Communications and Remittances. Remittance Numbers in 2004 to Latin America (LAC) Amount Transfered : US$ 45,000,000,000 Individual Transactions: 175,000,000.

Communications and Remittances

Remittance Numbers in 2004 to

Latin America (LAC)

Amount Transfered : US$ 45,000,000,000

Individual Transactions: 175,000,000Senders : 65% X 25M LAC-born 16,250,000Beneficiaries : 100,000,000

Source: IADB/MIFMarch 2005

Mahatma Gandhi’s definition

True Development puts first those that society puts last..

Whenever you are in doubt...Recall the face of the poorest and the weakest person whom you may have seen, and ask yourself if the step you

contemplate is going to be any use to him

Our Project: ALOOO.COM “E-mail for Everyone”

A FREE telephone based e-mail system financed by

advertisements .

A worldwide communication service provider with an innovative business model.

Access NumbersHonduras 800-221-3000Guatemala 1-801-00250000El Salvador (503) 298-0700USA&Canada 1-800-206-0966

Target MarketPeople that do not have, or do not know how to operate a computer and /or the

internet, but need to communicate locally and internationally with friends and

relatives, and have access to a telephone (private or public).

(Most of them, people involved in remittances.)

How Can an “Email Service”

Help Promote REMITTANCES For

Development ?

Psychology of the People involved in Remittances

• SENDER of Remittances. (Pro-Development)

A hard-working , progressive individual , that takes risks for his/her family, wants to buy land / house , save money and more.

• RECEIVER of Remittances. (Pro-Consumption)

A consumer, that uses remittances as “easy money”, after food and other necessities, buys tennis shoes, TV's, appliances, automobiles…

..The challenge ahead is to provide these millions of

hard-working migrants and their families with more options

to use their own money..

They will do the rest.Source: IADB/MIF

March 2005

• Using Alooo.com the sender can ask and receive information about his/her bank account balances and movements. Creating trust and transparency on the use of their bank accounts.

• A globalized “On demand” banking information system, is one of the missing links in the

banking the “unbanked” movement.

Alooo.com Option No.1

Using Alooo.com the sender can provide

instructions on the distribution, or investment of their money. As an example would be instructing the bank to make investments, savings, debt payments, or expenses. (The alternative: make the money transfer companies change their normal procedures in order to include this additional instructions…very unlikely.)

Golden Rule: the money belongs to the sender.

“It is Sender's Money”

Alooo.com Option No. 2

Alooo.com Goals

1. Help Lower the cost of Remittances.

2. Promote the use of Remittances for Development

3. Make Collective Remittances accountable.

4. Bring transnational families closer.

5. E-Inclusion of the transnational families.

6. Support Democracy (pilot in Honduras).

7. Help Deploy Remittance Paying Solutions.

8. Many More.

Brief description of on-going projects

to achieve these

GOALS.

Alooo.com Goals

1. Help Lower the cost of Remittances.

2. Promote the use of Remittances for Development

3. Make Collective Remittances accountable.

4. Bring transnational families closer.

5. E-Inclusion of the transnational families.

6. Support Democracy (pilot in Honduras).

7. Help Deploy Remittance Paying Solutions.

8. Many More.

Remittance Costs (for LAC in 2004) Average Direct Transfer Cost US$ 3.2 B (*1)7% (still high)

Communication Costs LAC US$ 350M(*2)

Procurement andother MGT. costs US$ 4.5 B (*3)

(10%-15% of amount)

Source: (*1)IADB/MIF(*2) 2-3min calls/tran.X $1,00(*3) RDS-HN http://www.rds.org.hn

Remittance Costs (for LAC in 2004) Average Direct Transfer Cost US$ 3.2 B (*1)7% (still high)

Communication Costs LAC US$ 350M(*2)

Procurement andother MGT. costs US$ 4.5 B (*3)

(10%-15% of amount)

Source: (*1)IADB/MIF(*2) 2-3min calls/tran.X $1,00(*3) RDS-HN http://www.rds.org.hn

MIF

Alooo Lower Cost

Our strategic partner in Guatemala

BanRuralBanco de Desarrollo Rural S.A.

Ads say the following:

In Banrural say Thank You

For yourRemittances,Doesn’t costAnything.

In Banrural sayThank You

For your Remittances,Doesn’t costAnything.

BanRural in Guatemala

2 Million customers(12M total population)

$450M paidIn 2004

(22% of $2,681M total)

BanRural in Guatemala

Alooo.comJan. 19th,2003

Alooo.com Goals1. Help Lower the cost of Remittances.

2. Promote the use of Remittances for Development

3. Make Collective Remittances accountable.

4. Bring transnational families closer.

5. E-Inclusion of the transnational families.

6. Support Democracy (pilot in Honduras).

7. Help Deploy Remittance Paying Solutions.

8. Many More.

A “Lay-away” Real Estate Projectthat promotes local savings and investments.

Bienvenido a Tu Casa PaisanoGoals

1. To sell land and houses to citizens living abroad. - Person with NO Savings.- Earns Weekly Wages.

2. Alooo.com is the chosen communication platform for the exchange of information between buyers and sellers.

Bienvenido a Tu Casa Paisano Financing Offer

1. NO Money Down.2. Weekly payment ( From $30- $100 )

(Remittances, Direct Deposit to Bank Account etc.)

