MOROCCO FAST FACTS KEY INSIGHTS DATA DEEP DIVE INDEXES PRICING OPERATORS CONCLUSION

FAST FACTS


VOLUME OF REMITTANCES
USD 6736 million
World Bank, 2020
AVERAGE PRICE OF REMITTANCES TO SEND 200 USD
6%
RemitSCOPE Research, 2020
TOP 5 COUNTRIES

VOLUME OF REMITTANCES
USD 6736 million

World Bank, 2020


AVERAGE PRICE OF REMITTANCES TO SEND 200 USD
6%

Remitscope Research, 2020


TOP 5 COUNTRIES


FINANCIAL INCLUSION
29% of adults have an account at a financial institution, incl. mobile money
FINDEX, 2017
NUMBER OF OPERATORS
sending to:
21
COMPETITIVE MARKET

Remitscope Research, 2021
paying out:
25

Remitscope Research, 2021

FINANCIAL INCLUSION
29% of adults have an account at a financial institution, incl. mobile money

FINDEX, 2017


NUMBER OF OPERATORS
sending to: 21
*COMPETITIVE MARKET

Remitscope Research, 2021

paying out: 25

Remitscope Research, 2021


KEY INSIGHTS

ACCOUNTS AND DIGITAL PAYMENTS

Big rural and gender gaps, but digitization is a national priority

The digitization of the economy and payments is at the core of Morocco’s development strategy and includes a financial inclusion strategy that has been in effect since 2015. With 29% account ownership (17% for women and 41% for men), the government hopes to achieve 47% account ownership through digitization.


Despite a sound regulatory environment and Government willingness, mobile money ownership and retail agents outreach are growing slowly. However, the COVID crisis has accelerated the digitization of payments and financial services distribution, opening avenues to further digitize international remittances.

01

02
DOMESTIC PAYMENT INFRASTRUCTURE

Domestic interoperability is a ‘work-in-progress'

The retail domestic payment system, historically bank-led and card-based, is now interoperable with mobile payments opening an opportunity for Moroccan remittance services aggregators to further digitize their broad-based payment network.


Several aggregators already offer easy entry options into the market. International and domestic remittances terminating to mobile money accounts could leapfrog the activation of mobile money accounts and complement bills and merchant payments use cases while increasing financial inclusion, especially for women.


03
LICENSING & REGULATORY ENVIRONMENT

Clear and open regulations, but agent roles could be streamlined

Morocco’s regulatory environment for remittances provides a clear framework to develop cross-border partnerships and opens avenues to foster digital remittances. A 2016 directive opens up the opportunity for NBFIs to offer payment accounts at different KYC tiers, the lowest only being a national mobile number.


However, the role of Payment Institutions’ retail agents can be streamlined to foster the use of payment accounts through mobile wallets and become a new channel for international remittances. A newly introduced biometric national card could also foster an increase of low-risk accounts.

DATA DEEP DIVE



LINK TO KEY REMITTANCE REGULATION

Morocco has clear and useful regulations that guide their remittances, mobile money and payment systems.

INDEXES





IMPORTANCE OF
REMITTANCES

01
score
1 Senegal 88
6 Zimbabwe 71.5
7 Morocco 70
8 Gambia 69
41 Botswana 13

DIGITAL
READINESS

02
score
1 Kenya 100
26 Madagascar 68
27 Morocco 66
28 Liberia 64
41 Mauritania 12

OPENNESS
TO OPERATE

03
score
1 Kenya 100
10 Mali 75.5
11 Morocco 75
12 Niger 73
30 Zimbabwe 30.5



What do these numbers mean ?



IMPORTANCE OF REMITTANCES


This is a composite score that reflects the size of formal remittance flows to the receive country, how important these are to the country's economy and, (at household level) the proportion that receive money from overseas (including informal). Weights are applied by experts. Scores out of 100.


