Business Week Recognizes Credit Unions Role in Remittances

Madison, WI—Credit unions were recognized in Business Week Magazine this week for their role as a remittance provider and their effectiveness of reaching out to the unbanked population. The article, Channeling the Remittance Flood, quoted industry expert, Manuel Orozco, executive director of the Remittances & Rural Development project at the Inter-American Dialogue, a think tank based in Washington, D.C. Orozco noted, "Today, fewer than 10% of remittance recipients have bank accounts, largely because traditional banks haven't been interested in small clients. That will change as more remittances are channeled into credit unions and microfinance organizations."

"Credit unions were often started to serve people that lacked financial services, World Council's International Remittance Network (IRnet) opens another door for credit unions to do just that, by providing affordable reliable remittances," noted Tiffany Kultgen, World Council, IRnet Officer. "Credit unions have the opportunity to reach out to the unbanked population and can help both remittance receivers and senders become part of a formal financial institution and receive education on credit and savings products."

Kultgen cited a World Council remittance study conducted in Guatemala that showed 74% of member recipients have been members of their credit union for less than three years (remittances distribution began in 2001) and forty percent of members named remittance services as the primary reason for having joined the credit union.

She continued, "Remittances will continue to play a key role in credit union development. Our goal is to develop remittance linked savings and credit products in developing countries to further build on the success we've already had."

In 2005 credit unions originating or receiving remittances as part of World Council's IRnet program sent over $381.6 million and since the program's inception IRnet remitters have sent $943.6 million.

El Consejo Mundial de Cooperativas de Ahorro y Crédito es la asociación gremial y agencia de desarrollo para el sistema internacional de cooperativas de ahorro y crédito. El Consejo Mundial promueve el crecimiento sustentable de las cooperativas de ahorro y crédito y otras cooperativas financieras en todo el mundo a fin de facultar a las personas para que mejoren su calidad de vida a través del acceso a servicios financieros asequibles y de alta calidad. El Consejo Mundial realiza esfuerzos de defensa activa en representación del sistema global de las cooperativas de ahorro y crédito ante organizaciones internacionales y trabaja con gobiernos nacionales para mejorar la legislación y la regulación. Sus programas de asistencia técnica introducen nuevas herramientas y tecnologías para fortalecer el desempeño financiero de las cooperativas de ahorro y crédito y profundizar su alcance comunitario.

El Consejo Mundial ha implementado 290 programas de asistencia técnica en 71 países. A nivel mundial, 51,000 cooperativas de ahorro y crédito en 100 países atienden a 196 millones de personas. Obtenga más información sobre el impacto global del Consejo Mundial en www.woccu.org.