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| Bank of America recognizes the growing importance of the remittance industry. The development of SafeSend is an example of the many ways Bank of America is working in the interest of the Hispanic community, by providing a convenient, trustworthy alternative to traditional remittance products. |
Leticia Aguilar
Consumer Banking Executive,
Greater Los Angeles Division
Bank of America Corporation
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| Bank of America |
Mexican immigrants in the United States wire more than $9 billion per year home to relatives and typically pay up to 10% of the wired amount in fees. In response to that market need, Bank of America created the SafeSend program. SafeSend allows holders of checking accounts or credit cards to set up separate accounts for transferring funds, with personal codes to allow access via ATM, phone, or online for a flat fee.
“Financial services technology has enabled this win-win,”
said Leticia Aguilar, Los Angeles based Consumer Banking Executive
for Bank of America. “Technology enables Bank of America to
provide the service at price lower than the competition's. Individuals
now not only have more choices of products and services, but a relationship
with a bank helps people begin building savings and establish credit
records.”
One of the keys to the program's success is Bank of America phasing
in acceptance of matricula consular cards (identification issued by
the Mexican government) as identification for opening accounts.
Immigrants are the fastest growing group of “unbanked” lower-income people, according to the report, Banking on Technology: Expanding Financial Markets and Economic Opportunity. “The immigrant population has high potential for upward mobility and is thus considered attractive by financial industry marketing analysts,” says Steve Davidson, co-author of the report.
Competition among domestic and foreign banks for this market is intensifying. Wells Fargo, U.S. Bancorp, and Banco del Ahorro Nacional Servicies Financieros, a government-backed Mexican bank are currently vying for market share. In addition to providing new products and services like SafeSend, Bank of America has quadrupled its budget for advertising to minority consumers to $40 million.
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