Did you know that your credit union can offer remittances or money transfer services that are different from traditional wire services? Traditional wire services tend to be costly for the member and requires that both the sender and receiver create an account. In addition, it often takes hours, if not days, for the money to be transferred.
"Fringe Financial Service Providers"
With so many Hispanic immigrants in the U.S. maintaining close relationships with family and friends in their native countries, we often seek these services from some of the most convenient places, known as "fringe financial service providers." These providers include small Latino grocery stores (known as tiendas or bodegas), Wal-Mart Money Centers and other local, money-service businesses.
Several Offerings Available
These fringe financial service providers generally offer more than one service, making them more appealing to the consumer. These services vary by region, by the network footprint they have, the types of partnerships they have abroad, delivery methods, and pricing structures. When looking at potential services your credit union might provide, keep in mind that the more options your credit union is able to offer, the better.
Understand Local Community
In order to select the best service(s) for your credit union to offer, you'll want to ensure that you comprehend the local needs of your community and understand what part of Latin America your members, and potential members, are from.
This webinar is FREE for all Iowa credit unions. Look for the promo code in an upcoming communication.
Also, check out our
research report of the pilot program we did in collaboration with USAID, WOCCU and three Iowa credit unions.
