Some 27 million children are not vaccinated against the most common childhood diseases, and Goldman Sachs this year is tapping the power of the capital markets to pay for solving the problem. The bank helped the International Finance Facility for Immunization recently complete its first debt issue, raising $1 billion to fund the immunization and health programs of the GAVI Alliance in 70 of the world's poorest countries. Backed by commitments from the governments of France, Italy, Norway, Spain, Sweden and the United Kingdom, and with the World Bank as its treasury manager, IFFIm has been designed to enable the frontloading of development aid, ensuring that funds pledged over time get to those children who need it faster. IFFIm-raised funds are expected to protect more than 500 million children over the next decade, saving an estimated 10 million lives over time.
New data released from the World Health Organization show that the GAVI Alliance and its partners have brought immunization rates to record levels in these undeveloped countries. WHO data estimates that since 2000, GAVI Alliance-funded immunization programs in developing countries have prevented some 2.3 million deaths, and that immunizations in 2006 alone prevented 600,000 deaths. The group helped distribute established vaccines against diphtheria, tetanus, pertussis, tuberculosis, measles, and polio; introduce under-used vaccines, including those against hepatitis B, Hib and yellow fever; and accelerate development of and access to new vaccines against rotavirus and pneumococcal disease. "IFFIm represents a unique approach to financing for development," notes Alan Gillespie, chair of IFFIm, in a press statement. "This is the first time that bonds are issued to finance a specific objective related to health and immunization. The creation of IFFIm provides investors with an opportunity to participate in the scaling up of a highly successful public-private collaboration focused on saving and improving the lives of the world's youngest and most vulnerable citizens."
Banks trying to decide how much R&D to spend on new banking options might be better served by choosing cellphone banking over online banking. First, mobile banking is poised to grow significantly faster than online banking, with 35 percent of online banking households using mobile banking by 2010, according to a new Celent report. Mobile-banking customers are distinctly different from online-banking clients, it says, noting that by 2010, 10 percent of all contactless payments will be made through a mobile phone. Some 50 percent of the 18- to 25-year-old "Y" generation indicates that mobile financial services are becoming a factor in choosing a bank, with a significant percentage of this demographic living in cell-phone only households by 2012. And by 2010, more than 70 percent of bank-center call volume is expected to come from mobile phones. Moreover, mobile banking will eventually allow users to make payments at the physical point of sale, which will account for 10 percent of the contactless market by 2010.
One of South Korea's largest banks has rolled out a new credit card for Protestant clergy that will provide breaks on Bible purchases and allow ministers to earn bonus points that will eventually morph into church donations. The state-run Industrial Bank of Korea's "I am Pastor" card, introduced in mid-summer, gives clergies the equivalent of a few dollars off when they purchase religious books or other texts at authorized Web sites. The card also gives users discounts on gas and movie-ticket purchases, and allows them to collect points that can eventually be traded in for financial donations to charity. The bank, which admitted it did not expect to earn much profit off the program, expects to release similar cards for Buddhist and Catholic leaders. (c) 2007 U.S. Banker and SourceMedia, Inc. All Rights Reserved. http://www.us-banker.com http://www.sourcemedia.com
