Special Feature

Exchange Houses in the UAE:Technologically AdvancedGladson Ronad

One of the unusual characteristicsof the employment world in theUnited Arab Emirates is the high

ratio of expatriate to citizens workingwithin businesses and industries. Thishas given rise to huge amounts of moneybeing repatriated outside the Emirates totheir country of origin. Ever since thecountry was formed under the leadershipof the late President of the UAE andRuler of Abu Dhabi, His Highness SheikhZayed bin Sultan AI Nahyan, exchange

• houses have thrived on this factor, mak-ing it probably one of the few countries inthe world that has such a huge number ofexchange companies within its borders.

Leaders in the money transfer busi-ness worldwide (the global money trans-fer market is estimated at US$150 billion)like Western Union, Moneygram,Travelex and UAE's own product XpressMoney, all have a regional base in theUAE, only because the sheer numbersdictate it. Take for example a leadingexchange company in Abu Dhabi thatannually remits over Rs 5000 crores ayear only to India. Even if the specialistmoney transfer agents garner 15 per centof that business, the figures prove thatthe exchange industry is up and on therise.

"We are reputed for our money trans-fer from 'anywhere in the world to any-where in the world' in just a few min-utes," said Katta Prasad, MarketingManager, Middle East, Pakistan &Afghanistan, Western Union FSI, Dubai. AFirst Data Company, Western Union is

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Heavy duty servers (above) are a common part ofan exchange's IT infrastructure. Customer satisfac-tion is the key to the success of an organisationand exchange houses constantly innovate toimprove relationships with customers

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If there is one thing thatcustomers want from exchangehouses, it is trust! Andexchange companies are notjust about money exchange,but money transfer and cus-tomer service as well.Advancements in technologyhas increased the speed oftransactions and has left cus-tomers completely satisfied.UAE exchange houses are nowIT savvy and customer savvy -both essentials in the long runto success. And, while thereare over 200 exchangecompanies in the UAE, it isonly a handful that share themajority of the business.

US$l00cdepend' __amount s ==next 12 -- --ability.has cabeen a

etis "'rasad. Marketing Manager. Middle East.:::" :a- & Afghanistan. Western Union FSI: we=;: reoctea 'or our money transfer from any-

_ e r: e world to anywhere in the world ina -<1\\ ,.,., runes

-=-- = , .ears. In India itself the company8' ""000 locations and within the

Issue 12.4

service. Travelex' s Cash Passport cardsare already being offered to customersthrough exchange houses that are quitepopular with those whose wards arestudying abroad. The cards are likeinstant cash, as one just has to load thecards at the exchange and instantly thebeneficiary who has a similar card canwithdraw the money from any of the750,000 Visa ATMs worldwide.

When Asgar Patel first came toDubai, it wasn't with the intention to set-tle down. But the construction boom inthe seventies and eighties saw a hugeinflux of expatriates, especially from theIndian Sub-Continent. As the only methodof sending money home was throughhawala most expatriates, especially thelower and middle income group, pre-ferred to use the newly setup exchangehouses. Wall Street Exchange Centre LLCwas among the first few companies inthe UAE to set shop. Literally they were asmall shop that was kept non-sophisticat-ed in order to ensure that the workersdidn't feel too intimidated. Patel hasalways kept his ear to the ground, lookingat every situation in a practical way andformulating marketing strategies that aresound and workable.

"Today, especially after 9/11, withsecurity being a major issue, the compli-ance issue has become so stringent thatall exchange houses are evolving tobecome IT savvy," said Asgar Patel,Chairman, House of Patels of which WallStreet Exchange is a part. The exchangeand its affiliates world-wide are one ofthe leaders in Foreign Exchange andFinancial Services in the global marketplace. Their mission is to strive towardsexcellence in Foreign Exchange andFinancial Services to ethnic and localclientele from Asia and the Middle Eastoffering a sophisticated and high-techlevel of services in terms of quality. "To

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Asgar Patel, Chairman, House of Patels: allexchange houses are evolving to become IT savvy

share our expertise in the under-devel-oped and devefoping markets buildingupon our infrastructure to promote theimpetus to the development of suchFinancial Services is one of our key mot-tos." remarked Patel.

