June 34, 2004

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SHAPING THE REMITTANCE MARKET BY SHIFTING TO
FORMAL SYSTEMS

• June 3-4, 2004

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Strengthening Formal Channels II Developing
Remittance Specific Products and Services

• By Isabelita T. Manalastas
• Managing Director
• Philippine National Bank-Japan, and
• Regional Head for Asia-Pacific

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Strengthening Formal Channels II Philippine
National Bankin HONGKONG
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HONGKONG
Merchant
Collection
Services
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What is Merchant Collection Services all about?
It revolves around the concept of using
retail stores as collection outlets by
which funds are transferred
electronically from one point to the other.
HONGKONG
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Concept and Features of Merchant Collection
Services
HONGKONG
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Merchant Collection Services Features
It offers convenience through the
accessibility and availability of the retail
stores to the target market in a specific
geographical area.
HONGKONG
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Process Flow
Merchant Collection Services
DAY 1 client transacts with the retail
outlets DAY 2 data file is received by PNB HK
sends it to Overseas Remittance Division (ORD)
for implementation sends it to IT Group for
batch processing DAY 3 cover of the remittance
is received by PNB from Citibank
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Rationale of PNB embracing
Merchant Collection Services

• not enough branches and number
  of tellers to accept remittances during
  Sundays, the day-off of Overseas Filipino Workers
  in Hongkong
• cost issue on expansion.

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Transaction Flow

• client presents remittance card to the cashier
  of the retail outlet
• cashier accepts the remittance transaction
• files are consolidated and sent to Citibank
• Citibank forwards the encrypted file to PNB HK
  checks/validates transactions and sends the file
  to ORD
• forwards the file to IT GROUP for
  processing/crediting to the beneficiaries
  accounts.

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Merchant Collection Services
Remittance Service Plus
RETAIL OUTLETS
ACCEPTS REMITTANCE using this card
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Merchant Collection Services
Remittance Service Plus
RETAIL OUTLETS
DATA FILE
ACCEPTS REMITTANCES
IMPLEMENTS THE TRANSACTIONS BY CREDITING
THE ACCOUNTS OF THE BENEFICIARIES
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Merchant Collection Services
HONGKONG
A new partnership . . . for a
Remittance Service
PLUS
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Strengthening Formal Channels II Philippine
National Bankin JAPAN
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PHILIPPINE NATIONAL BANK IN JAPAN
Opened in May 2003
Full Bank in June 1996
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PHILIPPINE NATIONAL BANK IN JAPAN
Gunma 118 kms
Ibaraki 127 kms
Saitama 30 kms
Tokyo
Chiba 43 kms
Kanagawa 28 kms
30.1 kms.
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PHILIPPINE NATIONAL BANK IN JAPAN
Gunma 118 kms
Ibaraki 127 kms
Saitama 30 kms
Tokyo
Chiba 43 kms
Kanagawa 28 kms
30.1 kms.
Service area limits service to
WALK-IN Clients
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?
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BANK TRANSFER
There are about 24,768 post offices in Japan.
POST OFFICE
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Thru POST OFFICE Method
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There are about 24,768 post offices in Japan.
Thru POST OFFICE
by registered money envelope or "genkin kakitome"
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100 safe
INSURED UP TO JPY500,000 or US4,500
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Controls
Receives Money Envelopes
PROCESS WORKFLOW 1
Validates Cash and Instruction
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PROCESS WORKFLOW 2
Checks Validity of Transactions
Implements
ON-LINE remittance to 1,600 ATM's and online
branches in the Phils.
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Files
Segregates
PROCESS WORKFLOW 3
Mails
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There are 24,768 post offices in Japan.
DAY 1
Thru POST OFFICE
DAY 2
by registered money envelope or "genkin kakitome"
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Thru BANK TRANSFER Method
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Philippine National Bank Tokyo Branch Kamiyacho
Branch Acct. No. 2467369
Remit money to anaccount other thanyour own.
Thru BANK TRANSFER
by domestic money transfer or "ginko furikomi"
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PNB Tokyo Catching Account
Procedure in Ginko Furikomi Implementation
Confirmation
Thru BANK TRANSFER Method
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http//www
Thru BANK TRANSFER Method
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Implementation
Checks Validity of Transactions
PROCESS WORKFLOW 1
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Segregates
ON-LINE remittance to 1,600 ATM's and online
branches in the Phils.
Files
Mails
PROCESS WORKFLOW 2
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Verification of ClientsIdentificationPROCEDURE
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Verification of ClientsIdentification
PROCEDURE
NO
ID VALID?
YES
SCAN
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Verification of ClientsIdentificationPROCEDURE
ID SCANNED
HATTORI, LEONORA L.
038069
Issues PNB Remitter ID
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Resends Returned Mail
NO
RETURNED MAIL?
HATTORI, LEONORA L.
038069
YES
Verification of ClientsIdentificationPROCEDURE
Philippine National Bank, Tokyo Branch 4-1-13
Toranomon, Minato-ku, Tokyo 105-0001
HATTORI, LEONORA L. 4-1-13 MINAMI TOKYO 111-1111
RETURNED MAIL
Contacts Client
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Processing of Over JPY1 Million Transactions
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Processing of Over JPY1 Million Transactions
Contacts Client
NO
ID VALID?
YES
SCAN
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Processing of Over JPY2 Million Transactions
Processing
Posting w/ Supervisor Override
Processing
Posting w/ Supervisor Override
Checking/Approval
Checking/Approval
Reports to
Checklist for Auditor
Checklist for Auditor
and
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Because we care . . . through the years.