Bring money transfer options in-house
By Craig Sauer
More than 80% of consumers who conduct a person-to-person (P2P) transaction through MoneyGram International also have a traditional banking relationship.
“They want to use their financial institutions, but they just don’t offer the service,” says Eric Fosselman, senior director of sales for MoneyGram International, a CUNA Strategic Services alliance provider. “That’s the crux of it.”
P2P money transfer is a $529 billion a year industry and projects to increase to $665 billion by 2015, according to the World Bank.
More remittances emanate from the U.S. ($52 billion) than any other country. People can send money anywhere in minutes via online and mobile channels, as well as at branches, kiosks, and automated teller machines (ATM).
Notably, a sizable amount of transactions stay within the U.S. Not only are many of these P2P users affiliated with financial institutions, about four-fifths are employed and less than 45 years old.
“Members today walk past credit union branches to go to nonfinancial retail operations—places like check cashers, Walmart, CVS/pharmacy—for payment products,” Fosselman says.
According to Fosselman, the growing popularity of these money transfer options, among the banked and underbanked, presents an opportunity for credit unions to:
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