!"#$%& (&)$*+,-&.

/
+ .0123 "4 05& 65$%$77$,&.
+,2 8",9+:
;+) 6"(0&(
<&-&)#&( =>>?
"
1ab|e of Contents

Lxecut|ve Summary .......................................................................................................... 3
key 1erms & Acronyms ..................................................................................................... 4


1. 8ackground ............................................................................................................... S-9
2. urpose ...................................................................................................................... 10
3. Methodo|ogy ......................................................................................................... 10-11
4. Understand|ng the |mportance of mob||e rem|ttances to deve|opment .................. 11-13
S. Success factors for mob||e rem|ttances |n the h|||pp|nes ....................................... 13-17
Sa. 8us|ness ...................................................................................................................... 13-14
Sb. Consumer ................................................................................................................... 14-1S
Sc. Government ................................................................................................................ 1S-17
6. App|y|ng the success factors to 1onga ......................................................................... 17
Sa. 8us|ness ...................................................................................................................... 17-19
Sb. Consumer ................................................................................................................... 19-21
Sc. Government ................................................................................................................ 21-23
7. Conc|us|on ............................................................................................................. 23-2S
7a. o||cy recommendat|ons ............................................................................................. 24-2S


keferences ................................................................................................................ 28-33
Append|ces ........................................................................................................................
Append|x A: N2-1onga rem|ttance corr|dor data ..................................................................... 26
Append|x 8: 1onga I|nanc|a| Stat|st|cs .................................................................................... 27
1ab|es ................................................................................................................................
1ab|e 1: Summary of success factors |n the h|||pp|nes............................................................ 17
1ab|e 2: Iees for send|ng N25200 from N2 to 1onga ................................................................ 28
1ab|e 3: roport|on of househo|ds report|ng each ma|n source of |ncome by |s|and d|v|s|on .... 29
1ab|e 4: nouseho|ds rece|v|ng rem|ttances (2006 census data) ................................................ 29
8oxes ................................................................................................................................. `````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````
8ox 1: h|||pp|nes ! qu|ck g|ance .............................................................................................. 7
8ox 2: Step by step gu|de to mob||e rem|ttances |n the h|||pp|nes ............................................ 8
8ox 3: 1onga ! qu|ck g|ance ...................................................................................................... 9
8ox 4: Supp|y of f|nanc|a| serv|ces |n 1onga............................................................................. 18
8ox S: SMS |nstruct|ons |n 1onga & the h|||pp|nes ................................................................. 20




#
Lxecut|ve Summary
1


8emlLLances from economlc mlgranLs are a growlng phenomenon ln developlng counLrles. Powever,
Lhere are a number of problems assoclaLed wlLh Lhese remlLLance flows, affecLlng boLh lndlvlduals
sendlng and recelvlng remlLLances as well as naLlonal governmenLs. 1hese problems lnclude hlgh
dlrecL and lndlrecL cosLs as well as Lhe perslsLence of large-scale lnformal markeLs. Some developlng
counLrles have en[oyed relaLlve success ln mlnlmlslng Lhese problems, whllsL oLhers have noL been
as successful. 1hls reporL focuses on Lwo naLlons, Lhe hlllpplnes and 1onga, for each of whom
remlLLances from economlc mlgranLs are an lmporLanL source of lncome. A unlque feaLure of Lhe
hlllpplnes ls Lhe exlsLence of moblle remlLLance servlces as a cholce for consumers. Moblle
remlLLances have been documenLed as havlng Lhe poLenLlal Lo address some of Lhe problems of
remlLLance flows, leveraglng Lhe beneflL Lhe hlllpplnes recelves from lLs economlc mlgranLs. 1onga
on Lhe oLher hand, has noL been as successful ln addresslng Lhe problems assoclaLed wlLh
remlLLances, sufferlng from exLremely hlgh dlrecL and lndlrecL cosLs as well as a large lnformal
markeL for Lransfers.

1he purpose of Lhls sLudy was Lo see lf Lhe success facLors LhaL led Lo Lhe developmenL of moblle
remlLLance servlces ln Lhe hlllpplnes are presenL ln 1onga. 1he meLhodology lnvolved flrsLly
ldenLlfylng Lhe success facLors for moblle remlLLances ln Lhe hlllpplnes, Lhen applylng Lhese Lo
1onga ln order Lo examlne Lhe poLenLlal for moblle remlLLances ln LhaL naLlon. llnally, Lhe reporL
offers pollcy recommendaLlons for 1onga, based on Lhe ouLcome of Lhe analysls.

1hls reporL concluded LhaL Lhe lndlvlduals - Lhe consumers - of remlLLances and flnanclal servlces ln
1onga exhlblL many of Lhe same characLerlsLlcs as lndlvlduals ln Lhe hlllpplnes, Lhe slLe of Lwo
separaLe successful and susLalnable moblle money servlces. Powever, Lhe comparaLlve analysls ln
Lhls reporL revealed lmporLanL gaps beLween Lhe Lwo naLlons ln Lerms of commerclal vlablllLy and
poLenLlally successful buslness models. ln addlLlon, lmporLanL pollcy reform would need Lo Lake
place before a moblle remlLLance or moblle money servlce could sLarL up. A key lssue for 1onga wlll
remaln Lhe capaclLy of Lhe CovernmenL Lo lmplemenL reform and hence co-operaLlon wlLh exLernal
developmenL parLners and Lhe prlvaLe secLor wlll be essenLlal Lo any pollcy developmenLs.



$
1he research work for Lhls reporL was done as parL of Lhe auLhor's program ln Lhe MA ln
uevelopmenL SLudles ln Lhe School of Soclal Sclences and lnLernaLlonal SLudles aL Lhe unlverslLy of
new SouLh Wales. 1he auLhor would llke Lo Lhank AssoclaLe-rofessor Mlchael !ohnson of unSW for
hls help and guldance wlLh Lhe research. 1hls reporL was complled ln collaboraLlon wlLh ueveloplng
MarkeLs AssoclaLes. 1he auLhor would llke Lo Lhank !onaLhan Capal of uMA Asla-aclflc for hls
lnvaluable asslsLance wlLh Lhe reporL.
%
key 1erms & Acronyms

AML
Ant|-Money Launder|ng
8S
8angko SenLral ng lllplnas (CenLral 8ank of Lhe hlllpplnes)
Lconom|c
m|grants
lndlvlduals who leave Lhelr home counLry Lo work overseas
IA1I
llnanclal AcLlon 1ask lorce on Money Launderlng.
I|nanc|a|
|nc|us|on
A measure of how many lndlvlduals wlLhln a naLlon have access Lo regular and
susLalnable flnanclal servlces
Iorma|
rem|ttances
lunds senL beLween counLrles vla regulaLed banklng and moneLary Lransfer
sysLems.

Informa|
rem|ttances
1ransfers senL elLher as cash ouLslde Lhe regulaLed moneLary sysLems or ln-klnd
as goods, glfLs or producLs
kC
know ?our CusLomer
Last m||e
8emlLLance lndusLry Lerm for problems experlenced by recelvers of remlLLances,
mosL noLably Lhe dlsLance beLween homes and remlLLance dlsLrlbuLlon polnLs
MDGs
Mlllennlum uevelopmenL Coals
Mob||e money
A range of flnanclal servlces dellvered Lo Lhe consumer vla a moblle phone.
Servlces may lnclude remlLLances, savlngs, credlL and loans
Mob||e
rem|ttance
Cross border paymenLs uLlllslng moblle phone Lechnology Lo send and/or
recelve remlLLances
Money 1ransfer
Cperators
SpeclallsL remlLLance provlders
"#$%&
Cverseas llllplno Workers - Lerm commonly used wlLhln Lhe hlllpplnes Lo refer
Lo economlc mlgranLs
CDA
Cfflclal uevelopmenL AsslsLance
kem|ttances
Cross-border, person-Lo-person paymenLs of relaLlvely low value.
2

Sachet
purchas|ng
urchaslng goods ln small quanLlLles for use on a dally basls












2
World 8ank, 2007: 6.
&
1. 8ackground

1he reduced opporLunlLles for economlc and soclal developmenL LhaL deflne developlng counLrles,
also glve rlse Lo a well documenLed flow of !"#$#%&" %&()*$+, - lndlvlduals who leave Lhelr home
counLry Lo work overseas. 1he Lerm economlc mlgranLs, alLernaLlvely referred Lo as emlgranLs or
overseas workers, wlll be used LhroughouL Lhls reporL. A common feaLure of economlc mlgranL
behavlour ls Lhe Lransmlsslon of a porLlon of earnlngs back Lo famllles, frlends and communlLles ln
Lhelr counLry of orlgln. 1hese Lransmlsslons of cash or goods are known as )!%&++*$"!, - a Lerm
deflned by Lhe World 8ank as cross-border person-Lo-person paymenLs of relaLlvely low value".
3
ln
an lncreaslngly globallsed labour markeL, rlslng levels of emlgraLlon are LranslaLlng lnLo remlLLance
flows of lncreaslng slze and lmporLance.
4
8emlLLances are caLegorlsed as belng -#)%*. - LhaL ls, funds
LhaL are senL beLween counLrles vla regulaLed banklng and money Lransfer sysLems - or &$-#)%*. -
senL elLher as cash ouLslde Lhe regulaLed moneLary sysLems or ln-klnd as goods, glfLs or producLs.

8emlLLances play a cruclal role ln Lhe processes of developmenL on boLh a naLlonal and lndlvldual
level. Cn a naLlonal level, lnLernaLlonal remlLLances offer a larger source of flnanclng for developlng
counLrles Lhan Cfflclal uevelopmenL AsslsLance (CuA), esLlmaLed for 2009 Lo be uSu$338 8llllon.
3
ln
addlLlon, remlLLances are more sLable across Lhe economlc cycle Lhan oLher forms of flnance.
6
1hese
flgures only lnclude formal remlLLances, esLlmaLed Lo accounL for approxlmaLely half of all
remlLLance flows.
7
lormal remlLLances play an lmporLanL role ln naLlonal economlc growLh - Lhey
consLlLuLe a source of forelgn exchange, poslLlvely affecLlng Lhe naLlonal balance of paymenLs and
helplng Lo pay for lmporLed goods and servlces.
8
ln addlLlon, formal remlLLances can add Lo Lhe LoLal
amounL of money avallable ln Lhe flnanclal sysLem, Lhereby lncreaslng Lhe pool of caplLal avallable
for local banklng lnsLlLuLlons Lo loan - ln Lurn, lL ls hoped LhaL Lhese loans help Lo encourage
economlc growLh Lhrough lnvesLmenL ln producLlve asseLs.
3


Cn an lndlvldual level, remlLLances are Lhe lynchpln beLween famllles and communlLles aL home and
workers based overseas. 8oLh formal and lnformal remlLLances are lmporLanL for recelvers as a
famlly based sysLem of soclal proLecLlon and poverLy allevlaLlon."
9
ln Lhls conLexL, exLenslve
research has been conducLed lnLo Lhe relaLlonshlp beLween remlLLance flows and poverLy, lnequallLy
and on a naLlonal level, achlevemenL of Lhe Mlllennlum uevelopmenL Coals (MuCs). ln counLrles
wlLh hlgh levels of remlLLances, such as 1onga, Lhese flows have been credlLed wlLh slgnlflcanLly
enhanclng levels of human developmenL by enabllng famllles Lo pay for educaLlon and healLhcare.
10

1hese lnvesLmenLs ln human caplLal have been Lracked as boosLlng lndlvldual and famlly chances of
elLher sLarLlng Lhelr own buslness or galnlng waged employmenL.
7
SLarLlng a buslness, an lnvesLmenL
ln producLlve caplLal, provldes boLh economlc beneflL on a naLlonal level and helps supporL famllles
by provldlng addlLlonal sources of lncome.
11



3
World 8ank, 2007: 6.
4
World 8ank, 2009a.
3
World 8ank, 2009a.
6
CCA, 2008: 17-20.
7
CCA, 2008: 17.
8
MaasLrlchL, 2009.

9
8rown, 2008: 18.
10
8rown & Levee, 2007.

11
8rown & Levee, 2007.
'
SLudles of remlLLances are ofLen lncluded ln a broader agenda of -&$*$"&*. &$"./,&#$ - a measure of
how many lndlvlduals wlLhln a naLlon have access Lo regular and susLalnable flnanclal servlces.
Clobally, Lhe vasL ma[orlLy of clLlzens of developlng counLrles are excluded from Lhe formal flnanclal
secLor.
12
Accordlng Lo Lhe unlLed naLlons, access Lo a well funcLlonlng flnanclal sysLem can
economlcally and soclally empower people" and hence Lhe developmenL of lncluslve flnanclal
secLors ls Lherefore a poLenLlally powerful Lool ln Lhe flghL agalnsL poverLy".
13
Supply of flnanclal
servlces has been found Lo noL [usL be a producL of hlgh lncomes per caplLa - Lhere are noLable
examples of counLrles, such as 1halland, where access Lo flnanclal servlces ls hlgh relaLlve Lo wealLh.
Chala noLes LhaL counLrles can lmprove levels of flnanclal lncluslon by creaLlng effecLlve regulaLory
and pollcy envlronmenLs and enabllng Lhe acLlons of lndlvldual flnanclal servlces provlders".
14

Lncouraglng flnanclal lncluslon ls seen as a poslLlve goal for naLlonal governmenLs and mulLllaLeral
developmenL agencles Lo pursue.

1he markeL for formal remlLLances globally ls served by a varleLy of flnanclal lnsLlLuLlons. 1hese
lnclude 8anks, !"#$% '()#*+$( ,-$()."(* /!',0*1 - speclallsL remlLLance provlders - as well as
mlcroflnance lnsLlLuLlons. rovlders of remlLLance servlces ln any counLry are Lyplcally a mlx of local
lnsLlLuLlons and larger, mulLlnaLlonal M1C's, such as WesLern unlon and Moneygram. WesLern
unlon ls Lhe largesL mulLlnaLlonal M1C, wlLh a sLrong global brand name, operaLlons ln 200
counLrles and over 330, 000 agenL locaLlons worldwlde.
13
ln addlLlon Lo Lhese formal provlders,
lnformal remlLLance provlders compeLe ln Lhe markeL by provldlng an alLernaLlve way Lo LransmlL
cash or goods. Cash can be LransmlLLed lnformally ln person (l.e. a frlend or famlly member
physlcally carrles Lhe cash beLween counLrles) or Lhrough organlsed underground channels.
AlLernaLlvely, remlLLances can be ln-klnd ln Lhe form of foods, cloLhlng or oLher commerclal
producLs. 1hese producLs are Lhen elLher sold Lo ralse lncome or consumed by lndlvlduals, famllles
or communlLles ln Lhe recelvlng counLry.

