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financial agents with locations in areas where remittances arrive. 5 TheseMFIs are identifying themselves as players in developing countries, whichin turn can offer new financial products, including electronic cards.The presence of MFIs in money transfers is growing around the world.In Latin America, there may be some 100 MFIs, each with a network offorty paying locales and the capacity to branch out in partnerships withother retailers. These institutions are seeking partnerships with moneytransferorganizations that are low cost and are willing to work on financialservice delivery. The end result is the penetration of a new player in themarketplace of remittance payment that also offers alternative bankingservices. As Table 16 shows, MFIs are offering remittance transfers andsimultaneously seeking to bank individuals through the opening of savingsaccounts, as well as other products, including mortgage loans.Table 15: Transformation Rate of Remittance Transfer Clients into Bank ClientsInstitution New accounts Monthly transfers Conversion rateSalcaja 500 1000 50%Red de la Gente 3500 35000 10%Banco Solidario 4000 5000 80%Fedecaces 4375 22000 20%Guayacan 533 5426 10%Coosadeco 529 4780 11%Acacu 3000 2703 110%Acocomet 800 2383 34%El Comercio 80 800 10%Source: Orozco, M. and E. Hamilton.12. Conclusions and RecommendationsThis paper has explored the various interactions between remittances,migrants, and economic impacts. The effect on development is alsoaddressed within the various lines of analysis. Here we want to address therelationship between remittances and development policy.332The discussion of the development impact of remittances is sometimesobscured by assumptions about development and economic growth thatare not necessarily accurate. For example, for many years some arguedthat remittances needed to have a productive use because consumptionexpenditure was assumed to be detrimental to growth. Regardless, no oneprovided a yardstick by which to measure what proportion of a person’sincome should be productive. There seemed to be an assumption that5See for example the latest issue of the newsletter MIGRANTRemittances, August 2005, 2(2).