Expanding Global Financial Inclusion Through Government to Person Payments and Emergency Cash Transfers

11 May 2011

İstanbulSeminar & Workshop

“Expanding Global Financial Inclusion through Government to Person (G2P) Payments and Emergency Cash Transfers"

Venue:
UNDP Istanbul International Center on the Private Sector and Development 
Eminönü Yalıköşkü Caddesi 16, 34112  Eminonu Istanbul, Turkey

Pickup for participants  at the LDC Conference Venue  Istanbul Congress  Center  at  10 AM
                                         
May 11, 2011 | 11am-130pm (followed by lunch at the Orient Express Restaurant  –RSVP required-)

Event Partners : United Nations Development Programme (UNDP), United Nations Capital Development Fund (UNCDF), Visa, Vodafone ,Turkish International Cooperation and Development Agency (TIKA) , State Planning Organization (SPO)

Agenda

11:05-11:110 | Welcome by Shahid Najam, UN Resident Coordinator and UNDP Resident Representative in Turkey

11:10-11:20 | Opening Keynote Remarks by Kori Udovicki,  Director of Bureau for Europe and the Commonwealth of Independent States and Assistant Secretary General , United Nations Development Programme

11:20-11:40 | Presentation of  Growing Inclusive Markets Primer on Government to Person Payments and Emergency Cash Transfers  by Sahba Sobhani, Interim Director, UNDP Istanbul International Center on the Private Sector in Development

11:40-13:10pm | Global Showcase of Programmes and Role of Governments and International Organizations

Moderator: Balázs Horváth, Poverty Reduction Practice Leader, UNDP Bratislava Regional Center

1. Presentation  by David  Morrison, UNCDF Executive Director of recent advances in linking government payments, private sector institutions and improved development outcomes for the poor and presentation on Fiji/Pacific Inclusion Programme (15 mn)

2. Presentation by Thomas Debass , US State Department for Director  for Global Partnerships,    on  HIFIVE and the Gates/USAID challenge fund  in spurring financial inclusion in an emergency context in Haiti (15 mn)

Coffee Break: 10 mn

3. Presentation by Yusuf Yuksel, Head of Income Distribution & Social Inclusion Dept.  State Planning Organization Turkish Gov.  on Social Solidarity Program of Turkey ( 10 mn)

4. Presentation by Prof. Dr. Julide Yildirim Ocal, Gazi University on Conditional Cash Transfer Programs in Turkey (10 min)

5. Presentation by  Omer Kuyucu, Head of Unit  at Vodafone on  its experience in mobile banking in  Africa and the Pacific, emergency cash transfer in Kenya  and the potential for G2P  (10  mn)

6. Q & A (20 mn)

13:10-13:15 | Wrap-up  by Henry Jackelen , Director , Private Sector Division, UNDP

13:15:13:30 | Closing Remarks by His Excellency Ambassador  Ertuğrul Apakan ,  Permanent Representative of the Turkish Government at the United Nations

13:30-2:30pm | Lunch at the Orient Express Restaurant (RSVP required)  at Sirkeci Station,   essential stop for fans of the Orient Express and Agatha Christie

Rationale

Traditional methods of paying salaries, pensions, welfare benefits and emergency income support to name just a few government payments usually involves a lengthy paperwork trail, weeks of processing, insecurity in delivering cash or checks to remote and unsafe areas, and delays and corruption in the process. Recent innovations in technology enabling the poor to be identified easily, hold accounts cheaply, transact electronically and move money quickly allow for greater financial inclusion of the poorest, and improved profitability for financial institutions and telecommunications companies working at the bottom of the pyramid. These advances hold special promise for the field of emergencies as evidenced by recent successes in Haiti and elsewhere.

Today, according to CGAP, more than 170 million people around the world receive regular payments from their government(G2P payments)  but less than 25% do so in a manner that enables them to store funds, send or receive money and access their funds in a cost and time-efficient manner. Looked at another way, today less than 25% receive regular government payments through a financial institution. The potential for the private sector to act as cost-efficient and more effective intermediaries in this business while building new markets and customers is considerable.

Corporations from around the world have already begun to discover:

 Enrolling untapped markets: the promise of greater volumes (through enrolling a larger long-term focused customer base from the ranks of the poor). For example, globally, the number of mobile banking users is expected to surge more than sixteen fold, to 894 million by 2015 from 55 million in 2009, according to Berg Insight, an industry research firm based in Stockholm.

 Lowering transaction costs: Cheaper transaction costs (through the advent of mobile technology and electronic transfers using not only mobile money, but also prepaid debit cards and institutional bank accounts). In Brazil, the cost of administering Bolsa Família grants was cut from 14.7 percent to 2.5 percent of the value of the grant dispersed. In South Africa, the costs of delivering social security fell 62 percent after the government partnered with private banks.

 Servicing recurring cash flows: Recurring cash injections (through government payments into the ‘accounts’ of the poor, whether these are institutional accounts, debit cards, mobile money or some hybrid form) allow for increased profitability. These innovations have improved the long-term profitability dynamics for relevant businesses, while contributing to the public good of financial inclusion at the bottom of the pyramid.

Logistical information

Maximum number of participants:
100

Type of registration: Open invitation

Contact

Tugba Yildirim Basaran  
E-mail: t.yildirim@tika.gov.tr

Sahba Sobhani

E-mail: sahba.sobhani@undp.org

Tel: +90-212-512-5853