1here are a number of problems assoclaLed wlLh remlLLance flows Lo developlng counLrles, affecLlng
boLh lndlvlduals sendlng and recelvlng remlLLances as well as naLlonal governmenLs. Cne of Lhe mosL
promlnenL problems ls Lhe cosLs, boLh dlrecL and lndlrecL, lncurred by Lhe lndlvldual, or "#$,/%!), of
remlLLance servlces. ulrecL cosLs comprlse Lhe fees charged by Lhe M1C or 8ank for boLh sendlng
and recelvlng, as well as any margln charged for forelgn exchange. 1hls margln conslsLs of Lhe
dlfference beLween Lhe forelgn exchange raLe LhaL Lhe provlder ls charged and Lhe raLe Lhe provlder
charges Lhe consumer. 1he proflLs of remlLLance provlders are esLlmaLed Lo comprlse of Lwo-Lhlrds
fees and one-Lhlrd forelgn-exchange marglns.
16
lndlrecL cosLs lnclude boLh Lhe Llme and money
Laken Lo elLher send and/or collecL Lhe remlLLance: an example would lnclude a recelver of
remlLLances ln a rural area havlng Lo Lravel Lo a clLy Lo Lhe nearesL M1C offlce ln order Lo recelve
funds. roblems relaLlng Lo lndlrecL cosLs are ofLen referred Lo as .*,+ %&.! lssues ln remlLLance
Lransfers. lor naLlonal governmenLs, Lhe perslsLence of Lhe large markeL for lnformal remlLLances
remalns problemaLlc. lollowlng Lhe reasons ouLllned earller, lnformal remlLLances do noL conLrlbuLe
Lo a naLlon's recorded flnanclal flows or balance of paymenLs, Lhe funds sLaylng ouLslde of Lhe
formal flnanclal sysLem. lL ls Lherefore a generally accepLed pollcy goal of governmenLs and
mulLllaLeral agencles Lo encourage a greaLer share of remlLLances Lhrough Lhe formal secLor.

WhllsL remlLLances are slgnlflcanL Lo many developlng counLrles, Lhe problems of remlLLances
ouLllned above, vary from naLlon Lo naLlon. lndeed, some naLlons have en[oyed relaLlve success ln

12
unCul, 2009.
13
Slbley, 2007: 24.
14
Chala eL al, 2009.
13
Wu, 2009.
16
ueshpande eL al, 2003: 4.
(
mlnlmlslng Lhese problems, whllsL oLhers
have noL been as successful. 1hls reporL
focuses on Lwo naLlons, Lhe hlllpplnes and
1onga, for each of whom remlLLances from
economlc mlgranLs are an lmporLanL source
of lncome. uesplLe Lhls commonallLy, Lhe
markeL for remlLLances varles conslderably
beLween Lhe Lwo naLlons.

ln boLh 1onga and Lhe hlllpplnes,
governmenL 0#.&"&!, LhaL deal wlLh
remlLLances are lmporLanL for Lhe success
each naLlon encounLers ln mlnlmlslng Lhe
problems experlenced. As such, a porLlon of
Lhls reporL wlll focus on Lhe pollcles adopLed
by each governmenL. ln analyslng Lhese
pollcles, hls reporL uses several LheoreLlcal
ldeas from pollcy sLudles. 1he flrsL ls Lhe
concepL of $#)%*. versus 0*)*1&(%*+&" pollcy change. 1he concepL ls LhaL changes LhaL can be
sLrucLured wlLhln exlsLlng regulaLory frameworks are far easler Lo achleve. A governmenL vlewlng a
change as paradlgmaLlc wlll make lL far harder for any pollcy changes Lo be broughL abouL.
17
1he
second concepL relaLes Lo Lhe ldea of pollcy as an exerclse ln applled problem solvlng".
18
1hls ldea
sees all sLakeholders ln pollcy as seeklng Lo problem-solve for soluLlons, enabllng a more flexlble
approach Lo negoLlaLlons.

1he hlllpplnes, a developlng counLry, has a sLrong LradlLlon of economlc mlgranLs seeklng
employmenL opporLunlLles overseas. 1here are large concenLraLlons of llllplno economlc mlgranLs ln
Lhe Mlddle LasL, parLlcularly Saudl Arabla and Lhe Culf counLrles, Pong kong, Slngapore, Malaysla
and Lhe unlLed SLaLes.
20
Lconomlc mlgranLs are commonly referred Lo ln Lhe hlllpplnes as 23!),!*,
2343-3#" 5"(6$(* /,250*1. lormal remlLLances by ClW's back Lo Lhe hlllpplnes consLlLuLe 13 of
Cu, around uSu$17 8llllon.
21
lL ls esLlmaLed LhaL anoLher 30, or uSu$17 8llllon ls remlLLed
lnformally each year.
22
1he markeL for remlLLances ln Lhe hlllpplnes has been wldely sLudled, due Lo
lLs large slze, hlgh levels of compeLlLlveness and promlnenL use of new Lechnologles.
23
rovlders of
formal remlLLance servlces ln Lhe hlllpplnes lnclude banks, credlL card companles, Lhe posLal
servlce, mlcroflnance organlsaLlons and varlous nCC's. lnformal servlces are provlded by frlends and
relaLlves carrylng cash or goods back Lo Lhe hlllpplnes, pawnshops and Lruck drlvers (for domesLlc
remlLLances parLlcularly).
24


A promlnenL feaLure of Lhe llllplno remlLLance markeL ls Lhe avallablllLy of %#4&.! )!%&++*$"!
servlces
23
- cross-border paymenLs uLlllslng moblle phone Lechnology Lo send and/or recelve
remlLLances. 8ox 2 below descrlbes how a Lyplcal moblle remlLLance Lakes place. 1he key dlfference

17
PowleLL & 8amesh, 1993: 193-194.
18
ColebaLch, 2002: 126-127 quoLlng PowleLL & 8amesh.
19
ClA, 2009, 8aLha & xu, 2007a, unu, 2009.
20
Ml, 2009.
21
8osenburg, 2008.
22
Cxchange lnLervlew, 2009.
23
lor example, see Amln, 2007, lsaacs, 2008, ueshpande eL al 2003, krugel, 2007.
24
Mellyn, 2003: 8-9.
23
Amln, 2007, lsaacs, 2008, ueshpande eL al 2003, krugel, 2007.
8ox 1: h|||pp|nes ! qu|ck g|ance.
19


opulaLlon: 97,976,603
opulaLlon growLh raLe 1.937
urbanlsaLlon: 63
urban growLh raLe: 3
LlLeracy: 92.6
Cu (uSu): $166.9 8llllon
Cu growLh raLe: 3.8
Cu secLoral composlLlon:
AgrlculLure: 14.7
lndusLry: 31.6
Servlces: 33.7
opulaLlon below poverLy llne 30
8emlLLances (uSu): $16,291m
er caplLa: $183
)
beLween a moblle and 'normal' remlLLance lnvolves Lhe end credlLlng of funds ln Lhe recelvlng
counLry. 8emlLLances are normally credlLed Lo a bank accounL, collecLed ln cash by Lhe recelvlng
parLy or dellvered vla courler. As ls demonsLraLed below, a moblle remlLLance ls credlLed Lo a vlrLual
bank accounL or !56*..!+, sLored on a moblle phone. ln Lhe hlllpplnes and elsewhere, moblle
remlLLances ofLen form one parL of a broader %#4&.! %#$!7 servlce. Moblle money refers Lo a range
of flnanclal servlces dellvered Lo Lhe "#$,/%!) vla a moblle phone. Servlces can lnclude remlLLances,
savlngs, credlL and loans.

1here are Lwo ma[or compeLlLors ln Lhe moblle remlLLance markeL ln Lhe hlllpplnes
26
:

!"#$% '()(*+"",-.*#%.+-/0 SmarL ls Lhe hlllpplnes leadlng wlreless servlce provlder wlLh
almosL 38.3m subscrlbers on lLs moblle neLwork. lL's moblle remlLLance servlce - named 8%*)+
9*1*.* - has almosL 1 mllllon regular users (ouL of a LoLal economlc mlgranL populaLlon of 8 mllllon),
Lransferrlng home almosL uSu$30m per monLh.
27
users remlL funds Lhrough parLner M1C's ln 19
counLrles worldwlde.
28
SmarL adala forms parL of a broader %#4&.! %#$!7 servlce.

26
A Lhlrd enLranL, Lhe Lechnology company Luup, has announced a parLnershlp wlLh MeLrobank (a
leadlng llllplno commerclal bank) Lo provlde moblle remlLLances speclflcally from Lhe Mlddle LasL.
1hls parLnershlp was announced on SepLember 9
Lh
, 2009 and has noL yeL become operaLlonal (see
Luup, 2009). As such, Lhls reporL focuses solely on Lhe operaLlons of SmarL and Clobe.
27
lnfouev, 2006: 12.
28
lnfouev, 2006.
8ox 2: Step by step gu|de to mob||e rem|ttances |n the h|||pp|nes

llow of fund from Sender Lo kece|ver.



















AdapLed from World 8ank: Ceneral rlnclples for 8emlLLance Servlces" (2007: 38).

key 1erms
:;2: Money 1ransfer CperaLor - parLner organlsaLlon ln CounLy x LhaL has a
commerclal llnk wlLh 1elecom ln Lhe hlllpplnes. M1C Lyplcally can offer oLher (l.e.
non-moblle) forms of remlLLance.
8:8: ShorL Messaglng Servlce or 'LexL message'.
Sender pays cash Lo a parLner M1C ln CounLry x.
artner kS LransmlLs cash Lo 1elecom.
1e|ecom sends 8:8 Lo rece|ver ln Lhe hlllpplnes Lo noLlfy
Lhem of Lransfer.
kece|ver now has esos sLored ln e-walleL for furLher use.
kece|ver can now elLher 6&+<1)*6 pesos aL an agent or
+)*$,-!) pesos Lo anoLher person ln Lhe hlllpplnes vla 8:8.
1o wlLhdraw, Lhe kece|ver Lakes phone Lo an agenL and
sends a 8:8. AgenL Lhen dlsburses cash.
*

1)+2( '()(*+"",-.*#%.+-/0 Clobe ls Lhe second largesL moblle servlce provlder ln Lhe hlllpplnes.
lL's moblle remlLLance servlce, ="*,<, ls avallable ln 14 counLrles worldwlde. Clobe slLuaLes lLs Ccash
servlce wlLhln a broader moblle money offerlng LhaL allows day-Lo-day banklng, domesLlc
remlLLances and blll paymenLs vla moblle phone (Lhrough SMS).
29


1onga, llke Lhe hlllpplnes, also has a sLrong LradlLlon of economlc mlgraLlon, due Lo Lhe llmlLed
economlc opporLunlLles avallable aL home. As such, over flfLy per cenL of 1ongans are based
overseas, prlmarlly ln AusLralla, new Zealand and Lhe uSA.
30
lor Lhe counLrles of Lhe aclflc, 1onga
lncluded, lncreaslng access Lo Lhe labour markeLs of AusLralla and new Zealand glves added lmpeLus
Lo any examlnaLlon of remlLLance flows. 1hls lncreaslng access ls ln Lhe form of new labour moblllLy
schemes LhaL allow workers from Lhe aclflc Lo come Lo AusLralla and new Zealand on a seasonal
basls Lo work ln agrlculLure and horLlculLure. WlLh such a large (and lncreaslng) percenLage of
1ongans worklng abroad, remlLLances back Lo 1onga are exLremely slgnlflcanL, accounLlng for 32.3
of Cu ln 2006.
31


8emlLLances from Lhe ma[or emlgraLlon cenLres
of AusLralla, new Zealand and Lhe uSA are
recelved boLh formally and lnformally. lnformal
remlLLance flows are generally elLher carrled
back Lo 1onga as cash or goods Lo be sold. ln Lhe
caplLal, nuku'alofa, large second-hand flea
markeLs operaLe, prlmarlly selllng goods broughL
back from overseas as ln-klnd remlLLances. 1hese
goods lnclude cloLhlng, foods, elecLronlcs and
glfLs.
33
lormal remlLLance flows are carrled ouL
by large mulLlnaLlonal M1C's (WesLern unlon,
Moneygram), smaller M1C's (lMLx, World Cash),
banks (AnZ, WesLpac) and M1C's assoclaLed wlLh
Church or communlLy groups (Melel Mel Langl,
'Lpoklfo'ou Money 1ransfer).
34
All remlLLance
provlders use sLandard meLhods of cash
dlsLrlbuLlon (l.e. elLher home dellvery or
reclplenL plcks up cash from offlce). 1he
excepLlon ls Lhe WesLpac remlLLance card. 1hls
lnnovaLlve producL allows an economlc mlgranL
ln nZ Lo hold a speclallsed remlLLance bank accounL - Lhe mlgranL malnLalns one A1M card and glves
anoLher Lo Lhelr famlly ln 1onga.
33
1he famlly ln 1onga can Lhen wlLhdraw funds aL A1M's ln 1onga aL
Lhe cosL of only nZu$1.00 per LransacLlon.
36
Moblle remlLLances do noL currenLly exlsL ln 1onga as an
opLlon for economlc mlgranLs Lo Lransfer funds home.


29
lnfodev, 2006.
30
unu, 2009.
31
8aLha & xu, 2007: 1.
32
ClA, 2009, 8aLha & xu, 2007, unu, 2009.
33
8esnler, 2004.
34
See Appendlx A for sources and sample of remlLLance provlders from nZ Lo 1onga.
#&
+,- .-/0123 4-5600273- 3248 4-9:64-8 -;0-7/6<- 1=>63? 4-@=45 67 AB 67 =48-4 0= C-3=5-
=1-4206=72>D
36
Clbson eL al, 2008.
8ox 3: 1onga ! qu|ck g|ance.
32


opulaLlon: 120, 898
opulaLlon growLh raLe 1.482
urbanlsaLlon: 23
urban growLh raLe: 1.6
LlLeracy: 98.9
Cu: $0.26 8llllon
Cu growLh raLe: 1.2
Cu secLoral composlLlon:
AgrlculLure: 31.8
lndusLry: 30.6
Servlces: 37.6
opulaLlon below poverLy llne 24
LmlgranLs: 30.4
8emlLLances (uSu): $100m
er caplLa: $992
$E
2. urpose

1he overall purpose of Lhls sLudy ls Lo see lf Lhe ,/""!,, -*"+#), LhaL led Lo Lhe developmenL of
moblle remlLLance servlces ln Lhe hlllpplnes are presenL ln 1onga. AfLer compleLlng lnlLlal readlngs
for Lhe pro[ecL, Lhe ob[ecLlves for Lhe sLudy were deflned as:

1. undersLand Lhe lmporLance of moblle remlLLances Lo developmenL.
2. Clearly ldenLlfy Lhe ,/""!,, -*"+#), LhaL led Lo Lhe lnLroducLlon of moblle remlLLances ln Lhe
hlllpplnes.
3. use Lhese ,/""!,, -*"+#), as Lhe basls of an examlnaLlon of oLher poLenLlal markeLs for
moblle remlLLances.
4. Apply Lhe success facLors from Lhe hlllpplnes Lo 1onga, ln order Lo assess Lhe markeL for
moblle remlLLance servlces ln 1onga.
3. Cffer pollcy recommendaLlons based on Lhe ouLcome of Lhe analysls of 1onga.

