Credit unions considering adding remittance services will want to check out a new report from Appleseed, self-described as a non-partisan, non-profit network of public interest law centers. According to the report, Mexico is the largest remittance market in the world with immigrants expected to send $20 billion there in 2005. Cost to send the money? An estimated $948 million.
While costs have been dropping due to increased competition, it is still difficult for consumers to compare offerings and find the best deal, says Appleseed. Fees are a combination of transfer fees, exchange rate spreads and, sometimes, an added cost for the third party to collect the money. In addition, all fees are not necessarily disclosed at the beginning of the transaction.
The report discusses how CUs could make their remittance services more consumer friendly, distinguishing themselves from a plethora of other providers, as well as offering a look at competitors in four geographic markets.
