PINcept.com: Remittance Going Postal?

Remittance Going Postal?

Remittance opportunities for postal operators

Postal operators that provide financial services are well-positioned to enter the money transfer market, according to a senior figure in the remittance sector.

Moises Jaimes, chairman and CEO of BBVA Bancomer Financial Holdings, made the comments at the Global Money Transfers Summit 2009 (GMTS) that was held in London.

Speaking about the success of money transfer provider Bancomer Transfer Services (BTS), which is an affiliate of BBVA USA, Jaimes commented on the advantages gained by the relationship between BTS and the US Postal Service: “You have to embrace regulation. There is no other way to do it. You have got to be perfect. Most of our compliance learning has come via our relationship with the US Postal Service.”

BTS was established in 1995 and is recognised as a leading player in the US-Mexico remittance corridor.

Having created an origination network that has already been rolled out in 23 countries, Jaimes said almost 75 percent of remittances paid by banks in Mexico are channelled through BTS.

Jaimes said: “It is time to expand into other countries and that is what we are doing. I believe there is a lot to be done in Eastern Europe. We would also like to have a larger presence in Africa and Asia.”

Reviewing the latest trends in the money transfer sector, Jaimes said that although it has taken a long time, banks are increasingly keen to enter the money transfer space: “Banks are opening up to opportunities to white-label a money transfer programme.”

He added that although mobile technology is likely to play an important role in the delivery of money transfer services in the future, much work remains to be done in order to make mobile money transfer services cost-effective.