AfLer furLher readlng was compleLed, lL became clear LhaL moblle remlLLances could noL be
separaLed from Lhe broader moblle money sysLems LhaL Lhey form a parL of. As such, whllsL sLlll
focuslng on moblle remlLLances, where approprlaLe, Lhls sLudy has researched moblle money
sysLems. 1hls ls mosL relevanL where moblle money elLher faclllLaLes moblle remlLLances, or where
Lhe remlLLance servlces offered by moblle money provlders cannoL be dlsconnecLed from Lhe overall
moblle money offerlng.

3. Methodo|ogy

1hls sLudy conslsLed of prlmarlly desk-based research. 1hls has been supplemenLed by lnLervlews
wlLh key moblle remlLLance sLakeholders ln Lhe hlllpplnes. 1hls reporL ls sLrucLured as follows:

A) 8ackground.
Alms Lo glve Lhe reader Lhe necessary background lnformaLlon ln order Lo undersLand Lhe conLexL,
purpose, language and meLhodology of Lhe reporL. ldenLlfles and explalns Lhe key concepLs LhaL
form Lhe lnLellecLual basls of Lhe reporL.

8) urpose.
CuLllnes Lhe speclflc ob[ecLlves of Lhe reporL, .

C) Methodo|ogy.
Lxplalns how Lhe reporL wlll be sLrucLured as well as Lhe loglcal progresslon of Lhe analysls.

D) Understand|ng the |mportance of mob||e rem|ttances to deve|opment.
1hls secLlon seeks Lo undersLand Lhe overall purpose of Lhe reporL ln Lhe conLexL of wlder lssues of
developmenL. llrsL, l explaln how moblle remlLLances have conLrlbuLed Lo developmenL ln Lhe
hlllpplnes. l do Lhls by explalnlng four documenLed beneflLs of Lhe servlces. l Lhen examlne how
moblle remlLLances could conLrlbuLe Lo Lhe developmenL of 1onga by applylng Lhese same four
beneflLs. ln dolng so, l seek Lo undersLand how and why moblle remlLLances would be beneflclal ln
Lhe speclflc conLexL of 1ongan developmenL.

L) Ident|fy|ng success factors for mob||e rem|ttances |n the h|||pp|nes.
1hls secLlon ldenLlfles whaL were Lhe key ,/""!,, -*"+#), ln Lhe lnLroducLlon of moblle remlLLance
servlces ln Lhe hlllpplnes. 1hese success facLors are grouped lnLo Lhree caLegorles, each caLegory
represenLlng a key sLakeholder ln Lhe moblle remlLLance lndusLry: >/,&$!,,, ?#$,/%!) and
=#3!)$%!$+.
$$

I) App|y|ng the success factors to 1onga.
1hls secLlon of Lhe reporL uses Lhe prevlously ldenLlfled ,/""!,, -*"+#), as Lhe basls of an
examlnaLlon of Lhe poLenLlal for Lhe lnLroducLlon of moblle remlLLance servlces ln 1onga. lor each
lndlvldual facLor, Lhe sLudy wlll ouLllne wheLher Lhe success facLor ls or ls noL presenL ln 1onga. 1hls
ls achleved by a quallLaLlve comparlson beLween Lhe Lwo naLlons. 8y followlng Lhls meLhodology, lL
wlll allow Lhe sLudy Lo ldenLlfy Lhe "#%%#$*.&+&!, and (*0, beLween Lhe hlllpplnes and 1onga ln
Lhe Lhree caLegorles of >/,&$!,,@ ?#$,/%!) and =#3!)$%!$+. Where dlfferences occur beLween Lhe
Lwo counLrles, Lhe reporL wlll analyse 6<7 Lhe dlfferences exlsL.

G) kecommendat|ons.
1hls secLlon makes pollcy recommendaLlons based on Lhe dlfferences hlghllghLed ln Lhe prevlous
secLlons. 1he recommendaLlons seek Lo Lake accounL of Lhe reasons 6<7 Lhe dlfferences exlsL.

n) Conc|us|on.
1he concluslon of Lhe reporL seeks Lo hlghllghL areas for furLher sLudy. lL ouLllnes meLhods ln whlch
Lhe ,/""!,, -*"+#), hlghllghLed ln Lhls reporL could be made lnLo a more rlgorous framework glven
furLher Llme and resources. lL also ldenLlfles areas of Lhe Loplc LhaL requlre furLher analysls,
parLlcularly glven consLralnLs around access Lo commerclal and oLher sorLs of confldenLlal
lnformaLlon.

4. Understand|ng the |mportance of mob||e rem|ttances to deve|opment

1he lnLroducLlon Lo Lhls reporL ouLllned Lhe connecLlons beLween remlLLances and Lhe processes of
developmenL. We saw LhaL remlLLances conLrlbuLe Lo lndlvldual and naLlonal developmenL Lhrough
lncreaslng Lhe avallable lncome for consumpLlon, lnvesLmenL ln human caplLal and lnvesLmenL ln
producLlve asseLs. lL also lnLroduced several problems wlLh currenL remlLLance sysLems, lncludlng
hlgh dlrecL and lndlrecL cosLs as well as Lhe perslsLence of large-scale lnformal markeLs.

Moblle remlLLances ln Lhe hlllpplnes have been documenLed as havlng Lhe poLenLlal Lo address
Lhese problems. 8y Lackllng Lhese speclflc lssues, moblle remlLLances are leveraglng Lhe beneflL LhaL
llllplno socleLy galns from lLs economlc mlgranLs and Lhe resulLlng remlLLances. ln dolng so, lL ls
argued LhaL moblle remlLLances poslLlvely conLrlbuLe Lo Lhe process of developmenL. l have
hlghllghLed below (lLallclsed), four speclflc beneflLs of moblle remlLLance sysLems ln Lhe hlllpplnes.
under each sLaLed beneflL, l Lhen dlscuss moblle remlLLance sysLems ln Lhe conLexL of 1onga,
showlng how Lhese same beneflLs could help address speclflc problems of developmenL experlenced
by LhaL naLlon.

! A!1/"+&#$ &$ 1&)!"+ )!%&++*$"! "#,+,B
CD

As noLed ln Lhe lnLroducLlon, 1onga has a heavy rellance on remlLLances, wlLh formal flows
accounLlng for almosL one Lhlrd of lLs Cu. uesplLe Lhls, Lhe cosL of remlLLlng Lo 1onga ls sLlll
exLremely hlgh by global sLandards. An examlnaLlon of Lhe nZ-1onga remlLLance corrldor shows LhaL
Lhe average cosL ln percenLage Lerms of slx ma[or remlLLance provlders ls 8.67 of Lhe gross monles
spenL (please see Appendlx A for daLa and noLes on calculaLlon).
38
Slmllarly hlgh prlces also exlsL ln
Lhe AusLralla-1onga and uSA-1onga remlLLance corrldors.
39
1hls compares Lo cosLs of beLween 1-2

37
Amln, 2007, lsaacs, 2008, ueshpande eL al 2003, krugel, 2007, 8aLha & 8ledburg, 2003: 16.
38
1he Lop slx are Lhe flve cheapesL provlders - WesLpac, Melle Mel Langl, World Cash 1ransfers,
lMLx Money 1ransfers & MoneyCram - as well as WesLern unlon, more expenslve, however a ma[or
player ln Lhls remlLLance corrldor. See Appendlx A for more deLalls.
39
Clbson eL al, 2008.
$"
ln more compeLlLlve remlLLance corrldors, such as Lhe uS Lo Mexlco. 1able 2 ln Appendlx A also
reveals Lhe hlgh spread ln cosLs amongsL Lhe Lop Len provlders - ranglng from 2.99 - 14.86 lL was
esLlmaLed, uslng older 2006 flgures, LhaL Lhls spread was cosLlng Lhe 1ongan economy more Lhan 4
of Cu annually. ln addlLlon Lo Lhese 'avoldable' remlLLance cosLs, sLudles ln new Zealand have
shown LhaL senders of remlLLances behave wlLh slgnlflcanL cosL elasLlclLles - reduclng dlrecL
remlLLance cosLs would ellclL an lncrease ln gross monles senL.
40
uslng Lhls analysls, Clbson,
Mckenzle and 8ohorua esLlmaLed ln 2006 LhaL a reducLlon ln remlLLance cosLs Lo beLween 1-2 (of
Lhe gross LransacLlon) would amounL Lo a 27.3 lncrease ln Lhe amounL of remlLLances recelved ln
local currency Lerms.
41


! E$")!*,! &$ +<! (!#()*0<&"*. ,0)!*1 #- 1&,+)&4/+&#$ 0#&$+,@ <!.0&$( +# )!1/"! 0)#4.!%,
)**"73).$8 93.: .:$ ;4)*. <34$0= ># .?(#@ .:3* :)* 4$8 ." ) ($8?7.3"# 3# 3#83($7. 7"*.* +"( .:$ ($7$3A$(
&$"./1&$( "#,+, *,,#"&*+!1 6&+< +)*3!. *$1 +&%! ,0!$+ "#..!"+&$( +<! )!%&++*$"!,B
42

1he daLa ln Appendlx A show LhaL Lhe WesLpac remlLLance card ls by far Lhe currenL cheapesL
remlLLance opLlon ln Lhe nZ-1onga corrldor. uesplLe Lhe large dlfference ln cosL beLween Lhls
provlder and Lhe nexL cheapesL ([usL under 6), Lhe WesLpac card ls noL Lhe mosL popular cholce for
1ongan economlc mlgranLs remlLLlng funds back from new Zealand. 1hls demonsLraLes LhaL Lhere
musL be oLher facLors aL play ln addlLlon Lo dlrecL cosLs. revlous sLudles of Lhls remlLLance corrldor
have concluded LhaL knowledge of Lhls remlLLance meLhod, access Lo A1M locaLlons and LrusL ln Lhe
servlce have conLrlbuLed Lo Lhls anomaly.
43
A comparlson by Lhe auLhors beLween Lhe locaLlons of
A1M's (where Lhe WesLpac remlLLance card can be used) and Lhe locaLlon of WesLern unlon ouLleLs
on Lhe maln 1ongan lsland of 1ongaLapu show LhaL Lhe laLLer are sLraLeglcally poslLloned Lo be
wlLhln flve kllomeLres of every vlllage on Lhe lsland. 1he convenlence of Lhe WesLern unlon
dlsLrlbuLlon ouLleLs means a reducLlon ln lndlrecL cosLs Lo Lhe recelver of remlLLances.

A reducLlon ln lndlrecL cosLs ls cruclal ln Lhe aclflc, where lL ls esLlmaLed LhaL recelvers of
remlLLances are spendlng beLween 30-30 of Lhe LoLal sums recelved ln Lravel cosLs Lo collecL Lhe
monles.
44
AlLhough Lhere ls wlde coverage by WesLern unlon on 1onga's maln lsland, one of Lhe
largesL poLenLlal lmpacLs of a moblle remlLLance servlce ln 1onga would be an lncrease ln Lhe
geographlcal spread of remlLLance dlsLrlbuLlon polnLs across all Lhe maln lslands. An examlnaLlon of
1able 3 ln Appendlx 8 shows LhaL each of Lhe flve maln lsland groups recelve slgnlflcanL levels of
remlLLances from overseas - from 66 of households on vava'u Lo 83 on nluas.
43
ln addlLlon Lo
Lhese lnLernaLlonal flows, almosL 30 of 1ongan households also recelve domesLlc remlLLances -
Lhese are even more promlnenL on Lhe ouLer lslands where relaLlves have mlgraLed Lo ma[or
populaLlon cenLres Lo seek employmenL.
46


8educlng boLh Lhe dlrecL and lndlrecL cosL of remlLLances ln 1onga would lncrease Lhe amounL of
money avallable Lo recelvlng households. ln Lurn, Lhls would glve households lncreased lncome Lo
lnvesL ln educaLlon, healLhcare and lncome produclng asseLs. 8educlng remlLLance cosLs ls Lherefore
seen Lo be asslsLlng developmenL ln 1onga.



40
Clbson, Mckenzle & 8ohorura quoLed ln Mckenzle, 2006: 9-10.
41
Clbson, Mckenzle & 8ohorura quoLed ln Mckenzle, 2006: 9-10.
42
Amln, 2007.
43
Clbson eL al, 2008: 16-17.
44
unu, 2008.
43
1uS, 2009, see Appendlx 8 for more deLalls.
46
1uS, 2009a, see Appendlx 8 for more deLalls.
$#
! E$")!*,! +<! 0!)"!$+*(! #- )!%&++*$"!, -.#6&$( +<)#/(< -#)%*. "<*$$!.,B
FD

lncreaslng Lhe flow of formal remlLLances wlll help Lo sLrengLhen Lhe flnanclal sysLem ln 1onga by
conLrlbuLlng poslLlvely Lo flnanclal llquldlLy as well as Lhe naLlonal balance of paymenLs.

! G<!)! %#4&.! )!%&++*$"!, *)! *,,#"&*+!1 6&+< +<! &%0.!%!$+*+&#$ #- * 4)#*1!) ,7,+!% #-
%#4&.! %#$!7@ *$ &$")!*,! &$ -&$*$"&*. &$"./,&#$
FH
B
1he background secLlon of Lhls reporL noLed LhaL lncreaslng -&$*$"&*. &$"./,&#$ ls a goal of naLlonal
governmenLs and mulLllaLeral developmenL agencles. 1hls goal ls parLlcularly perLlnenL ln Lhe aclflc,
where approxlmaLely 80 of low-lncome earners are excluded from Lhe flnanclal sysLem.
49
A recenL
revlew of flnanclal servlces ln Lhe aclflc concluded LhaL new sysLems were needed LhaL were
*00)#0)&*+! ln Lhe aclflc conLexL and whlch meL Lhe $!!1, of Lhe aclflc people.
30
1hls reporL
argues LhaL a moblle money servlce ln 1onga could achleve boLh of Lhese goals, Lhereby lncreaslng
flnanclal lncluslon. 8y uLlllslng a Lechnology LhaL ls boLh clearly esLabllshed and growlng, a well-
deslgned moblle money sysLem would be *00)#0)&*+! ln Lhe 1ongan conLexL. WlLh such hlgh levels
of boLh domesLlc (30 of households) and lnLernaLlonal (73 of households) remlLLances
31
,
comblned wlLh Lhe currenL hlgh dlrecL and lndlrecL cosLs, Lhere ls a clear $!!1 for a revamped
sysLem wlLhln 1onga. . See SecLlon 6 (page 21) for more deLalls on Lhe demand for and supply of
flnanclal servlces ln 1onga.

