Best Practices Guide for Microfinance Institutions Active in Remittances

This guide provides a systematic overview of all dimensions that must be taken into account by MFIs in order to become successful in remittance products. The suggestions made in this guide are based on the experiences of MFIs such as Camide, Pamecas, and Fonkoze. The guide also provides information on remittances products and the various channels through which they can be disseminated by MFIs. It summarizes guidelines for MFIs interested in such products under the following headings:

• Business models and partnerships for remittances – discusses key factors driving business models for remittances;
• Client needs and products linked to remittances – discusses factors that affect the demand for remittance products;
• Marketing and communication of remittance products – covers mistakes, challenges, and the requisites for effective marketing of remittance products;
• MFI operations and remittances – discusses business processes that are impacted by remittances;
• IT systems for remittances – provides suggestions on choosing the appropriate money transfer IT system;
• Regulation of remittances – covers regulations that MFIs should adhere to such as foreign exchange regulation, anti-money-laundering, and know-your-customer rules.