SEC Form 20-IS - iRemit Global Remittance

Plan of Operation
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
1
Annex “A”
The Company’s strategy is anchored on expansion and gaining a larger share of the inward remittances of
overseas Filipino workers (OFWs) and tapping the potential of other international remittance corridors. The
Company aims to identify and tap a wider customer base in each of the countries where it operates through
focused marketing efforts and expansion of distribution reach and capabilities by opening new offices, or
engaging new agents and tie-ups.
The Financial Services Authority (FSA) of the United Kingdom has authorized the Company’s wholly-owned
subsidiary, IRemit Global Remittance Limited (IGRL), to operate the money remittance business effective April
15, 2011 under the Payment Services Regulations 2009, the transposition into English law of the European
Union (EU) Payment Services Directive (2007/64/EC). As an authorized payment institution, IGRL may
provide payment services including money remittance in all EU and European Economic Area states through
“passporting” by establishing branches, engaging agents, or providing cross-border services. Currently, it has
four (4) branches: two (2) in the United Kingdom and two (2) in Italy (Rome and Milan). It also has 25 agents:
23 in the United Kingdom, one (1) in Austria and one (1) in Germany. It currently has “passporting” rights in
Italy, Austria, Ireland, and Germany. The Company intends to utilize the “passporting” rights of IGRL in
opening additional branches and engaging more agents in Europe.
I-Remit’s wholly-owned subsidiary, K.K. I-Remit Japan has been registered as a funds transfer company in
accordance with the Payment Services Act of Japan. It has an office in Tokyo and has authorization to open
in Nagoya. These offices will offer remittance services to Filipinos. The Company is considering expanding its
services in the country by opening additional branches that will also offer money transfer services to workers
of other nationalities in Japan.
I-Remit has been in partnership with the Bank of China since 2008 to service the remittance needs primarily of
expatriate Chinese, initially in Italy, the United Kingdom, and Canada. The Company intends to extend its
services to expatriate Chinese in Japan.
Recently, the Company signed an agreement with Bank Internasional Indonesia, a unit of Malaysian Banking
Berhad, in line with its bid to reach out to the non-Filipino remittance market. This partnership between I-Remit
and one of the largest banks in Indonesia will enable the Company to reach overseas Indonesians and their
beneficiaries across the country of more than 17,500 islands through the bank’s 368 branches and more than
1,190 automated teller machines. Both the Philippines and Indonesia have large populations of overseas
workers and expatriates. They are also among the world’s biggest recipients of remittance inflows, with the
Philippines receiving USD 21.3 billion and Indonesia USD 7.1 billion, according to the 2010 Migration and
Remittances Factbook of the World Bank.
I-Remit utilize the potential of the offices of its subsidiaries and affiliates abroad to tap other international
remittance corridors and provide its services to customers of various nationalities that need to send money
back to their home countries.
The Company provides world-class remittance services at very competitive prices. It provides the widest
choices of remittance modes to its customers. Presently, it is strong in the bank-to-bank transactions that
credit remittances to any bank of choice in the Philippines. The Company also utilizes various technological
platforms and establishes strategic partnerships with banks and other financial institutions, making it possible
for online and same-day crediting of accounts or delivery of remittances.
iDol or I-Remit Direct Online was initially introduced to the Company’s customers in Canada. This facility
allows remitters to avail of the Company’s remittance services through the Internet. iDOL allows the Company
to reach out to a wider base of customers particularly in countries with large territorial areas. The facility is
also scheduled to be introduced to remittance customers in the United Kingdom, Australia, Singapore, Japan,
New Zealand, Hong Kong, Italy, Austria, and Taiwan.