S. Success factors for mob||e rem|ttances |n the h|||pp|nes

3a. 8uslness
Commerc|a| v|ab|||ty
Moblle remlLLance servlces ln Lhe hlllpplnes are a prlvaLe secLor, proflL-orlenLed proposlLlon. Clobe
and SmarL boLh slLuaLe Lhelr servlce wlLhln a broader moblle money offerlng LhaL ls boLh popular
and proflLable.
32
1he proflLablllLy of Lhese servlces ls vlewed as boLh a key facLor ln Lhelr
lnLroducLlon
33
as well as underplnnlng Lhelr flnanclal susLalnablllLy.

8roader mob||e money offer|ng
WhllsL Lhe remlLLance servlces offered by boLh SmarL and Clobe are of slgnlflcanL value
(approxlmaLely 30 of revenue for Clobe)
34
, Lhey form [usL one parL of a broader moblle money
offerlng. lrom Lhe perspecLlve of moblle remlLLances, Lhls broader offerlng ls necessary Lo provlde
boLh a dlsLrlbuLlon mechanlsm for Lhe funds as well as offerlng complemenLary flnanclal servlces
such as savlngs and domesLlc Lransfers.

Compet|t|on |n the te|ecommun|cat|ons |ndustry
A compeLlLlve LelecommunlcaLlons lndusLry provlded Lhe commerclal moLlvaLlon for boLh SmarL and
Clobe Lo expand lnLo moblle money - each were seeklng a compeLlLlve advanLage Lo augmenL Lhelr
exlsLlng buslnesses.
33
ln dolng so, Lhe companles hoped Lo achleve some of Lhe followlng goals
36
:
F lncreased revenue per moblle neLwork subscrlber.

47
Cxchange lnLervlew, 2009.
48
orLeous
49
unu, 2008.
30
Cornford, 2001.
31
See Appendlx 8 for more deLalls & sources.
32
orLeous, 2006: 24-27.
33
SmlLh, 2004: 6-13.
34
Cxchange lnLervlew, 2009.
33
krugel, 2007: 3.
36
AdapLed from CauLam eL al, 2009: 3 and Mas & 8osenburg, 2009: 1-2.
$%
F lncreased new subscrlbers.
F 8educLlon ln cusLomer churn (l.e. cusLomer's swlLchlng neLworks).
F Added daLa Lrafflc Lo Lhelr neLwork.
F 8educed producL dlsLrlbuLlon cosLs
F AugmenLlng brandlng of moblle neLwork.

8us|ness mode|
ln Lhe case of Lhe hlllpplnes, SmarL and Clobe pursued Lwo dlsLlncL buslness models.

F I74)&1 %#1!. J8%*)+K: lnvolves a parLnershlp wlLh a banklng lnsLlLuLlon Lo provlde moblle
remlLLance and moblle money servlces.
F 9/)! %#1!. J=.#4!K: 1elecom Lakes on all aspecLs of Lhe remlLLance and money producLs
lncludlng banklng and admlnlsLraLlon.

Lach of Lhe models lnvolves parLnershlps wlLh lnLernaLlonal remlLLance provlders Lo faclllLaLe
servlces.
37
WhllsL Lhe success of boLh models makes dlfferenLlaLlon dlfflculL, Lhls was ln large parL
due Lo Lhe flexlblllLy of Lhe regulaLory reglme. 1he ma[orlLy of pracLlLloner llLeraLure regardlng
moblle remlLLances/money regards Lhe hybrld model as superlor: by parLnerlng wlLh an already
llcensed flnanclal lnsLlLuLlon, Lelecoms can access credlL and flnanclal managemenL faclllLles as well
as avoldlng flnanclal regulaLlon.
38


1arget|ng the bottom of the pyram|d market
Clobe and SmarL each pursued sLraLegles LhaL LargeLed Lhe lower-mlddle, low and poverLy level
groups" comprlslng Lhe bulk of Lhe hlllpplnes populaLlon".
39
ueveloplng moblle remlLLance and
money producLs LhaL saLlsfled Lhe needs of Lhls prevlously underserved porLlon of Lhe markeL,
proved Lo be a susLalnable and proflLable buslness sLraLegy.
60


3b. Consumer
ln creaLlng Lhese servlces, 8aLha and 8ledburg descrlbe Lhe Lwo Lelecoms as havlng creaLed an
lnnovaLlve producL based on Lhe cusLomer's needs, hablLs and posslblllLles".
61
1hls producL was
culLurally and soclally speclflc Lo llllplno socleLy, creaLlng Lhe success facLors llsLed below:

n|gh |eve|s of rem|ttances
1he slgnlflcanL slze of Lhe llllplno remlLLance markeL has meanL an aLLracLlve buslness proposlLlon
for boLh SmarL and Clobe. ln addlLlon, Lhe posslblllLy of aLLracLlng Lhe approxlmaLely 30 of
remlLLances senL Lhrough lnformal channels,
62
has lncreased Lhe aLLracLlveness even furLher.

Mob||e phones: preva|ence |n soc|ety & the econom|c m|grant re|at|onsh|p
As ls common Lo many developlng counLrles, moblle peneLraLlon ln Lhe hlllpplnes ls hlgher Lhan
flxed llne LelecommunlcaLlon servlces,
63
aL a raLlo of more Lhan 16:1.
64
1he moblle phone ls cenLral
Lo Lhe economlc mlgranL-famlly relaLlonshlp, provldlng Lhe key polnL of conLacL for famlly and
frlends. Moblle remlLLance servlces were successful ln uLlllslng a Lechnology prevalenL ln boLh

37
lor a fuller explanaLlon of Lhe buslness models used ln Lhe hlllpplnes, see lnfouev, 2006: 16-22.
38
lnfouev, 2006: 13, Amln, 2007.
39
lnfouev, 2006: 8.
60
SmlLh, 2004: 6.
61
8aLha & 8ledburg, 2003: 16.
62
CCA, 2008: 17.
63
SmlLh, 2004: 11.
64
l1u, 2009.
$&
sendlng and recelvlng counLrles, a Lechnology flrmly wlLhln Lhe soclal and culLural conLexL of Lhe
user.
63


opu|ar|ty of SMS
1he hlllpplnes ls Lhe ofL-quoLed LexLlng 'caplLal of Lhe world'
66
, reasons glven lnclude Lhe low cosL
of servlces (approxlmaLely uSu$0.01-2 per SMS), a conLlnuaLlon of Lhe llllplno oral LradlLlon and Lhe
comblnaLlon of Lhe lnformallLy of speech wlLh Lhe reflecLlveness of wrlLlng".
67
Moblle remlLLance
servlces ln Lhe hlllpplnes uLlllse SMS ln order Lo pass lnsLrucLlons beLween Lhe consumer and Lhe
LelecommunlcaLlons company - uLlllslng a servlce LhaL boLh sender and recelver are lnLlmaLely
famlllar wlLh.

repa|d mob||e subscr|b|ng
repald servlces are prevalenL ln Lhe llllplno moblle markeL.
68
1hls ls slgnlflcanL as lL means by
adopLlng a slmllar prlclng sLrucLure, moblle remlLLances could easlly gel wlLh Lhe exlsLlng producLs
and servlces offered by SmarL & Clobe, smooLhlng consumer upLake.

Sachet purchas|ng
1he pre-pald culLure ls parL of a buslness sLraLegy LhaL soughL Lo Lake advanLage of Lhe phenomenon
of 'sacheL' purchaslng - LhaL ls purchaslng goods ln small quanLlLles for use on a dally basls.
69

MarkeLlng moblle remlLLance producLs ln 'sacheL' sLyle has been a ma[or facLor ln Lhelr successful
upLake.
70


D|str|but|on networks
lor moblle remlLLance producLs, Lhe dlsLrlbuLlon neLworks where recelvers of remlLLances can cash-
ouL" are cruclal for success. Clobe and SmarL have parLnered wlLh a number of naLlonal reLall sLores
lncludlng pawnshops and supermarkeLs Lo provlde Lhls neLwork. ln addlLlon, Clobe ls ln Lhe flnal
sLages of negoLlaLlon wlLh Lhe 8S Lo use lLs enLlre neLwork of 13,000 sub-dealers
71
as dlsLrlbuLlon
polnLs for lLs moblle remlLLance producLs.
72
1hls wlll greaLly enhance lLs producL offerlng and glve
furLher beneflLs Lo consumers, furLher reduclng problems assoclaLed wlLh Lhe lasL mlle" of
remlLLance Lransfers.

Consumer concerns: trust & brand|ng
ln oLher parLs of Lhe world, bulldlng consumer LrusL ln moblle remlLLance and money sysLems has
been dlfflculL due Lo Lhe servlces belng provlded by new brand-names.
73
Clobe and SmarL avolded
Lhese problems ln parL by uLlllslng Lhelr well-known Lelecom brands - ln mosL cases, Lhese had
sLronger brandlng recognlLlon Lhan mosL local banks.
74





63
Slngh, 2009: 321.
66
uonner, 2007: 148, SmlLh, 2004: 13.
67
erLlerra eL al quoLed ln SmlLh, 2004: 11.
68
uonner, 2007: 146.
69
SmlLh, 2004: 6.
70
lnfouev, 2006: 8-9.
71
Sub-dealers are shops and lndlvlduals LhaL sell alr-Llme (prepald moblle credlL). 1hese are locaLed
wlLhln small reLall ouLleLs naLlonwlde.
72
Manlego-Lala, 2009.
73
orLeous, 2006: 39.
74
oreLous, 2006: 21.
$'
3c. CovernmenL
Lnab||ng env|ronment for mob||e rem|ttances
A comprehenslve sLudy of pollcy approaches Lo moblle money by uavld orLeous, advocaLes an
enabllng envlronmenL" LhaL promoLes a susLalnable Lra[ecLory of markeL developmenL".
73
1o a
large exLenL, Lhe llllplno governmenL, represenLed prlmarlly by Lhe 8angko SenLral ng lllplnas (8S),
has been able Lo creaLe Lhls envlronmenL. 1hree key feaLures of Lhelr approach Lo pollcy lnclude:

F L.!M&4&.&+7 N #0!$$!,, &$ 0#.&"7 ,!++&$(B
When SmarL & Clobe began Lo offer moblle remlLLance/money servlces, no formal regulaLlons
exlsLed Lo deal wlLh Lhese new Lypes of LransacLlons. As such, Lhe success of ongolng co-operaLlon ln
negoLlaLlons beLween Lhe Lelecoms and Lhe regulaLors were a key success drlver" ln Lhe
lmplemenLaLlon of servlces.
76
A speclflc revlew of Clobe's negoLlaLlons wlLh Lhe CovernmenL found
LhaL flexlblllLy and openness from 4#+< sldes was essenLlal ln securlng a 'wln-wln' soluLlon LhaL
avolded large amounLs of unnecessary regulaLlon.
77
ln Lhls respecL, Lhe regulaLory approach has
been helped by Lhe progresslve aLLlLude" of Lhe 8S.
78


F 9)#%#+&#$ #- 6&$56&$ ,"!$*)&#,B
WhllsL Clobe and SmarL were moLlvaLed by commerclal conslderaLlons, negoLlaLlons over regulaLory
pollcy were also lnformed by Lhree dlsLlncL goals of Lhe 8S:

(l) ueslre Lo remove Lhe hlllpplnes from Lhe lA1l
79
llsL of non-compllanL counLrles.
80

rlor Lo Lhe lnLroducLlon of moblle money sysLems ln Lhe hlllpplnes, Lhe naLlon was on Lhe lA1l
llsL for noL complylng wlLh anLl-money launderlng procedures. 1he advanced operaLlonal
sysLems of SmarL and Clobe have lmproved efforLs by Lhe 8S Lo monlLor fraudulenL
LransacLlons wlLhln Lhe flnanclal sysLem. 1he 8S has been able Lo use Lhe lmproved AML, k?C
and anLl-fraud monlLorlng sysLems provlded by Lhe 1elecoms as parL of Lhelr moblle money
servlces as evldence of lLs efforLs Lo counLer money-launderlng.

(ll) ueslre Lo lncrease Lhe share of remlLLances Lhrough Lhe formal sysLem.
WlLh approxlmaLely 30 of remlLLances flowlng Lhrough lnformal channels, Lhe 8S was
sympaLheLlc Lo new remlLLance servlces LhaL capLured some of Lhls esLlmaLed uSu$17 8llllon
Lhrough Lhe formal banklng sysLem.
81


(lll) lncrease ln flnanclal lncluslon.
WlLh approxlmaLely 80 of Lhe hlllpplnes noL covered by LradlLlonal flnanclal servlces, Lhe 8S
saw Lhe moblle remlLLance/money servlces as an opporLunlLy Lo expand flnanclal lncluslon.
82


F 8&%&.*)&+&!, &$ 0)&"&$( ,+)/"+/)!,B
Comparlsons of Lhe prlclng sLrucLures of moblle remlLLance/money producLs Lo exlsLlng pre-pald
moblle producLs flnds LhaL Lhey are very slmllar.
83
1hls was exLremely lmporLanL as lL meanL LhaL Lhe

73
orLeous, 2006: 3-4.
76
Cxchange lnLervlew, 2009.
77
CauLam eL al, 2006: 6-12.
78
Cxchange lnLervlew, 2009.
79
lA1l ls Lhe llnanclal AcLlon 1ask lorce on money launderlng. lL malnLalns a 'blackllsL' of naLlons
noL consldered Lo be compllanL wlLh anLl-money launderlng rules and regulaLlons.
80
Lelshman, 2009, Cxchange lnLervlew, 2009.
81
Cxchange lnLervlew, 2009.
82
Cxchange lnLervlew, 2009.
83
lnfouev, 2006: 12-16.
$(
8S and oLher regulaLory agencles were able Lo deal wlLh many of Lhe prlclng lssues ln a manner
conslsLenL wlLh exlsLlng regulaLlon. 1hls ls conslsLenL wlLh Lhe $#)%*. - as opposed Lo paradlgmaLlc
- pollcy process ouLllned ln secLlon 1.

o||c|es that supported the expans|on of the te|ecommun|cat|ons sector
AlLhough recenL moves Lo lncrease LaxaLlon on Lhe secLor may have reversed Lhls pollcy,
84
CCA
found LhaL governmenL pollcles LhaL supporL Lhe expanslon of Lhe LelecommunlcaLlons secLor"
were also a facLor ln Lhe successful lnLroducLlon of moblle remlLLance/money servlces.
83


roact|ve approach to work|ng econom|c m|grants
1he hlllpplnes has malnLalned a conslsLenLly pro-acLlve approach Lo lLs economlc mlgranLs,
adopLlng formal pollcy measures slnce 1974.
86
1hese efforLs have been descrlbed as a sophlsLlcaLed
pollcy reglme Lo promoLe and regulaLe labour emlgraLlon."
87


1ab|e 1: Summary of success factors |n the h|||pp|nes.
Category Success Iactor |n the h|||pp|nes
8uslness Commerclal vlablllLy
8uslness 8roader moblle money offerlng.
8uslness 1elecom compeLlLlon
8uslness 8uslness model
8uslness 1argeLlng Lhe 8C markeL
Consumer Plgh levels of 8emlLLances
Consumer Moblle phones: prevalence ln socleLy & Lhe economlc mlgranL
relaLlonshlp.
Consumer opularlLy of SMS
Consumer repald moblle subscrlblng
Consumer SacheL purchaslng
Consumer ulsLrlbuLlon neLworks.
Consumer Consumer concerns: LrusL & brandlng.
CovernmenL Lnabllng envlronmenL for moblle remlLLances
CovernmenL L.!M&4&.&+7 N #0!$$!,, &$ 0#.&"7 ,!++&$(B
CovernmenL 9)#%#+&#$ #- 6&$56&$ ,"!$*)&#,
CovernmenL 8&%&.*)&+&!, &$ 0)&"&$( ,+)/"+/)!,B
CovernmenL ollcles LhaL supporL Lhe LelecommunlcaLlons secLor
CovernmenL roacLlve approach Lo economlc mlgranLs.