DIGITAL READINESS


This is a composite score that reflects how ready a country is for international remittances to be terminated directly into digital accounts (including bank account and/or MM). The Index includes whether the regulation permits money to be received into mobile wallets, account ownership, and whether there is domestic MM interoperability. Weights are applied by experts. Scores out of 100.


OPENNESS TO OPERATE


A composite score that reflects where barriers to entry/operate are low for different types of market players. Factors include: lack of specific guidance for RSPs; existence of exclusivity practices; if there is a significant parallel FX market; the numbers of operators sending to a country and international remittance payment aggregators present. Weights are applied by experts. Scores out of 100.



For more information on how the indexes were calculated please download our methodology.


PRICING

AVERAGE COST TO SEND TO MOROCCO IS AROUND GLOBAL AVERAGE

The average cost of sending to Morocco, 6.0% of the send amount, is slightly below the global average of 6.5% but higher than the North African average of 5.7%. Costs will have to be cut in half to reach the SDG 10.c goal of 3% average costs.

AVERAGE COST TO SEND EQUIVALENT OF USD200 BY EU CORRIDORS

Average costs are competitive and below 6% for France, Spain and Belgium. Of the 5 corridors surveyed, Belgium was the cheapest at 4.9% although Spain offers the lowest cost with one operator offering rates as low as 1.6% - including fee and foreign exchange (FX) costs. The most expensive corridor, Netherlands is 6.7% but at least one operator was still sending below the SDG 10.c goal of 3%.

AVERAGE COST BY METHOD TO SEND EQUIVALENT OF USD200 TO MOROCCO

The difference between digital channels and cash channels to Morocco are significant, with a difference between 3.7% and 7.8% respectively. If looking at digital channels alone, Morocco is quite close to the SDG goal of 3.0% with end-to-end digital channels costing 3.7% of the send amount, compared to 7.8% for cash-to-cash methods.

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LIST OF OPERATORS

Operators sending to Morocco (21)

Atena Money Transfert
Azimo
CashMinute
Europhil
La Caixa
Maccorp Exact Change
Money Exchange
MoneyGram
MoneyTrans
Monisnap
PayTop
Remitly
Ria
Small World
Suri-Change
Tempo Money Transfer
Western Union
Wise
WorldRemit
Xendpay
Xoom

Operators Paying Out (25)

Al Barid Bank
Banco Sabadell
Banque Centrale Populaire (BCP)
Banque Marocaine Du Commerce Exterieur (BMCE Bank)
Banque Marocaine Pour Le Commerce Et L’industrie (BMCI)
Banque Populaire De Laayoune
Banque Populaire De Nador-Al Hoceima
Banque Populaire De Rabat-Kenitra
Banque Populaire De Tanger-Tetouan
Banque Populaire Du Centre Sud
Caja De Ahorros Y Pensiones De Barcelona
Cdg Capital; Citibank Maghreb
Credit Agricole Du Maroc (CAM)
Credit Du Maroc
Credit Immobilier Et Hotelier (CIH )
Eurosol Maroc
Fonds D’equipement Communal (F.E.C) Mediafinance
INWI
La Banque Postale
Mea Finances Services
Moneyon Maroc
Orange Money
Societe Generale Marocaine De Banques (SGMB)
Transfert Express
Union Marocaine De Banques (UMB)

FINAL THOUGHTS

RAPIDLY IMPROVING AND MATURING REMITTANCE MARKET

Sending to Morocco is rather affordable and online methods offer a competitive pricing aligned with SDGs. However, the market remains dominated by in-cash remittances and the banking channel is mainly used for savings purposes. Mobile money uptake is slow and represents, along with the development of retail agents, a breakthrough for further cost reduction and access to remittances in rural areas. Remittances coupled with mobile money accounts could also help to reduce the gender financial gap. Financial and digital literacy campaigns are needed to accompany behavior changes and further engage incumbent and new market players.


Morocco is one of the pilot countries chosen for PRIME Africa. As such, a full diagnostic report has been developed and presented to key stakeholders in the country. The diagnostic details all aspects of the remittance market, including key players, stakeholders, and recommendations.