International Remittance Program
World Council
of Credit Unions (WOCCU), along with its providers, strives to assist
credit unions in reaching emerging markets (i.e., immigrant population) by providing
credit unions with safe and affordable money transfer products and
technologies. By offering high-demand remittance products, credit unions are able to attract and effectively
serve potential members in this evolving financial marketplace.
The combined
expertise of our money transfer partners and WOCCU’s credit union knowledge
results in customized solutions, better service to emerging markets, an
expansive network with convenient points of service, tailored products to
attract new members and the ability to go above and beyond by offering other financial products
and services to attract new members into the financial mainstream.
The program was developed
in response to credit union members and potential members’ demand for money
transfer services and to counter the exorbitant fees being charged to use these
services.
By offering strategic relationships that
provide the best overall value for quality products at more competitive prices
than what your credit union could negotiate individually, your credit union is
well positioned to effectively compete in this vast market with great
potential.
Through WOCCU’s
strategic alliances, credit unions in the United States may provide the international
money transfer product of Vigo Remittance Corporation. In addition, credit unions may offer Vigo’s domestic money transfer product to
potential members that are currently unbanked and therefore can not use typical
wire transfer services.
Credit unions outside of
the United States may offer
the products of MoneyGram, Coinstar Money Transfer
and Vigo.
WOCCU’s
international remittance program is not limited to credit union-to-credit union
transfers. As a result, people have the option
of making a transfer from a credit union to a credit union, from a credit union
to a non-credit union (i.e., retail outlet serving as a money transfer outlet),
or from a non-credit union to a credit union. The current overall network
provides service to countries in Latin America, Asia, Africa, Europe and Australia.
By offering access to
remittance services, credit unions around the world are able to serve unbanked
and underserved populations, providing access to additional financial products
and services, which may ultimately help them improve their lives.
Remittances – A Transactional Financial Service in High Demand
As the foreign-born
population in the United States
continues to rise, so does the need for access to safe and affordable financial
services--including remittances. Over the past few years there has been a
tremendous growth in money transfers, especially to Latin
America and the Caribbean (LAC). According to the Inter-American
Development Bank, remittances totaling $53.6 billion were sent to LAC in 2005
of which over $20 billion went to Mexico alone.
For many countries,
remittances have become a highly dependable source of household income and
often a significant percentage of the country’s Gross National Product. For the
family and friends back home, these funds are vital to help cover the costs of
food, housing, education, new businesses and save for the future. WOCCU’s program provides a safe, rapid and economical
means for credit union members and potential members to send and receive these
funds.
Advantages
Credit unions as
agents/payers: Unlike other remittance providers operating out of
convenience stores or check cashing outlets, credit unions offer core
financial services such as savings and checking accounts, loans,
educational seminars, etc., in addition to remittances. Credit unions in
the United States
are also regulated and insured financial institutions.
Lower fees and
disclosure of exchange rate: For as little as US$10, credit union
members and potential members can send up to US$1,000 to Mexico. Senders
are guaranteed the rate of exchange and informed of the amount the
beneficiary will receive at the time of the transfer.
No fee to the beneficiary: The beneficiary abroad will not be charged any fee for receiving transfers.
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