84
Cxchange lnLervlew, 2009.
83
CCA, 2008: 76.
86
Agullar !r, 2007: 137-164.
87
C'nelll, 2004.
$)
6. App|y|ng the success factors to 1onga

1hls secLlon alms Lo hlghllghL Lhe slmllarlLles and dlfferences beLween Lhe hlllpplnes and 1onga,
uLlllslng Lhe llsL of success facLors LhaL are summarlsed above ln 1able 1. Lach success facLor ls
caLegorlsed as belng elLher a "#%%#$*.&+7 or as experlenclng (*0,.

6a. 8uslness
?#%%#$*.&+&!,
! 1e|ecom compet|t|on.
1he Lelecoms markeL ln 1onga has Lwo provlders of moblle servlces, ulglcel and Lhe 1onga
CommunlcaLlons CorporaLlon (1CC). 1onga was one of Lhe flrsL naLlons ln Lhe aclflc Lo llberallse lLs
LelecommunlcaLlons secLor. osL-llberallsaLlon saw Lhe emergence of ulglcel as a compeLlLor Lo Lhe
esLabllshed 1CC. 1he ensulng compeLlLlon has resulLed ln a rapld lncrease ln LeledenslLy, a large fall
ln Lhe walLlng llsL of Lhose wlshlng Lo use servlces and a 200+ decllne ln Larlffs.
88
Slnce Lhelr
enLrance Lo Lhe markeL ln 2007, ulglcel have already lnvesLed 1Cn$20m ln Lhelr 1ongan neLwork
and operaLlons, slgnallng a long-Lerm commlLmenL Lo a poslLlve buslness opporLunlLy, wlLh a sLaLed
goal of becomlng Lhe number one operaLor ln Lhe klngdom.
89
Cverall, alLhough Lhe level of
compeLlLlon ln Lhe 1ongan Lelecoms markeL ls noL as hlgh as ln Lhe hlllpplnes, for Lhe small slze of
Lhe markeL, lL can be consldered reasonably compeLlLlve.


! 1arget|ng the 8C market
AlLhough a lack of daLa makes esLlmaLlon dlfflculL
93
, evldence from academlc sLudles suggesLs LhaL
1ongan socleLy ls hlghly sLraLlfled.
94
1onga ranks hlghly on a number of developmenL lndlcaLors
compared wlLh lLs aclflc nelghbours - lL has a Puman uevelopmenL lndex ranklng of 99
Lh
ouL of 182
counLrles globally.
93
uesplLe Lhls relaLlvely hlgh level of developmenL, Lhere sLlll exlsLs a large,
relaLlvely poor segmenL of Lhe markeL - Lhe boLLom of Lhe pyramld. Lven Lhough preclse

88
1oLel, 2009.
89
Cellular news, 2009.
90
Au8, 2008: 31.
91
Au8, 2008: 33.
92
1onga, 2009.
93
lor example, ln Lhe 2009 un Puman uevelopmenL 8eporL, sLaLlsLlcs do noL exlsL for 1onga for Lhe
raLlon of rlchesL v pooresL 10 of Lhe populaLlon and Lhe overall glnl co-efflclenL/lndex.
94
See 8esnler, 2004: 11 for a dlscusslon on class ln 1onga.
93
unu, 2009.
8ox 4: Supp|y of f|nanc|a| serv|ces |n 1onga.
Cverall, Lhe Au8 descrlbes 1onga as havlng Lhe besL developed flnanclal markeL ln Lhe
aclflc reglon."
90
1onga has 3 ma[or commerclal banks: WesLpac, AnZ (AusLralla & new
Zealand 8anklng Croup) and Lhe M8l (Malayslan 8anklng llnance) as well as Lhe SLaLe-run
1onga uevelopmenL 8ank. Lach of Lhe commerlcal banks was proflLable ln 2008.

1he Mlcroflnance lndusLry ln 1onga ls ln lLs lnfancy, wlLh a small number of operaLors.
91

MosL recenLly, SouLh aclflc 8uslness uevelopmenL, a reglonal mlcroflnance agency
LargeLlng women, has opened an offlce ln Lhe caplLal. lnlLlaLlves Lo sLarL a CovernmenL run
credlL unlon, whlch could serve as a grassrooLs bank, are also currenLly belng explored by
Lhe MlnlsLry of Labour, Commerce & lndusLrles.
92


$*
assessmenLs of demand are dlfflculL,
96
Lhe facL LhaL 73 of households recelve lnLernaLlonal
remlLLances bodes means LhaL any new servlce would have Lo be LargeLed aL Lhe ma[orlLy of Lhe
populaLlon.
97
1hese flgures are relnforced by unu research LhaL noLes LhaL demand for
remlLLances was evldenL ln all counLrles of Lhe aclflc, wlLh a sysLem for handllng boLh domesLlc and
lnLernaLlonal Lransfers lmporLanL.
98
uemand for a broader specLrum of flnanclal servlces wlll be
dlscussed below.

! 8roader mob||e money offer|ng
WhllsL counLry speclflc daLa on flnanclal excluslon ls noL avallable for 1onga
99
, reglonally lL ls
esLlmaLed LhaL 80 of low-lncome earners ln Lhe aclflc do noL have access Lo flnanclal servlces.
uesplLe aLLempLs by AnZ Lo expand access Lo banklng ln rural areas, Lhls has a llmlLed geographlcal
reach, only servlng Lhe maln lsland of 1ongaLapu.
100


=*0,
! Commerc|a| v|ab|||ty.
AlLhough lL ls beyond Lhe scope of Lhls reporL Lo conducL a formal cosL/beneflL analysls of Lhe
poLenLlal commerclal opporLunlLy ln 1onga, Lhe small slze of Lhe markeL does pose problems for any
moblle remlLLance or moblle money provlder. WlLh a LoLal populaLlon of [usL over 100, 000 people,
1onga does noL compare favourably wlLh Lhe hlllpplnes. 8y comparlson, ln Lhe laLLer, SmarL's
adala servlce alone had almosL 1 mllllon regular users.
101
ln addlLlon, 1onga had only 13,397 wage
and salary earners (as aL Lhe 2003 census).
102
1hls flgure ls slgnlflcanL as lL ls Lhese formal secLor
employees who would provlde Lhe bulk of domesLlc remlLLances provlded by a moblle money
sysLem. As was seen ln Lhe hlllpplnes, Lhe commerclal vlablllLy of a moblle money servlce ls vlLal ln
ensurlng Lhe susLalnablllLy of servlces. AlLhough moblle remlLLances and money servlces are able Lo
use Lechnology Lo slgnlflcanLly reduce overheads,
103
wheLher Lhe reducLlons wlll be of such a scale Lo
warranL a commerclally vlable (and susLalnable) enLerprlse would need Lo be Lhe sub[ecL of a formal
flnanclal analysls.

! 8us|ness mode|
1he successful buslness model ln 1onga wlll very much depend on Lhe regulaLory reglme LhaL ls puL
ln place. lor example, sLrlngenL requlremenLs for obLalnlng a banklng llcense may force a poLenLlal
moblle remlLLance provlder Lo parLner wlLh an esLabllshed banklng lnsLlLuLlon ln order Lo galn access
Lo a llcensed flnanclal servlces provlder. As noLed earller, evldence from oLher moblle money
deploymenLs globally have led Lo a preference for Lhls parLnershlp model. ln Lhe case of 1onga,
uncerLalnLy around Lhe small slze of Lhe commerclal opporLunlLy may mean LhaL regulaLors have Lo
be open Lo dlfferenL models and operaLlng parLnershlps.







96
unu, 2008: 3.
97
1onga ueparLmenL of SLaLlsLlcs, 2009.
98
unu, 2008: 3-8.
99
1he mosL comprehenslve global survey of flnanclal lncluslon, Lhe CCA
publlcaLlon llnanclal Access 2009", conLalns no daLa for 1onga.
100
AnZ, 2009.
101
lnfouev, 2006: 12.
102
1uS, 2009.
103
unu, 2008: 7.
"E
6b. Consumer
?#%%#$*.&+&!,
! n|gh |eve|s of rem|ttances.
WlLh [usL over 30 of lL's populaLlon based overseas, prlmarlly ln AusLralla, new Zealand and Lhe uS,
lL ls noL surprlslng LhaL 1onga recelves exLremely hlgh levels of remlLLances. lnward remlLLance flows
ln 2007 were uSu$100m or uSu$992 per caplLa
104
. 1hls equaLes Lo 40 of Cu.
103
Cverall, 73 of
famllles wlLhln 1onga recelve remlLLances from overseas.
106
ln addlLlon, remlLLances are recelved
across Lhe naLlon - Appendlx 8 shows LhaL a mlnlmum of Lwo Lhlrds of households on each of Lhe
flve maln lsland groups recelves lnLernaLlonal remlLLances.

! Mob||e phones |n soc|ety & the econom|c m|grant re|at|onsh|p.
1onga currenLly has moblle peneLraLlon of 48.73. AlLhough Lhls ls subsLanLlally less Lhan Lhe
hlllpplnes (73.39), 1onga's compounded annual growLh raLe of moblle phone use (from 2003-08) of
33 compares favourably Lo Lhe 24.8 growLh of Lhe hlllpplnes.
107
ln addlLlon, 1onga ls only ln lLs
flrsL decade of Lelecom llberallsaLlon - LeledenslLy lncreased from 3.4-30 from 2002-2007 alone
108

(lL has also been only Lwo years slnce ulglcel, a ma[or player, sLarLed operaLlng). ln addlLlon, Lhere ls
evldence Lo suggesL LhaL famllles wlLh members who have emlgraLed abroad have a much hlgher use
of moblle phones, wlLh one such sLudy showlng LhaL 77 of households wlLh members worklng ln
new Zealand had a moblle phone.
109
WlLh access Lo Lhe lnLerneL noL yeL wldespread ln 1onga, Lhe
moblle phone ls clLed as a key communlcaLlon Lool beLween economlc mlgranLs and famllles,
communlLles & churches aL home ln 1onga.
110


! opu|ar|ty of SMS.
1he SMS, or LexLlng, phenomenon ls noL as wldely sLudled ln 1onga and sLaLlsLlcs are noL readlly
avallable. As a subsLlLuLe, Lhls reporL argues LhaL Lhere are Lwo sLrong Lechnologlcal precedenLs for
uslng SMS-based moblle remlLLance/banklng sysLems. 8ox 3 below demonsLraLes Lhe flrsL precedenL
- namely LhaL currenL procedures Lo use prepald moblle phones ln 1onga use slmllar lnsLrucLlons Lo
moblle money sysLems ln Lhe hlllpplnes. 1he second precedenL lnvolves a ulglcel producL ln 1onga
named 'CredlL Me, CredlL ?ou'. 1hls servlce allows anyone on Lhe ulglcel neLwork Lo Lransfer prepald
phone credlL Lo anyone else on a ulglcel phone, regardless of hls or her locaLlon ln Lhe world.
111

LffecLlvely, Lhls ls an lnLernaLlonal Lransfer of an ln-klnd good - an lnformal remlLLance. 1hls ls
lmporLanL as ln Lhe hlllpplnes, a slmllar servlce offered by Clobe was named as seLLlng an lmporLanL
consumer precedenL - Lhe facL LhaL consumers already used Lhls producL, made Lhe
concepLuallsaLlon of elecLronlc money necessary Lo use moblle remlLLance and moblle money
sysLems far easler, enhanclng upLake of Lhese new servlces.
112








104
unu, 2009.
103
Au8, 2008: 33
106
1onga ueparLmenL of SLaLlsLlcs, 2009.
107
l1u, 2009.
108
Slope, 2008.
109
Clbson, Mckenzle & 8ohorua, 2008.
110
Lee, 2004: 233.
111
ulglcel, 2009a.
112
Cxchange lnLervlew, 2009.
"$

! repa|d mob||e subscr|b|ng.
lL was noL posslble Lo obLaln Lhe exacL breakdown of pre-pald and posL-pald moblle subscrlbers ln
1onga. Powever, prevlous sLudles have shown LhaL 79 of moblle users ln low-lncome counLrles
have been found Lo use prepald servlces.
113


! Sachet purchas|ng.
AlLhough Lhls phenomenon ls noL as wldely documenLed ln 1onga, evldence from Lhe pre-pald
prlclng sLrucLures of ulglcel & 1CC suggesL LhaL a slmllar LacLlc could be successful ln Lhe klngdom.
1he lowesL Lop-up amounL for pre-pald moblles ls 1Cn$3 for ulglcel and 1Cn$3 for 1CC. Any moblle
money offerlng would need Lo be prlced ln a reallsLlc, pay-per-use manner, conslsLenL wlLh 1ongan
levels of affordablllLy.

