Eurogiro removes cost of remittances by redesigning procedures in its community

Copenhagen, Oct. 26, 2010

Already now half of the Eurogiro members use the newly developed multi-lateral business framework to connect to each other in one step, covering everything from the technical connection to the service levels and standard business agreements. This enables Eurogiro, which organises payment specialists among posts, banks and money transmitters, to help the industry meet the goals of the World Bank to reduce payment costs for remitting immigrant workers. With its unrivalled branch network, posts can reach out to the unbanked population like no other financial organisation, and can share the benefits of cost savings directly with the poorest in the world. “It is a great leap forward for our community, and we are happy to support the UN in reducing poverty” says Mr. Tjeerd Rienstra, CEO of Eurogiro.

The cost of a remittance is impacted by the cost of maintaining a large and trustworthy network of receiving institutions. With minimal exchange of information, Eurogiro members can start exchanging payments which are highly standardised and which meet premium security standards via the MultiLateral Framework. Settlement can be done out of one account and, while exceptions are rare (Straight Through Rates around 95%), these are also standardised. The length of time required to open a remittance corridor is decreased with the reduction of repetitive bilateral agreements and bilateral tests. Eurogiro’s MultiLateral Framework now covers more than half of the community, and all regions of the world.  In particular, new members are pleased to find that the task of connection is far easier than is normally the case in correspondent banking.