A Snapshot of the Remittance Industry
Overview
Many countries around the world receive millions if not billions in remittances every year from
people living in the United States. For many of these countries it is the largest source of foreign income, next to tourism and/or oil in some cases.
The implication of this influx of economic resources varies from country to country but in the majority of the cases, the money received is used for development and to cover the basic needs of families in the country of origin.
The Senders
The remittances come from the men, women and often children that make the long and arduous journey to the United States. They are the unsung heroes of their countries. The mere fact that they often leave behind their families and friends goes against the very social fabric that makes many cultures so rich: the family unit. The journey is difficult and is made with one goal in mind: to seek economic opportunities to help their family back home.
The Players
Within the remittance industry, specifically when we speak of the electronic wire transfer industry, companies can be divided into three segments:
- Large Conglomerates – Western Union and Money Gram
- Public companies with a broach reach of services and products that cover many markets.
- Mid-market, niche firms – GroupEx
- Small, niche companies that cover very specific markets with limited services and products
The following websites provide additional information and research on the remittance industry and the changing market place as it relates to methods of remitting, pricing and new players:
- The Tomas Rivera Policy Institute: http://www.trpi.org
- The Pew Hispanic Center: http://www.pewhispanic.org
- The Inter American Development Bank: http://www.iadb.org
- The Inter American Dialogue: http://www.thedialogue.org
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(C) Copyright 2006 GroupEx Financial Corp.