! D|str|but|on networks.
1onga conLalns a neLwork of reLall ouLleLs capable of funcLlonlng as dlsLrlbuLlon neLworks for moblle
remlLLance producLs. WhllsL Lhe geographlcal spread of offlces of Lhe Lwo Lelecoms, 1CC and ulglcel,
currenLly covers less LerrlLory Lhan WesLern unlon
114
(a ma[or compeLlLor ln Lhe remlLLance
buslness), uLlllslng Lhelr neLwork of alrLlme resellers
63
could slgnlflcanLly boosL Lhelr geographlcal
reach. 1hls would requlre exLenslve pollcy developmenL, conslderlng LhaL Lhe hlllpplnes, a maLure
moblle remlLLance/money markeL, ls only [usL reachlng Lhe sLage of allowlng Lhls move afLer almosL
seven years of moblle money servlces.
113





113
orLeous, 2006:21.
114
See Clbson eL al, 2008: 29 for a geo-coded map of A1M and WesLern unlon locaLlons wlLhln
1onga. See Lhe ulglcel and 1CC webslLes for Lhe locaLlon of Lhelr offlces.


113
Manlego-Lala, 2009.
8ox S: SMS |nstruct|ons |n 1onga & the h|||pp|nes
AlLhough daLa on Lhe number of SMS senL ln 1onga ls noL readlly avallable, Lhe
sLudy hopes Lo draw a comparlson beLween exlsLlng meLhods of Lopplng up pre-
pald credlL ln 1onga and Lhe moblle remlLLance/money sysLems ln Lhe hlllpplnes.

lnsLrucLlons Lo Lop-up prepald credlL ln 1onga uslng ulglcel:
F ress *121*voucher number#
F ress SLnu and check phone for conflrmaLlon

lnsLrucLlons Lo send Ccash ln Lhe hlllpplnes:
F AMCun1<space>4-dlglL pln
F SLnu Lo 2882+10 dlglL cellphone number of Lhe reclplenL.

We can clearly see LhaL Lhe Lwo seLs of lnsLrucLlons are slmllar, boLh uLlllslng SMS
proLocols Lo dellver lnsLrucLlons. 1hls provldes a sLrong precedenL for uslng SMS-
based banklng ln 1onga.

Sources: ulglcel, 2009, Clobe, 2009.
""
! Consumer concerns: trust & brand|ng.
ulglcel ln 1onga maLches Lhe brand recognlLlon of SmarL and Clobe ln Lhe hlllpplnes. 1he rapld
growLh of ulglcel ln 1onga has relled on a heavy focus on brand promoLlon and adverLlslng. As such,
afLer only Lwo years of operaLlons, lL ls a well-esLabllshed and wldely recognlsed brand name wlLhln
Lhe klngdom. AnecdoLal evldence surroundlng Lhe launch of ulglcel 1onga suggesLs LhaL a slmllar
moblle remlLLance/money launch could be successful.
116


6c. CovernmenL
?#%%#$*.&+&!,
! S|m||ar|t|es |n pr|c|ng structures.
1he precedenL of slmllarlLy ln prlclng beLween pre-pald moblle and moblle remlLLance/money
producLs has Lhe poLenLlal Lo exlsL ln 1onga. A moblle money provlder could effecLlvely bulld on Lhe
currenL prlclng sLrucLures of Lhe Lwo 1elecom companles, helplng Lo slmpllfy Lhe necessary changes
ln pollcy.

! o||c|es that support the te|ecommun|cat|ons sector.
1onga was Lhe flrsL naLlon ln Lhe aclflc Lo llberallse lLs LelecommunlcaLlon secLor.
117
As such, lL has
en[oyed some of Lhe lowesL call raLes and one of Lhe mosL compeLlLlve markeLs ln Lhe aclflc. 1he
Lwo mosL lmporLanL pollcles wlLh respecL Lo LelecommunlcaLlons are:

?#%%/$&"*+&#$, O"+ PQQQ: covers consumer proLecLlon, Larlff managemenL, flxed llcenslng Lerms,
unlversal servlce pollcles, anLl-compeLlLlve pollcles and arblLraLlon procedures.
118


?#%%/$&"*+&#$, 9#.&"7 PQQQ:
119
drafLed four key prlnclples:
l. nurLurlng a susLalnable and flnanclally vlable communlcaLlons secLor.
ll. Maxlmlslng lnfrasLrucLure avallablllLy.
lll. SupporLlng lndusLry lnvesLmenL.
lv. ALLracLlng & maxlmlslng sLraLeglc and economlc beneflLs from communlcaLlon asseLs.

ln Lerms of pollcy prlnclples, use of Lhe LelecommunlcaLlon neLwork for a moblle remlLLance/money
servlce would be seen Lo be supporLlng prlnclples (l) ln LhaL lL could enhance commerclal
opporLunlLles and prlnclple (lv) by maxlmlslng sLraLeglc (developmenLal) and economlc beneflLs from
Lhe LelecommunlcaLlons neLwork.

=*0,
! Lnab||ng env|ronment for mob||e rem|ttances.
A aclflc-wlde sLudy of Lhe readlness of CovernmenLs Lo embrace moblle remlLLance/money
reforms, found LhaL alLhough Lhe regulaLory envlronmenL does noL speclflcally prohlblL moblle
money servlces, lmplemenLaLlon of Lhese new dellvery channels wlll pose challenges.
120
1wo speclflc
regulaLory reforms are noLed as necessary:

l. k?C: CurrenL regulaLlons regardlng necessary ldenLlflcaLlon of new banklng cusLomers ln
1onga would make lL dlfflculL for a wlde neLwork of agenLs Lo ldenLlfy and reglsLer new
cusLomers. 8egulaLory reform would have Lo balance consumer proLecLlon and anLl-
fraud lssues wlLh expandlng Lhe accesslblllLy of accounL openlng.

116
Punslcker, 2008.
117
Cfa, 2008: 70.
118
Cfa, 2009.
119
Cfa, 2009.
120
unu, 2008: 39.
"#

ll. rudenLlal regulaLlons relaLlng Lo 3
rd
parLy agenLs: CurrenLly, no leglslaLlon exlsLs Lo monlLor
3
rd
parLy agenLs who may conducL flnanclal LransacLlons on behalf of a moblle
money/remlLLance provlder. 1hese regulaLlons would have Lo be esLabllshed and
guldellnes for Lhe necessary conLrols be developed ln con[uncLlon wlLh poLenLlal servlce
provlders. WlLhouL regulaLlons for 3
rd
parLy agenLs, lL wlll be dlfflculL for a moblle
remlLLance provlder Lo lncrease Lhe geographlcal spread of Lhelr dlsLrlbuLlon polnLs
beyond Lhose offered by currenL remlLLance servlce provlders. 1hls would
consequenLlally llmlL Lhe poslLlve developmenLal lmpacLs of a moblle remlLLance servlce.

- I|ex|b|||ty & openness |n po||cy sett|ng
WhllsL lL ls dlfflculL Lo predlcL fuLure pollcy behavlour, a key lssue wlLhln 1onga wlll be Lhe capaclLy of
Lhe governmenL Lo lmplemenL reform. 1hls capaclLy wlll depend upon Lhe flnanclal and human
resources avallable Lo Lhe governmenL. ln addlLlon, Lhe hlgh flows of forelgn ald Lo 1onga -
equlvalenL Lo 12 of Cnl ln 2007
121
- means LhaL lnLeracLlons wlLh lndlvldual and mulLllaLeral ald
donors wlll be essenLlal Lo promoLlng any pollcy reform.

- romot|on of w|n-w|n scenar|os
1he regulaLory auLhorlLles ln 1onga could also vlew Lhe lnLroducLlon of moblle remlLLances/money
as a chance Lo achleve Lwo prlmary ob[ecLlves:
(lv) lncrease Lhe share of remlLLances flowlng Lhrough Lhe formal sysLem.
(v) lncrease flnanclal lncluslon.

1hls would need Lo be balanced agalnsL Lhe proLecLlons LhaL currenL regulaLlons provlde lncludlng
prudenLlal supervlslon and anLl-fraud monlLorlng (encompasslng AML and k?C provlslons).

! roact|ve approach to econom|c m|grants.
1he 1ongan governmenL malnLalns a 'ueparLmenL of 1ongans Abroad' whlch co-ordlnaLes pollcy
wlLh respecL Lo lLs mlgranL populaLlon. Some of Lhe ma[or lnlLlaLlves lnvolve conLlnued negoLlaLlons
wlLh AusLralla and new Zealand regardlng access Lo seasonal labour markeLs ln Lhose counLrles.
WhllsL Lhe number of workers senL so far Lo AusLralla has been llmlLed, Lhe scheme has en[oyed
success ln new Zealand. SLudles have shown LhaL laLLer scheme has opened up new economlc
opporLunlLles for agrlculLural workers wlLh lower Lhan average lncomes and schoollng, a slgnlflcanL
pro-poor lnlLlaLlve.
122
A moblle remlLLance servlce LhaL furLher leveraged Lhe developmenLal lmpacLs
of remlLLances from 1onga's economlc mlgranLs would cerLalnly complemenL Lhese and oLher pollcy
lnlLlaLlves.

7. Conc|us|on

1hls reporL has showed LhaL Lhe lndlvlduals - Lhe consumers - of remlLLances and flnanclal servlces
ln 1onga exhlblL many of Lhe same characLerlsLlcs as lndlvlduals ln Lhe hlllpplnes, Lhe slLe of Lwo
separaLe successful and susLalnable moblle money servlces. Powever, Lhe comparaLlve analysls ln
Lhls reporL revealed lmporLanL gaps beLween Lhe Lwo naLlons ln Lerms of commerclal vlablllLy and
poLenLlally successful buslness models. ln addlLlon, lmporLanL pollcy reform would need Lo Lake
place before a moblle remlLLance or moblle money servlce could sLarL up. A key lssue for 1onga wlll
remaln Lhe capaclLy of Lhe CovernmenL Lo lmplemenL reform and hence co-operaLlon wlLh exLernal
developmenL parLners and Lhe prlvaLe secLor wlll be essenLlal Lo any pollcy developmenLs.


121
World 8ank, 2009.
122
Clbson, Mckenzle & 8ohorua, 2008: 187-188.
"%
WhllsL Lhls reporL has aLLempLed Lo be as comprehenslve as posslble, lL could noL cover all aspecLs of
Lhe Loplc area. ln addlLlon, Lhere were consLralnLs resulLlng from a lack of Llme and resources. A
ma[or consLralnL revolved around access Lo lnformaLlon, parLlcularly commerclal lnformaLlon LhaL ls
noL easlly accesslble Lo Lhe publlc. 1hls was ldenLlfled early ln Lhe research and subsequenLly helped
shape Lhe dlrecLlon of Lhe flnal reporL Lo be focused more on Lhe conLexLual seLLlngs of moblle
remlLLances ln Lhe hlllpplnes and 1onga and less on a rlgorous flnanclal analysls of Lhe commerclal
opporLunlLles for moblle remlLLances.

1oplcs LhaL Lhls reporL excluded, whlch are however sLlll lmporLanL ln assesslng Lhe poLenLlal for
moblle remlLLances lnclude:

! An analysls of moblle money ecosysLems - LhaL ls, Lhe agenLs and neLworks used Lo
dlsLrlbuLe moblle money producLs, and ln parLlcular, Lhe lncenLlves glven Lo agenLs Lo parLlclpaLe ln
Lhese neLworks. Much has been wrlLLen on Lhls sub[ecL by CCA and Lhe CSM AssoclaLlon, lncludlng
mosL recenLly a comprehenslve reporL on moblle money ln Lhe hlllpplnes by aul Lelshman.
123


! An examlnaLlon of Lhe +!"<$#.#(7 used ln moblle remlLLance sysLems. An example of such
research ls krugel (2007), whlch gave a deLalled accounL of Lechnology opLlons for moblle banklng. ln
parLlcular, llnklng Lhese Lechnologlcal opLlons Lo Lhe speclflc soclal, culLural, geographlc and
economlc conLexL of 1onga and Lhe aclflc would be helpful ln deLermlnlng Lhe sulLablllLy of such
sysLems ln 1onga. Lxamples of lmporLanL Lechnologlcal lssues noL covered ln Lhls reporL lnclude Lhe
sharlng of moblle phones amongsL mulLlple users and Lhe feaslblllLy of furLher expandlng moblle
coverage Lo remoLe lslands.
124


! A dlscusslon of Lhe rlsks assoclaLed wlLh moblle remlLLance and moblle money sysLems (see
McMurray (2009) for a comprehenslve deLalllng of rlsks).

ln addlLlon, Lhls reporL has ldenLlfled areas of sLudy LhaL are ln need of furLher research ln order Lo
more fully assess Lhe poLenLlal for moblle remlLLance servlces ln 1onga:

! 1o draw a more preclse comparlson wlLh Lhe hlllpplnes, a researcher would need Lo more
rlgorously examlne Lhe buslness case for moblle remlLLances. 1o do Lhls, would requlre access Lo
deLalled lnformaLlon around cusLomer numbers, cosLs and proflLablllLy of boLh SmarL and Clobe.

! lurLher work on assesslng Lhe demand for flnanclal servlces ln 1onga ls necessary. 8rueLL &
llrpo's recenL reporL on moblle money ln nC ls a good example of on Lhe ground research
comblned wlLh a conLexLual examlnaLlon of Lhe sulLablllLy of Lhe markeL for moblle money. Cn Lhe
ground surveys would allow us Lo galn a clearer undersLandlng of Lhe $!!1, of 1ongan consumers
for new forms of flnanclal servlces.


7a. ollcy 8ecommendaLlons
llnally, Lhls reporL has flve pollcy recommendaLlons LhaL would help Lo faclllLaLe moblle remlLLances
and moblle money ln 1onga.


123
Lelshman, 2009.
124
1he moblle money sysLems ln Lhe hlllpplnes have LradlLlonally been deslgned ln a way noL Lo
faclllLaLe Lhls, where as oLher moblle money deploymenLs, such as Lhe MLSA sysLem ln kenya,
allow mulLlple accounL holders Lo use one phone - an obvlous beneflL where phones are shared
amongsL famlly members and communlLles (Source - lnfouev, 2006).
"&
! lurLher research lnLo Lhe poLenLlal proflLablllLy of moblle remlLLance and/or moblle money
sysLems ln 1onga. 1hls research would need Lo be a buslness focused, flnanclal analysls, carrled ouL
by a mulLllaLeral developmenL agency ln con[uncLlon wlLh Lhe 1ongan governmenL. Several agencles
have experLlse ln Lhls fleld lncludlng Lhe Aslan uevelopmenL 8ank, World 8ank and Lhe unu-led
aclflc llnanclal lncluslon Leam ln Suva, ll[l.

