One in ten U.S. residents is an immigrant. Over half of those immigrants are from Latin America. Financial institutions have an opportunity to reach these new Americans by offering competitive and convenient remittance options. Forty states and the District of Columbia each sent over $100 million dollars in remittances to Latin America in 2006, demonstrating that there is an existing market opportunity throughout the United States. More than 60 percent of Latin American immigrants living in the U.S. today remit money on a regular basis and, though bank participation varies from community to community, on average, 63 percent of Latin American immigrants do not have bank accounts. Since immigrants remit 13 times per year on average, remittance products offer a tool for attracting and retaining Latin American and other immigrant customers

Financial institutions can use this guide to evaluate remittance program options. The 11 financial institutions surveyed asserted that offering remittance services is an important step towards establishing long-term relationships with immigrant customers. The most successful programs embrace serving immigrant markets and offering remittances from top management down. The guide provides an assessment of the U.S.-Latin America remittance market and offers essential information to implement a remittance program:

1) A step-by-step guide for implementing a remittance transfer program;
2) An overview of six remittance product approaches; and
3) Recommendations for an effective marketing program for remittance products.

Approximately 100 banks and credit unions in the United States currently offer and actively market consumer remittance products – a fraction of the number that could be providing remittance services to growing immigrant communities. Among Latin American immigrants, 70 percent of remittance senders use cash-to-cash transfer services through money transfer operators such as Western Union and MoneyGram; estimates of remittances sent through banks vary from five to 19 percent of transfers.

Appleseed has worked over the past four years to educate immigrant consumers about the U.S. financial services system and to educate financial institutions about the needs of immigrant communities. When new immigrants use financial institutions, they have a safe place to keep savings; they can benefit from reduced transaction fees, and they have opportunities to build credit. Using banks and credit unions for remittance transactions may also have the added benefit of connecting remittance recipients to formal financial services, increasing the economic development impact of remittances in remittance receiving countries.

CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION
MARKET OVERVIEW: REMITTANCES IN THE U.S. AND ABROAD
KNOW YOUR CLIENTELE: REMITTANCE SENDERS AND RECIPIENTS
NUTS AND BOLTS: CHOOSING THE RIGHT REMITTANCE APPROACH
CONCLUSION
APPENDIX A: REMITTANCE PROGRAMS AT A GLANCE
APPENDIX B: AN OVERVIEW OF REGULATORY REQUIREMENTS
REFERENCES AND ENDNOTES

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