3. Interest charge/credit may be applicable to payments.

4. Possession of land/house to be transferred in the future (4-6 years ).

5. Use Alooo.com to register payments and to receive feedback from the bank.

What are We really doing !!

Promoting Savings from migrant

workers into local banks (in origin country),

which implies, MONEY for local

development projects, jobs, and prosperity.

“Remittances for Development”

Alooo.com Goals1. Help Lower the cost of Remittances.

2. Promote the use of Remittances for Development

3. Make Collective Remittances accountable.

4. Bring transnational families closer.

5. E-Inclusion of the transnational families.

6. Support Democracy (pilot in Honduras).

7. Help Deploy Remittance Paying Solutions.

8. Many More.

Collective Remittances ?

Collective remittances is money raised by a group of migrants that

is used to benefit their native community, by funding local

development projects ,like water supply, school restoration etc.

( usually for the benefit of their kids left behind).

Collective Remittances Accountable?

Many Donors, that need to be informedindividually, of the project progress.

Alooo.com’s Group Management Module allows the responsible person to provide the needed feedback, to each and every one of the donors , bringing transparency to the transaction (Outlook “send to group” equivalent).

Alooo.com Goals1. Help Lower the cost of Remittances.

2. Promote the use of Remittances for Development

3. Make Collective Remittances accountable.

4. Bring transnational families closer.

5. E-Inclusion of the transnational families.

6. Support Democracy (pilot in Honduras).

7. Help Deploy Remittance Paying Solutions.

8. Many More.

Project Name: Alooo Video

Using their Alooo.com Account number and Password , transnational family

members can watch FREE of charge, 2 minute videos of their loved ones.

http://www.alooo.com

Here, you select the video to

watch.

Videos will be held for no more

than 60 days.

Alooo.com Goals1. Help Lower the cost of Remittances.

2. Promote the use of Remittances for Development

3. Make Collective Remittances accountable.

4. Bring transnational families closer.

5. E-Inclusion of the transnational families.

6. Support Democracy (pilot in Honduras).

7. Help Deploy Remittance Paying Solutions.

8. Many More.

Democracy and Information

Democracy needs an information platform to inform citizens critical data needed to exercise his/her right to vote.

For example, voters need to know

the location where they will vote.

Democracy and Information(pilot in Honduras)

On February 18th.-20th.,2005 Alooo.com serviced 17,000

(telephone) queries on voters needing the location where they

have to vote. (The number of registered voters in Honduras was 3.8 million , the

response time of a query was less than 5 seconds..)

Alooo.com Goals1. Help Lower the cost of Remittances.

2. Promote the use of Remittances for Development

3. Make Collective Remittances accountable.

4. Bring transnational families closer.

5. E-Inclusion of the transnational families.

6. Support Democracy (pilot in Honduras).

7. Help Deploy Remittance Paying Solutions.

8. Many More.

In order to work with Remittances for Development, Remittances need to exist in our working environment…

Remittance Payments BanRural

Alooo.com has developed a Remittance payment solution

using BanRural extensive network of remittance companies in the USA.

(72+ companies).

This application works based on POS (Point Of Sale) equipment or in the

World Wide Web.

Authentication Process (In Guatemala):

To ID a Person in Guatemala you need : ID Number AND Last Name

To ID a remittance you need:Remittance Number OR First Name

Authentication Process:

• 1. Find Full Name in National ID DB

• 2. Find Full Name in Remittance DB

• 3. Compare Full Names

Full Name:

First Name, Middle Name, First Last Name, Second Last Name

POS Remittance Payments

Payment Option ?1-4

Option 1: ID Number + Last Name + *Remittance Number*

Option 2: Reversion of Process No.1

Option 3: ID Number + Last Name + *First Name*Option 4: Reversion of Process No.2

POS Remittance Payments

BanRural

POS Remittance Payments

Payment Option ?1-4

POS Remittance Payments

ID Number ?

POS Remittance Payments

AlphanumericData !!

POS Remittance Payments

Last Name ?

POS Remittance Payments

Smith

POS Remittance Payments

RemittanceNumber ?

POS Remittance Payments

Data Input

POS Remittance Payments

TelephoneCall

POS Remittance Payments BanRural Avenida La Reforma

Guatemala, Guatemala

Tel . 2361-6260

Date: May 30th., 2005

Time : 10:55:27

Receipt No. : 1234567

Remittance No.: 1234567

First Name : Juan

Middle Name : Luis

First Last Name : Lopez

Second Last Name : Perez

Amount : US$ 220.00

--------------------------

Signature

ONE LAST IDEA for POS..What If ? Partial Payments were processed

The Bank will process the remittance and keep a balance for the unused funds.

1. Banks could charge a commission to the seller of goods and services ( like credit cards).

2. Banks will have funds in process (FLOAT), money with no cost that could be used on development projects, jobs, prosperity.

3. Providers of goods and services will have a new market of customers.

4. Receivers of remittances will have new options to establish credit, shop and pay.

5. Are we “Banking the Unbanked” ?

An Alternative: World Wide Webwith E-link Satellite Conectivity

Some Words of Wisdom

As you ramble on through life, brother,Whatever be your goal,Keep your eye upon the doughnutAnd not upon the hole.

My personal opinion :

The Doughnut is

DEVELOPMENT

Thank YouVery Much