The company has now mastered theart of offering clients from different walksof life and different places of the world asophisticated and high-tech level, yet per-sonalized service. Exchange and transfershave never been made so simple, highlyaccurate, efficient and swift due to itsheavy and custom made investment in IT.

"The eighties were so different frompresent times," remarked Patel. He remi-nisces how only the British andEuropeans used banks to transfer money.By and large, it was the Asian populationthat depended on exchange houses.SWIFT (Society for Worldwide InterbankFinancial Telecommunicationsl, Fax andTelex were the major modes of transfer,and Indian banks were generally tough onrules because of its closed-door econo-my. Wall Street became a bank notecompany then catering to the expatriates'needs of exchanging money. Patel citeshis clear and transparent policy as one ofthe reasons of his success. It was in1986 that he computerized his exchangeand today has over 25 dedicated staff inIT that develops in-house all programsand applications necessary for thesmooth flow of data, currencies and infor-mation. In fact a full-fledged disasterrecovery unit is always ready in case the

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main terminals crash. None of the infor-mation is lost, down to the last minute oftransaction as everything is backed up.The entire system is built for high securi-ty with firewalls and a centralised EDPoperations for all the branches

Using IBM AS-400 servers, thefastest and the most reliable machines,Wall Street's confidence in its software iscomplete. "It is not a small business noris it an easy business," said Patel. Online24/7 the system is planned for continu-ous growth. "We are the market mak-ers," said S. Chandramouli, OperationsManager, Wall Street Exchange CentreLLC. "Customers scout around and seewhat rates are offered and then come toWall Street Exchange finally." The officein New York adds to the benefit of theorganization as the operations are closeto the financial capital of the world,which is the USA. The company isnow focusing on the Far East -Malaysia, Indonesia, etc ratherthan the West as Patel feels thatthere are better opportunities forthem there. Also, the Indian mar-ket is huge though there are chal-lenges like compliance issues foreach transaction. Patel is highlyappreciative of the UAE CentralBank that is progressive, co-opera-tive and forward thinking.

Thomas Cook AI RostamaniExchange Company (TCAR~)whichis celebrating its 25th year of cus-tomer care is part of the AIRostamani Group, a business con-glomerate with net auassets of over US$ 10one billion. TCARE isalso the authorised rep- E-":"7:~'"'"'":"---:=·',~"'...,r.....,.:::-'",resentative of theThomas Cook GroupLtd., one of the oldest It charges, and assistance inand largest Travel and ...~""-'""""....-, opening bank accounts withTravel related service compa- .. correspondent banks. A free Introcardnies in the world. "Thomas f \ is also given when customers open aCook AI Rostamani Exchange ..I. ~~: . '."".~ bank account in India with ourCompany's vision is to become .. assistance."the most preferred brand in the ~~ Birla explained that their frontUnited Arab Emirates for Foreign . office staff are well trained andExchange and Money Transfer ser- understand customers need.vices, " said Khalid AI Rostamani, They proactively update cus-General Manager of TCARE. "To realize tomers on new products available toour vision, we are building a world class meet their needs. It is this extra mile thatcompany," added AI Rostamani. attracts customers to their branches.

TCARE stands apart from its competi- With over 10 branches strategically locat-tion with its value packed customer care ed across the UAE (one at the Dubailoyalty card - IntroCard. Members pay International Airport open 24 hours, 365

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v '.

only Dhs 10 to receive a host of benefitslike free 5th remittance, free auto renew-al on carrying out one minimum remit-tance transaction during the year, freeworldwide accidental death insurancecover of Dhs 20,000 in association withArab Orient Insurance Co. and free dis-counts at leading partner outlets all overUAE.

"Customers appreciate good ser-vice," said Neena Birla, MarketingManager, TCARE. "Products offered bymost exchange companies are quite simi-lar, but the key element is providing morevalue to your customers at the same costor lower costs. Introcard, is a great valueadded card for retail customers. Apartfrom this, we offer value additions in theform of excellent presales and post salesservice, good exchange rates, low

Abdul Wahed AI Rostamani, Managing Director of the AIRostamani Group receiving the Dubai Quality Award 2003from HH Sheikh Mohammed bin Rashid AI Maktoum, CrownPrince of Dubai and UAE Minister of Defence. Also seen inthe picture is c.c. Niyaz Ali, Manager UAE, TCARE

TCARE's IntroCard and Islamic golddinar and silver dirham coins are aunique product offering