Financial Institutions and the Remittances Market in the Dominican Republic, November 2004
Recommendations for the Government of the Dominican Republic
- Integrate remittances explicitly into existing government efforts to modernize the financial system and to build better relations with the Dominican diaspora.
- Build transparency in the remittances market.
- Open negotiations to develop a Central Bank Automated Clearinghouse (ACH) system with the US Federal Reserve.
- Improve access to financial literacy and basic technology training.
- Improve data sources, methods of collection and public access to data.
- Systematically analyze the impact of remittances in the Dominican economy and society.
- Improve the regulatory and financial sector framework by being responsive to the needs of the industry.
Recommendations for Financial Institutions in the Dominican Republic
- Seek to benefit remittance senders and recipients directly through existing value-added financial services.
- Sponsor incentives and financial education programs to encourage financial responsibility and empowerment, as well as adoption of technology based services.
- Community-based financial institutions should consider the broadest possible range of partnerships for customer acquisition.
Recommendations for the State and Federal Public Sector in the United States
- Improve the monitoring of money transmitters for transparency and consumer protection.
- Promote a more open and inclusive dialogue with the money transmitters industry in the United States.
- Encourage public financial entities, such as the Federal Reserve and the FDIC, to expand financial empowerment initiatives for immigrants.
- Involve all stakeholders in the pursuit of more - and more transparent - competition in the remittance market.
Recommendations for Overseas Development Assistance Agencies
- Promote projects that integrate education, marketing and information technology adoption into remittance-related activities.
- Support customer acquisition and distribution of remittances, as well as product development, as a profit center for non-traditional financial institutions in receiving countries.
- Explore financial access among the poorest in the Dominican Republic and the capacity of the national payments system in domestic transfers.