Int'l Remittance Volume Surges
MADISON, Wis.-The number of remittances paid out in 2006 by World Council of Credit Union, Inc.'s International Remittance Network (IRnet) increased by 30.8% over the previous year, totaling more than $480 million-up from about $384 million in 2005.
In the past six years, IRnet has distributed more than $1.4 billion in transactions through about 900 points of service in Bolivia, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico and Nicaragua. In 2006, IRnet and its strategic partner, Vigo Remittance Corp, entered the African market for the first time with the creation of IRnet Coop Kenya, which offers remittances through SACCOs (credit unions) in Kenya. This year, IRnet will also expand to Colombia. In addition to international expansion, 141 credit unions are registered as IRnet agents in the US.
The World Bank reports that since the formation of IRnet in 2000 by World Council, the annual amount of international remittances has doubled from $132 billion to an estimated $268 billion. Including unrecorded and informal exchanges, the amount of remittances worldwide is estimated to exceed the GDP of many developing countries.
Growth is A Global Concern
MADISON, Wis.-Weak membership growth, competition, low consumer awareness, and restrictive legislation are the top concerns for credit unions both locally and globally, according to the World Council of Credit Unions' recent triennial member survey.
"Increasing the number of members was a primary theme," said Dave Grace, senior manager of association services, who oversaw the survey of World Council's national and regional members. "Three of the top four responses-weak credit union growth, lack of consumer awareness and competition-center on membership. While it is more of a concern in developed countries, most respondents indicated that it was a concern no matter what country they were from."
Grace said he thinks it would be especially beneficial to all credit unions to study how other national movements are working on membership, particularly with regarding to 18- to 34-year-olds. "Many of the historical connections via churches, employers and unions need to be revisited," Grace said.
The survey, which had an 85% response rate, also indicated that members want World Council to continue work on legislation in close coordination with national movements, develop regulatory standards and the promotion of good governance principles, as well as help build more cohesiveness within the credit union system.
