Description:
This survey was conducted by the World
Bank Payment Systems Development Group, at the request of
the Ministry of Finance of the Czech Republic, as a follow
up to the World Bank-led mission that visited the country in
2008 to assess the market for remittances. This survey aims
at analyzing the main characteristics of the market for
remittances in the Czech Republic and should serve as a
guide for both public authorities and the private sector in
identifying possible actions to improve the efficiency of
the market. A total of 880 migrants from eight different
nationalities were interviewed during the summer of 2009 in
Prague. The nationalities selected represent the largest and
most important migrant communities in the country: China,
Moldova, Mongolia, Poland, the Russian Federation, the
Slovak Republic, Ukraine, and Vietnam. The following main
findings can be extracted from the analysis of the
survey's outcomes: i) a low level of transparency and
consumer protection can be observed in the market for
remittances in the Czech Republic. Senders are often not
provided with all the relevant information by the Remittance
Service Provider (RSP) at the moment of the transaction; ii)
the lack of transparency is confirmed by the analysis of the
cost as perceived by the interviewees, who do not generally
consider the margin applied by the RSP as a price component.
As a result, remittance senders are in general not aware of
the actual cost that they are paying for the service; and
iii) the market is dominated by Money Transfer Operators
(MTOs) and, in particular, some MTOs hold the great majority
of the market shares.