! lnvesLlgaLlon by mulLllaLeral developmenL agencles lnLo Lhe poLenLlal for a aclflc-wlde or
mulLl-counLry moblle remlLLance and/or moblle money sysLem, ln order Lo bulld economles of scale
for a poLenLlal commerclal operaLlon.

! lurLher research lnLo Lhe mosL approprlaLe buslness model Lo be used ln 1onga. 1hls
research would need Lo be a collaboraLlve efforL beLween poLenLlal commerclal operaLors,
sponsorlng mulLllaLeral agencles and Lhe 1ongan governmenL.

! 1he CovernmenL of 1onga Lo work wlLh ma[or ald donors and mulLllaLeral agencles Lo help
esLabllsh an enabllng envlronmenL for moblle remlLLances and moblle money sysLems. Speclflc
pollcy reforms Lo lnvesLlgaLe lnclude:
l. k?C rules around Lhe openlng of bank accounLs.
ll. 8ules (lncludlng prudenLlal regulaLlons) for 3
rd
parLy agenLs conducLlng flnanclal
LransacLlons on behalf of reglsLered flnanclal lnsLlLuLlons.

! 1he CovernmenL of 1onga Lo work wlLh ma[or ald donors and mulLllaLeral lnsLlLuLlons Lo llnk
lnvesLlgaLlons lnLo moblle remlLLances and/or moblle money sysLems wlLh lssues of flnanclal
lncluslon and reglonal labour moblllLy ln order Lo leverage Lhe developmenLal effecLs of lncreaslng
economlc mlgraLlon.
"'
Append|x A: N2-1onga rem|ttance corr|dor data

1able 2: lees for sendlng nZ$200 from nZ Lo 1onga.

Cperator
Iee
(N2D)
1ota|
Cost
(N2D)
(of
N25200)
WesLpac repald Cards (lee lnc card
load & wlLhdrawal fees) 1 3.98 2.99
Melle Mel Langl Money 1ransfer 8 17.91 8.96
World Cash 1ransfers 14 18.2 9.10
lMLx Money 1ransfer 10 18.44 9.22
MoneyCram 12 19.93 9.97
'Lpoklfo'ou Money 1ransfer 8 20.32 10.26
xpressLrac Money 1ransfer 12 23.07 11.34
WesLern unlon 14 23.63 11.82
klwlbank (lnLerneL) 20 24.84 12.42
klwlbank 23 29.71 14.86
AS8 8ank (lasLneL Classlc) 20 31.73 13.88
WesLpac 23 32.12 16.06
AS8 8ank 23 36.43 18.22
AnZ 8ank 0 36.62 18.31
8nZ 23 38.88 19.44
1S8 8ank 23 39.34 19.77
naLlonal 8ank nZ 23 37.04 28.32
Average 16.81 29.66 14.83

Average of top S + Western Un|on 8.67

Average of top S + Western Un|on exc|
Westpac prepa|d card 9.81

All daLa sourced from www.sendmoneypaclflc.org .
uaLa accuraLe as aL uecember 2, 2009.
8!$1%#$!70*"&-&" ls a [olnL AusAld and nZAld pro[ecL, whlch alms Lo help lncrease Lransparency ln
Lhe remlLLance markeLs from AusLralla and new Zealand Lo Lhe aclflc.
SM ls pro[ecL managed by ueveloplng MarkeLs AssoclaLes.

O4#/+ R:OS
8ased ln cenLral London, uMA works wlLhln Lhe lnLernaLlonal developmenL arena as an eLhlcal,
prlvaLe secLor lndusLry leader. uMA works wlLh donor agencles, governmenLs and Lhe wlder
buslness communlLy ln provldlng advlce and managemenL ln lLs Lhree areas of experLlse -
remlLLances, lnvesLmenL programmes and lnLernaLlonal developmenL evenLs. uMA's goal wlLhln Lhe
remlLLances arena ls Lo help encourage ever-greaLer amounLs of funds Lo be remlLLed Lhrough
formal channels aL Lhe lowesL posslble cosL and aL Lhe greaLesL posslble efflclency for Lhe beneflL of
mlgranL communlLles and emerglng markeLs across Lhe globe. uMA also has over Lwo decades of
experlence ln worklng wlLh globally respecLed lndusLry speclallsLs and research analysLs ln devlslng
hlghly acclalmed reporLs, communlcaLlons sLraLegles and evenLs for governmenLs and for Lhe wlder
donor communlLy.
"(
Append|x 8: 1onga I|nanc|a| Stat|st|cs

1able 3: roporLlon of Pouseholds reporLlng each Maln Source of lncome by lsland ulvlslon.
123



Maln source of lncome 1oLal 1ongaLapu vava'u Pa'apal 'Lua nluas
Cash lncome 97.00 96.00 97.00 100.00 99.00 100.00
Wages & sa|ar|es 37.00 63.00 49.00 44.00 40.00 37.00
8emlLLances from
overseas 73.00 78.00 66.00 74.00 72.00 83.00
Sales of own produce 30.00 38.00 67.00 78.00 70.00 88.00
8ank loan 26.00 27.00 22.00 29.00 20.00 31.00
non-cash lncome 100.00 99.00 100.00 100.00 99.00 100.00
Consumpt|on of own
produce 78.00 74.00 84.00 91.00 80.00 88.00
lmpuLed renL 91.00 90.00 94.00 90.00 96.00 78.00
1oLal lncome (cash and
non-cash) 100.00 100.00 100.00 100.00 100.00 100.00



1able 4: Pouseholds recelvlng remlLLances (2006 census survey daLa).
126



ulvlslon
WlLhln of CuLslde of
8oLh
wlLhln of never of
1oLal
1onga 1oLal 1onga 1oLal
and
ouLslde 1oLal 8ecelve 1oLal
only 1onga any
remlLLances
1oLal 880 3 9,267 33 4,212 24 3,103 18 17,462
1ongatapu 393 3 7,108 39 2,314 21 1,936 16 11,971
Vava'u 234 8 1,176 41 830 29 631 22 2,871
na'apa| 128 9 439 33 321 38 264 19 1,372
'Lua 68 8 423 47 270 30 138 13 899
Cngo N|ua 37 16 101 29 77 22 114 33 349

123
1onga ueparLmenL of SLaLlsLlcs, 2009.
126
1onga ueparLmenL of SLaLlsLlcs, 2009a.
")
keferences

Agullar !r, lllomeno A (2007) 'ollLlcal 1ransnaLlonallsm and Lhe SLaLe's 8elncorporaLlon of Cverseas
llllplno's' ln Mlralao, vlrglna A. (ed) TM0.#)&$( +)*$,$*+&#$*. "#%%/$&+&!, &$ +<! 9<&.&00&$!, hlllpplne
MlgraLlon 8esearch neLwork, Cuezon ClLy, pp 137-164
AnZ (2009) 8ural 8anklng AccounL", O/,+)*.&* N U!6 V!*.*$1 >*$W&$( =)#/0 ;#$(*, slLe accessed 1
uecember 2009, avallable aL hLLp://www.anz.com/Longa/en/personal/everyday-banklng/rural-
banklng-accounL/
Au, ?orls A. and kauffman, 8oberL !. (2008) 1he economlcs of moblle paymenLs: undersLandlng
sLakeholder lssues for an emerglng nanclal Lechnology appllcaLlon" T.!"+)#$&" ?#%%!)"! A!,!*)"<
*$1 O00.&"*+&#$,, (7:141-164)
Amln, Shaker lbne (2007) "M-8anklng - 1o 8ank Lhe unbanked", accessed 26 !une 2009,
hLLp://www.frosL.com/prod/servleL/markeL-lnslghL-Lop.pag?docld=98633381

8arendese, !acquellne eL al (2006) "SLudy on lmprovlng Lhe efflclency of worker's remlLLances ln
MedlLerranean counLrles", accessed 22 !une 2009, avallable aL
hLLp://www.lncluslongroup.nl/lndex.php?f=publlcaLlon&p=1

8rown, 8lchard .C and !ohn Connell (2003) 8emlLLances ln Lhe aclflc: An Cvervlew", O,&*$
R!3!.#0%!$+ >*$W 9*"&-&" 8+/17 8!)&!,, accessed 17 november 2009, avallable aL
hLLp://www.adb.org/uocumenLs/8eporLs/8emlLLances-aclflc/defaulL.asp

8rown, 8lchard .C. (2008) 8emlLLances and uevelopmenL ln Lhe aclflc: LffecLs on Puman
uevelopmenL ln ll[l and 1onga", presenLed aL Lhe unlLed naLlons LxperL Croup MeeLlng on
lnLernaLlonal MlgraLlon and uevelopmenL ln Lhe Asla and Lhe aclflc, 8angkok, 1halland, 20-21
SepLember 2008.

8rowne, ChrlsLopher and Mlneshlma, Alko (2007) 8emlLLances ln Lhe aclflc 8eglon" E:L G#)W&$(
9*0!), vol 12: 1-14, accessed 24 !une 2009, avallable aL hLLp://ssrn.com/absLracL=982286

Cellular news (2009) ulglcel launches ln 1onga", ?!../.*) U!6,, accessed 4 november 2009,
avallable aL hLLp://www.cellular-news.com/sLory/31019.php

Chala, AlberLo eL al (2009) Palf Lhe World ls unbanked", L&$*$"&*. O""!,, E$&+&*+3! L)*%&$( U#+!,
accessed 12 november 2009, avallable aL
hLLp://flnanclalaccess.org/slLes/defaulL/flles/11010920Palfunbanked_0.pdf

ClA (2009) 1he World lacLbook - hlllpplnes", ?!$+)*. E$+!..&(!$"! O(!$"7, accessed 8 november
2009, avallable aL hLLps://www.cla.gov/llbrary/publlcaLlons/Lhe-world-facLbook/geos/rp.hLml

ClA (2009a) 1he World lacLbook - 1onga", ?!$+)*. E$+!..&(!$"! O(!$"7, accessed 8 november 2009,
avallable aL hLLps://www.cla.gov/llbrary/publlcaLlons/Lhe-world-facLbook/geos/Ln.hLml

ClLlgroup (2007) "vodafone and ClLlgroup Announce Worldwlde Moblle llnanclal 8emlLLance
venLure", ?&+&()#/0 =.#4*. ;)*$,*"+&#$ 8!)3&"!,, accessed 26 May 2009, avallable aL
hLLp://www.clLl.com/LransacLlonservlces/home/abouL_us/press_room/archlves/2007/2007_0212.[s
p

"*
CCA (2008) Maklng Money 1ransfers work for Mll's" ?#$,/.+*+&3! =)#/0 +# O,,&,+ +<! 9##),
accessed 12 AugusL 2009, avallable aL hLLp://www.cgap.org/

ColebaLch, P.k (2002) ollcy 2
nd
ed" 20!$ X$&3!),&+7 9)!,,, 8ucklngham

ColebaLch, P.k (2006) 1hlnklng abouL pollcy: flndlng Lhe besL way" CovneL lnLernaLlonal
Conference paper, accessed 29 SepLember 2009, avallable aL
hLLp://govneLconference2006.anu.edu.au/papers_eLc/colebaLch.pdf

Conroy, !ohn (2006) Successful Mlcroflnance ln Lhe aclflc: Achlevlng llnanclal lncluslon", 9*"&-&"
E,.*$1, L#)/% 8!")!+*)&*+, accessed 20 november 2009, avallable aL hLLp://www.mlcroflnance-
paslflka.org/publlcaLlons.hLml

Cornford, 8obyn (2001) MlcrocredlL, Mlcroflnance or slmply 'access Lo llnanclal servlces': WhaL do
aclflc people need?", ;<! L#/$1*+&#$ -#) R!3!.#0%!$+ ?#5#0!)*+&#$, accessed 1 november 2009,
avallable aL hLLp://www.devneL.org.nz/conf/apers/cornford.pdf

Cracknell, uavld (2004). LlecLronlc banklng for Lhe poor: panacea, poLenLlal and plLfalls" 8%*..
T$+!)0)&,! R!3!.#0%!$+, (13: 8-24)

ueshpande, 8anl, lsern, !ennlfer and !udlLh van uoorn (2003) "CrafLlng a Money-1ransfers SLraLegy:
Culdance for ro-oor llnanclal Servlce rovlders" , CCA Cccaslonal aper no 10, March 2003,
accessed 29 !une 2009, avallable aL hLLp://www.cgap.org/p/slLe/c/LemplaLe.rc/1.9.2704/

ulglcel (2008) "ulglcel Leams wlLh WesLern unlon Lo expand ulaspora program ln Lhe uS" R&(&"!.
=)#/0 accessed 26 May 2009, avallable aL hLLp://www.dlglcelgroup.com/en/medla-cenLer/press-
releases/achlevemenLs/dlglcel-Leams-wlLh-wesLern-unlon-Lo-expand-dlaspora-program-ln-Lhe-us-

ulglcel (2009) 1opplng up - Cell hones 1onga", R&(&"!. 6!4,&+!, accessed 22 november 2009,
avallable aL hLLp://www.dlglcelLonga.com/en/plans/dlglflex/Lopplng_up

uonner, !onaLhan and 1ellez, Camllo Andres (2008) 'Moblle banklng and economlc developmenL:
llnklng adopLlon, lmpacL, and use', O,&*$ Y#/)$*. #- ?#%%/$&"*+&#$, (18, 4: 318-332)

ullu (2009) ullu 8emlLLances lnformaLlon Llbrary", accessed 2 !une 2009, avallable aL
hLLp://www.moneymove.org/Lngllsh/hLLpdocs/drll0.cfm

CauLam, lvaLury, Lyman, 1lmoLhy 8. and SLaschen SLefan use of AgenLs ln 8ranchless 8anklng for
Lhe oor: 8ewards, 8lsks and 8egulaLlon" ?=O9 L#"/, U#+! CH, CcLober 2006, accessed 12 AugusL
2009, avallable aL hLLp://www.cgap.org/p/slLe/c/pubs/

Clbson, !ohn, 8oe-Clbson, Ceua, 8ohorua, Palahlngano and uavld Mckenzle (2008) "LfflclenL
8emlLLance Servlces for uevelopmenL ln Lhe aclflc", accessed 29 !une 2009, avallable aL
hLLp://www.moneymove.org/Lngllsh/hLLpdocs/drll8esulLs.cfm?LheMode=0&LheSLrlng=aclflc

Clobe (2009) Pow Lo send Ccash", =.#4! ;!.!"#%%/$&"*+&#$,, accessed 22 novermber 2009,
avallable aL
hLLp://web.globe.com.ph/web/gcash/11?p_p_ld=13&p_p_llfecycle=1&p_p_sLaLe=normal

