2 Vodafone and Citigroup/Citibank global agreement
6.5. Bharti Airtel and Western Union Pilot Project
6.6. The GSM Association Mobile Money Transfer (MMT) Initiative
            6.6.1 MMT: Attempt at creating a Multilateral Remittance Framework
                        Table 5. Options for the Implementation of Multilateral MMT Hub Platforms
            6.6.2 Partnerships
                        6.6.2.1 GSMA-Western Union Partnership
                        6.6.2.2 GSMA-MasterCard Partnership
                        6.6.2.3 GSMA-Western Union-Smart
                        6.6.2.4 GSMA-Western Union-RBS Group-Belgacom ICS HomeSend platform
          &! nbsp;&nb sp;            6.6.2.5 GSMA-Visa
                        6.6.2.6 Western Union-Orascom mobile money transfer pilot
6.7 NatWest-PKO Bank Polski
6.8 Visa-US Bank mobile money transfer pilot
6.9 Deutsche Bank mobile payments service
6.10 !dea Cellular, Tata Communications, HSBC India & Etisalat UAE joint pilot project

7. Remittance: Vendor Profiles
7.1 Utiba
7.2 aKos Technology Corporation
7.3 Cointel
7.4 Monitise
7.5 GFG Group
7.6 Sybase
7.7 Paybox
7.8 eServGlobal
7.9 mTranZact
7.10 Overview of M-Commerce Vendors in Remittance
            7.10.1 Licensing Vendor Business Models
            7.10.2 ASP Vendor Business Models
            7.10.3 Suitability

8. Conclusion
8.1 A necessity for economic development equals high consequential take-up
8.2 The need for regulatory harmonisation and accommodation
8.3. Standardisation as an achievable goal
8.4. Which form of mobile remittance will emerge as the most common?
8.5. The Danger of the Two Tier Mobile Economy
8.6. Forecasts: Deriving growth from global recovery beyond 2010
            Chart 13. Global remittance growth forecast
            Chart 14. Comparison of Forecasts for Remittance Channels By Value
            Chart 15. Forecasts for Remittance Channel Volume
            Table 6. Operator revenues generated from transaction costs
            8.6.1. Greatest Impact: Asia and Africa
            Chart 16. Comparative Mobile Remittance Forecast for Recipient Cou! ntries            Table 7. Forecast for Mobile Remittance Transaction Volumes per Country (US$million)
            8.6.1. Minimal Impact in Latin America and Eastern Europe

Companies & Organistations listed in report

aKos Technology

Aktel

Alliance & Leicester

AT&T

Belgacom ICS

Bharti Airtel

Cable & Wireless

Citigroup

ClearTalk Wireless

COAI

Cointel

CSL

Cybertalk Limited

Dahaabshil

Deloitte

Deutsche Bank

DFID

Dialog

Digicel

Du

Enitel

eServGlobal

Etisalat

EU

Financial Services Authority

Fundamo

GFG Group

Globe Telecom

Global Peso Express

Grameenphone

GXI

HSBC

Hutchison 3G

ICSL Nigeria

!dea Cellular

IMF

Indosat

Inter-American Development Bank

Lari Exchange

Lebara Mobile

LG Electronics

Life

Link

Lycatel

Luup

MasterCard

Maxis

MiPay

Mobilink

MoneyGram

Monitise

Motorola

MTC Bahrain

MTN

mTranZact

Nairobi Stock Exchange

NatWest

Nokia

Orange

Orascom Telecom

Paybox

Pera Padala

Pinoy Express

PKO Bank Polski

Polkomtel

Royal Bank of Scotland

Safaricom

SingTel

Smart Communications

Softbank

Sony-Ericsson

Swisscom

Sybase

Tata Communications

Telefonica

Telenor

Tesco Mobile

TIM

TMN

Touch Mobile

Travelex

Turkceli

Ulster Bank

UNCTAD

United Nations

US Bank

Utiba

Vigo

VimpelCom

Virgin Mobile

Visa

Vodacom

Vodafone

Western Union

World Bank

Zantel