Access Bank’s Proposition for Outbound Money Transfer

By Obinna Chima

Africa has over 30 million people in the diaspora. Therefore, remittance flows to and within Africa has remained on the increase.
  A recent World Bank study showed that remittances by international migrants from developing countries would witness strong growth this year.
In its issue of Migration and Development Brief, the World Bank noted that officially recorded remittances to developing countries are expected to reach $435 billion this year, an increase of five per cent over 2013.
Remittances to developing countries, the report further pointed out, would continue climbing in the medium term, reaching an estimated $454 billion in 2015. Global remittances, including those to high-income countries, are estimated at $582 billion this year, rising to $608 billion next year.
Remittance flows are expected to grow robustly to almost all regions of the developing world, except Europe and Central Asia, where the conflict in Ukraine and associated sanctions are contributing to an economic slowdown in Russia, home to a large number of migrants from the region.

The mobility of Nigerians has been followed by the sending of regular amounts of money.
Nevertheless, when compared with other regions, money transfers to Africa are among the most problematic, according to the International Fund for Agricultural Development (IFAD).
Consequently, transfer costs are higher and remittance senders obtain less value for their money.
Nonetheless, the recent launch of outbound international money transfer service in the country by the Central Bank of Nigeria (CBN) has continued to receive a lot of attention as it is expected to address some of these challenges.

In addition, the partnership between Access Bank and MoneyGram to offer this service to customers of the bank is also expected to ease the burden of outbound money transfer by customers of the bank.
The newly-launched MoneyGram outbound money transfer service, marketed as “Naija Sends”, allows Nigerians to send their naira abroad through any Access Bank branch and platform in Nigeria while the funds are received in the currency of the receiving country.
Outbound money transfer is person to person international money transfer from Nigeria to countries around the world, whether it is a gift to friends or family living abroad or much needed funds for a travelling child.
The central bank last week increased the maximum value for outbound international money transfer services from $2,000 per transaction to $5,000 per transaction.

The regulator in a recent circular with “the allowable limit for the outbound international money transfer of $2,000 per transaction has been increased to $5,000 or its equivalent per transaction.”
Furthermore, part of the guidelines for the service states that no person or institution shall operate international money transfer services unless such person/institution has been duly licensed by the CBN.
It also noted that a financial product involving international money transfer that is not duly registered with the CBN is illegal.
“An indigenous money transfer services operator (MTSO) who provides regional and/or global money transfer service and who wishes to engage a foreign technical partner shall obtain the prior approval of the CBN,” it added.
 

Furthermore, the banking sector regulator pointed out that a technical partner must be a registered entity, licensed in its home country to carry on international money transfer services, have a minimum net worth of $10 million, as contained in its current audited financial statement, or as may be determined by the CBN from time to time; should be well established in money transfer services with a verifiable track record or operations among others.

“Deposit Money Banks (DMBs) are prohibited from operating as international money transfer service operators, but can act as agents except with express approval of the CBN.
“The provision of Bank and Other Financial Institutions Act (BOFIA) on the prohibition of employment of certain persons in banks shall also apply to international money transfer services operators.
“In line with the BOFIA, all the conditions stipulating the exclusion of certain individuals from the management of banks shall apply to the management of international money transfer services providers,” CBN added.

Access Bank/MoneyGram Partnership
 

To the Executive Director in charge of Personal Bank, Access Bank, Mr. Victor Etuokwu, with the service, the bank would be offering its customers seamless money transfer operations.

“What we promise our customers is speed, service and security. This means that we would offer them this service in a manner that is expeditious, quick, with minimal, but legal documentation; the service would be prompt and done in an environment that is secured. In other words, there would be no errors and there would not be fraud,” he said.
Commenting on the decision to raise the threshold, Etuokwu said: “There were some discussions around the limit, that it would be necessary to increase it so that those at the bottom of the pyramid who do this type of trans-border transactions would be able to see this as an enabler for their business.

“If you put the limit so low, you will cut off some micro entrepreneurs. So, it is a welcome development that the regulator is sensitive to some ideas that would grow the economy.”
On his part, Head, Franchise Group, Access Bank, Ola Isola, urged Nigerians, especially customers of the bank to see the platform as an avenue to relate with their loved ones and business partners across the world.
“So, be it payment for a child in school, medical payment, business purchases across the world, this is a safe and secured platform. This is a platform that the people within the bottom of the pyramid are conversant with.

“The charges are competitive when you compare them with the alternative platforms. But we have to always note service because service that is not paid for is not sustainable,” he added.
MoneyGram Regional Manager for Anglophone West Africa, Mrs. Kemi Okusanya said, the launch of “Naija Sends” has further deepened the brands reach and service in Nigeria.
According to her, in the last two decades MoneyGram has facilitated over 15million transactions in Nigeria, enabling safe, convenient and reliable transfer of funds from the Nigerians in Diaspora to their loved ones.

“As Africa’s largest economy, with over 10million migrants, we are glad we are able to offer this service in Nigeria today.
“With this service, Nigerians can now send money to countries like UK and USA from Nigeria. Nigerians can now send money in naira and the person receiving in UK or USA will receive it in pounds or dollars.
“The outbound money transfer service allows Nigerians to send money in naira to over 200 countries around the world by simply working into any Access Bank branch in Nigeria or in other African countries where Access Bank has operations,” she added.

Culled from thisdaylive.com