#E
Polden, aul and 8ussell, Chrls (2008) 1ransformlng 1onga: A rlvaLe SecLor AssessmenL" O,&*$
R!3!.#0%!$+ >*$W, accessed 12 AugusL 2009, avallable aL
hLLp://www.adb.org/uocumenLs/8eporLs/SA/1Cn/defaulL.asp

PowleLL, Mlchael and 8amesh, M. (1993) BC.?8%3#D E?F437 E"437%G, Cxford unlverslLy ress, Cxford

l1u (2009) lC1 SLaLlsLlcs uaLabase" E$+!)$*+&#$*. ;!.!"#%%/$&"*+&#$, X$&#$, accessed 17
november 2009, avallable aL hLLp://www.lLu.lnL/l1u-u/lC1L?L/lndlcaLors/lndlcaLors.aspx#

kMC (2007) "Moblle aymenLs ln Asla-aclflc" Z9:= =)#/0, accessed 2 !une 2009, avallable aL
hLLp://www.kpmg.com.au/uefaulL.aspx?1ablu=214&kMCArLlclelLemlu=2799

krugel, Cavln 1roy (2007) "Moblle 8anklng 1echnology CpLlons: An overvlew of Lhe dlfferenL moblle
banklng Lechnology opLlons, and Lhelr lmpacL on Lhe moblle banklng markeL", accessed 23 !une
2009, avallable aL hLLp://216.239.213.7/mmL/downloads/flnmark_mbL_aug_07.pdf

kumar, kablr and Mas, lgnaclo (2009) "8anklng on Moblles: Why, Pow, for Whom?" ?=O9, accessed
22 !une 2009, avallable aL hLLp://www.cgap.org/p/slLe/c/LemplaLe.rc/1.9.4400/

llAu (2009) "llnanclng laclllLy for 8emlLLances" ;<! E$+!)$*+&#$*. L/$1 -#) O()&"/.+/)*.
R!3!.#0%!$+ , accessed 23 May 2009, avallable aL
hLLp://www.lfad.org/ruralflnance/remlLLance/lndex.hLm

lnfouev (2006) "Mlcro-aymenL SysLems: and Lhelr appllcaLlon Lo moblle neLworks", accessed 17
!une 2009, avallable aL
www.lnfodev.org/flles/3014_flle_lnfouev.8eporL_m_Commerce_!anuary.2006.pdf

lsaacs, Leon (2008) 8esearch on MlgranL 8emlLLances and Llnkage Lo 8roader Access Lo llnanclal
Servlces", R!3!.#0&$( :*)W!+, O,,#"&*+!, A!,!*)"<, publlshed May 2008, accessed 1 !une 2009,
avallable aL hLLp://www.moneymove.org/lmages/uocumenLs/ACl1Au2.pdf

lvaLury, CauLam and lgnaclo Mas (2008) "1he Larly Lxperlence wlLh 8ranchless 8anklng" CCA locus
noLes 26, accessed 22 !uly 2009, avallable aL hLLp://www2.cgap.org/p/slLe/c/LemplaLe.rc/1.11.2742/

Lee, Pelen (2004) 'Second generaLlon' 1ongan LransnaLlonallsm: Pope for Lhe luLure?", O,&* 9*"&-&"
[&!60#&$+, (43, 2: 233-234).

Lee, Pelen (2009) aclflc MlgraLlon and 1ransnaLlonallsm: PlsLorlcal erspecLlves" ln Pelen Lee &
SLeve 1upal lrancls (eds) :&()*+&#$ *$1 ;)*$,$*+&#$*.&,%S 9*"&-&" 9!),0!"+&3!,, AusLrallan naLlonal
unlverslLy ress: Canberra.

Luup (2009) Luu and MeLrobank Mlddle LasL arLnershlp Lo 8eneflL 2 Mllllon LxpaLrlaLe llllplnos",
accessed 20 SepLember 2009, avallable aL hLLps://www.luup.com/corporaLe/pressroom-press-luup-
meLrobank.hLml

MaasLrlchL (2009) 8emlLLances, developmenL (local economlc growLh) and poverLy allevlaLlon",
:**,+)&"<+ X$&3!),&+7 A!,!*)"<, accessed 22 !une 2009, avallable aL
hLLp://www.maasLrlchLunlverslLy.nl/web/Schools/MCSoC/ro[ecLages/lSAcademleMlgraLlonuevel
opmenL/8esearch/8emlLLancesuevelopmenLLocalLconomlcCrowLhAndoverLyAllevlaLlon.hLm

#$
Manlego-Lala, 8lzza (2009) A new sLraLegy for moblle banklng ln Lhe hlllpplnes", ?#$,/.+*+&3!
=)#/0 +# O,,&,+ +<! 9##), accessed 23 november 2009, avallable aL
hLLp://Lechnology.cgap.org/2009/11/16/a-new-sLraLegy-for-moblle-banklng-ln-Lhe-phlllpplnes/

Mas, lgnaclo and !lm 8osenburg (2009) "1he 8ole of Moblle CperaLors ln Lxpandlng Access Lo
llnance", accessed 22 !une 2009, avallable aL hLLp://www.cgap.org/p/slLe/c/LemplaLe.rc/1.9.34483/

McMurray, Alalna (2009) Moblle llnanclal Servlces: LxLendlng Lhe 8each of llnanclal Servlces
Lhrough Moblle aymenL SysLems", accessed 23 november 2009, avallable aL
hLLp://www.fdc.org.au/flles/8esources/20nal-Sema/luC-nal-Sema-Cccaslonal-aper-Serles-
CcLober-2009.pdf

Mckenzle, u (2006) "8emlLLances ln Lhe aclflc", Werner Slchel LecLure-Semlnar Serles, unlverslLy of
WesLern Mlchlgan, accessed 24 !une 2009, avallable aL
hLLp://slLeresources.worldbank.org/uLC/8esources/8emlLLances_ln_Lhe_aclflc.pdf

Mellyn, kevln (2003) Workers 8emlLLances as a uevelopmenL 1ool: CpporLunlLy for Lhe
hlllpplnes", O,&*$ R!3!.#0%!$+ >*$W, publlshed 13 !une 2003, accessed 1 AugusL 2009, avallable aL
hLLp://www.adb.org/documenLs/reporLs/consulLanL/worker_remlLLances_phl.pdf

Ml (2009) 1he hlllpplnes CulLure of MlgraLlon", :&()*+&#$ E$-#)%*+&#$ 8#/)"!, accessed 1
uecember 2009, avallable aL hLLp://www.mlgraLlonlnformaLlon.org/uSlocus/dlsplay.cfm?lu=364

'Cfa, Slope v. (2008) 1he LelecommunlcaLlons secLor ln Lhe aclflc: a regulaLory pollcy survey",
9*"&-&" T"#$#%&" >/..!+&$, (23, 3: 69-100).

C'nelll, kevln (2004) Labour LxporL as CovernmenL ollcy: 1he case of Lhe hlllpplnes", :&()*+&#$
9#.&"7 E$,+&+/+!, accessed 1 uecember 2009, avallable aL
hLLp://www.mlgraLlonlnformaLlon.org/uSlocus/dlsplay.cfm?lu=191

aragas, lernando (2009) MlgranL Workers and Moblle hones: 1echnologlcal, 1emporal and
SpaLlal SlmulLanelLy" ln Llng, Seyler 8. and ScoLL W. Campbell (eds) ;<! A!"#$,+)/"+&#$ #- 80*"! *$1
;&%!S :#4&.! ?#%%/$&"*+&#$ 9)*"+&"!, 1ransacLlon ubllshers, new 8runswlck, pp 39-63

lckens, Mark, orLeous, uavld & Sarah 8oLman (2009) Scenarlos for 8ranchless 8anklng ln 2020",
?#$,/.+*+&3! =)#/0 +# O,,&,+ +<! 9##) *$1 RELER, accessed 20 november 2009, avallable aL
hLLp://www.cgap.org/p/slLe/c/LemplaLe.rc/1.9.40399/

orLeous, uavld (2006) "1he Lnabllng LnvlronmenL for Moblle 8anklng ln Afrlca" ueparLmenL for
lnLernaLlonal uevelopmenL 8eporL , accessed 22 !une 2009, avallable aL
hLLp://www.bankablefronLler.com/asseLs/ee.mobll.banklng.reporL.v3.1.pdf

orLeous, uavld (2007) !usL how LransformaLlonal ls m-banklng?", L&$:*)W ;)/,+ N >*$W*4.!
L)#$+&!) O,,#"&*+!,, accessed 22 !une 2009, avallable aL
hLLp://www.flnscope.co.za/documenLs/2007/LransformaLlonal_mbanklng.pdf

8aLha, ulllp and 8ledburg, !an (2003) Cn reduclng remlLLance cosLs" G#).1 >*$W, publlshed May 10
2003, accessed 9 SepLember 2009, avallable aL
hLLp://slLeresources.worldbank.org/ln18CSLC1S/8esources/CnreduclngremlLLancecosLs-
revlsedMay12.pdf

#"
8aLha, ulllp and xu, Zhlmel (2007) 1onga lacL SheeL: MlgraLlon and 8emlLLances lacLbook", G#).1
>*$W, accessed 22 AugusL 2009, avallable aL
www.worldbank.org/prospecLs/mlgraLlonandremlLLances

8aLha, ulllp and xu, Zhlmel (2007a) hlllpplnes lacL SheeL: MlgraLlon and 8emlLLances lacLbook",
G#).1 >*$W, accessed 22 AugusL 2009, avallable aL
www.worldbank.org/prospecLs/mlgraLlonandremlLLances

8osenburg, !lm (2008) "Moblle 8anklng ln Lhe hlllpplnes: lnLervlew wlLh Clobe 1elecom's 8lzza
Manlego-Lala", CCA, accessed 26 !une 2009, avallable aL
hLLp://Lechnology.cgap.org/caLegory/pro[ecLs/phlllpplnes-globe-Lelecom/

Slbley, !onaLhan (2007) llnanclal compeLence as a Lool for poverLy reducLlon: llnanclal llLeracy and
rural banklng ln Lhe aclflc", R!3!.#0%!$+ >/..!+&$, (72: 23-30).

Slbley, !onaLhan (2007a) ConcepLuallslng CrganlsaLlons: 8ulldlng CollaboraLlve neLwork
CrganlsaLlons for uevelopmenL", accessed 12 november 2009, avallable aL
hLLp://slbley[e.com/cllenLs/40330/llle/Slbley8econcepLuallslngCrganlzaLlonsllnal1.pdf

Slngh, Suprlya (2009) Moblle 8emlLLances: ueslgn for llnanclal lncluslon" ln LnCS:
lnLernaLlonallsaLlon, ueslgn and Clobal uevelopmenL, Sprlnger-verlag, 8erlln Peldelberg

SmlLh, Sharon (2004) WhaL Works: SmarL CommunlcaLlons - Lxpandlng neLworks, Lxpandlng
roflLs", G#).1 A!,#/)"!, E$,+&+/+! ?*,! 8+/17, SepLember 2004, accessed 9 SepLember 2009,
avallable aL hLLp://www.lcLregulaLlonLoolklL.org/en/uocumenL.3471.pdf

1oLel (2009) 1onga 1elecommunlcaLlons 8esearch", ;#+!. ;!"<$#.#(7 8#./+&#$,, accessed 13
november 2009, avallable aL hLLp://www.LoLel.com.au/Longa-LelecommunlcaLlons-research.asp.

1uS (2009) Pousehold lncome", ;#$(* R!0*)+%!$+ #- 8+*+&,+&",, accessed 2 november 2009,
avallable aL hLLp://www.spc.lnL/prlsm/counLry/Lo/sLaLs/Surveys/PlLS-new/hhlncome.hLm

unCul (2009) unlLed naLlons Conference on llnanclal lncluslon ln Afrlca", X$&+!1 U*+&#$, ?*0&+*.
R!3!.#0%!$+ L/$1, accessed 1 uecember 2009, avallable aL
hLLp://www.uncdf.org/engllsh/mlcroflnance/dakar_conference/

unu (2008) aclflc llnanclal lncluslon rogramme: !olnL ro[ecL uocumenL", X$&+!1 U*+&#$,
R!3!.#0%!$+ 9)#()*%, accessed 12 november 2009, avallable aL
hLLp://www.uncdf.org/engllsh/mlcroflnance/uploads/pro[ecL/aclflc-ll-u!an08.pdf

unu (2009) Puman uevelopmenL 8eporL: CounLry lacL SheeLs", X$&+!1 U*+&#$, R!3!.#0%!$+
9)#()*%, accessed 22 CcLober 2009, avallable aL
hLLp://hdrsLaLs.undp.org/en/counLrles/counLry_facL_sheeLs/cLy_fs_1Cn.hLml

ure, !ohn (2008) "M-8anklng and M-aymenLs ln Asla aclflc" 18C Ly LLd, released 20 AugusL
2008, accessed 3 !une 2009, avallable aL www.Lrpc.com.hk/bank/presflles/lfc_[akarLa_0808.pdf

WesLern unlon (2009) WesLern unlon - AbouL us", G!,+!)$ X$&#$ G!4,&+!, accessed 3 uecember
2009, avallable aL
hLLp://paclflc.wesLernunlon.com/WuCCMWL8/sLaLlcMld.do?meLhod=load&counLryCode=1C&lang
uageCode=en&pagename=Pomeage
##

World 8ank (2007) Ceneral prlnclples for lnLernaLlonal remlLLance servlces" >*$W -#) E$+!)$*+&#$*.
8!++.!%!$+, N +<! G#).1 >*$W, publlshed !anuary 2007, accessed 6 !une 2009, avallable aL
hLLp://www.bls.org/publ/cpss73.pdf

World 8ank (2008) aymenL SysLems Worldwlde: A SnapshoL" L&$*$"&*. E$-)*,+)/"+/)! 9#.&"7 *$1
A!,!*)"< 8!)&!,, accessed 10 !une 2009, avallable aL hLLp://message.worldbank.org/www-exL-
404.hLml

World 8ank (2009) key uevelopmenL uaLa & SLaLlsLlcs", G#).1 >*$W =)#/0, accessed 1 uecember
2009, avallable aL
hLLp://web.worldbank.org/W8Sl1L/Lx1L8nAL/uA1AS1A1lS1lCS/0,,conLenLMuk:20333283~menuk:
1192694~pagek:64133130~plk:64133173~LheSlLek:239419,00.hLml

World 8ank (2009a) 8emlLLance rlces Worldwlde", G#).1 >*$W =)#/0, accessed 1 CcLober 2009,
avallable aL hLLp://remlLLanceprlces.worldbank.org/