Tonga Development Bank (TDB) was established in 1977 on a remote island in the Pacific that relies heavily on Tongans living and working overseas. A large amount of these workers reside in New Zealand and Australia. Remittance accounts for more than 40% of the entire countries GDP (Gross domestic product).
TDB and the International Finance Corporation (IFC)* partnered with Cymonz to save money and time for migrant workers and Tongan nationals living abroad when sending funds home to Tonga.
(WU 18% - Banks 10%ish, World Bank Target 7%, TDB / Ave Pa'anga Pau 4.5% - 5%)
Tonga Development Banks cashless remittance platform powered by Cymonz launched in New Zealand. The Ave Pa’anga Pau, a digital remittance product powered by Cymonz launches in Australia.
* part of the World Bank Group to improve financial systems.
Not only were Tongan migrant workers faced with lengthy-time delays when sending money to family in Tonga, but Banks and Money Services Businesses were also charging remitters between 10 and 20% per transaction.
IFC and TDB worked with Cymonz to implement their newly optimised international payments platform. As part of this new initiative, the Ave Pa’Anga Pau Voucher was formed. The Tonga Development Bank now has a cashless remittance platform that allows fellow remitters working in countries such and New Zealand or Australia an extremely cost-effective option of sending money back home.
It uses Cymonz technology and banking mechanisms to provide a cashless platform, with no fees, competitive FX rates and an Anti Money Laundering and Combating Financing and Terrorism compliant module that delivers same-day transfers to Tonga.
Below is a list of some of the technical solutions Cymonz was able to provide TDB.
Full customer self-service platform, from registration through to the transfer of money through a secure, easy to use and fast application.
Full compliance module including knowing your customer, anti-money laundering, pep and sanction screening and transaction monitoring.
Payment application for real-time receipt of payments, reconciliation and release of beneficiary payments.
Sales application to assist customers in processing transactions and transaction-related queries. Management and profit reporting with GL exports.
Cymonz has been able to create a fantastic outcome for Tonga as a County and Tonga Development Bank.
They were able to launch quickly and focus on promoting the platform to overseas Tongan migrant workers that had New Zealand and Australian Bank Accounts.
At the time of writing, around 5,000 transactions take place on the platform monthly and we predict this number to be ever-growing.
Each transaction means savings for Tonga, savings for the customer, and new revenue streams for Tonga Development Bank.
The amount saved per transaction for a remitter is between 10 to 15%, compared to sending money through traditional methods such as Banks and Money Services Businesses (MSB’S).
The remittance platform has also allowed local importers to be able to receive better pricing from the Bank.
As a result, Tonga Development Bank and Ave Pa’anga Pau have been able to successfully increase the GDP of Tonga with more than a quarter of the country’s GDP coming from remittances.