Professional Documents
Culture Documents
Photo credits: Anna Cora Evans and Stephanie Grell • Layout & Design: Custom Designers, Inc. • Printing: ColorCraft of Virginia
International
Remittances DIVERSIFYING PRODUCTS TO
Ten of the 13 RedCoop credit REACH UNDERSERVED MARKETS
unions initiated remittance serv-
ices in 59 points of service In addition to offering real time access to member accounts
through WOCCU’s International and money transfers, Ecuadorian credit unions promote an
Remittance Network (IRnet®) in array of diversified microfinance products through delivery
June 2005. In the first five mechanisms that extend financial services to underserved
months, they distributed more communities.
than $1.8 million sent from the Credit: For the poorest microentrepreneurs, four credit
United States to member (35%) unions offer a group-based savings and lending product.
and non-member (65%) recipi- For established microentrepreneurs, several credit unions
ents. Instead of waiting in line, offer individual working capital loans based on on-site
member recipients can choose the evaluations of household income streams and repayment
convenient option of depositing capacity. Credit unions are piloting a rural microcredit
the remittances they receive product in which loan officers determine on-site
directly into their passbook individualized repayment schedules based on irregular
savings accounts. household and agricultural cash flows. For both urban and
rural microcredit, loan sizes range from $300 to $5,000
On the sending side, WOCCU with an average term of nine to 12 months. For higher-end
has launched an outreach cam- entrepreneurs, some credit unions offer supplier credit.
paign to Ecuadorians living in the
New York metropolitan area Savings: The Ecuadorian credit unions are authorized to
so that their relatives in Ecuador provide voluntary savings products to both members and
can benefit from credit union non-members. In response to demand identified at the
services. WOCCU has engaged client level, WOCCU has worked with Ecuadorian credit
leaders of the Ecuadorian immi- unions to develop programmed savings accounts for
grant communities, distributed agriculture, cars, Christmas, education, small business and
RedCoop posters in key remit- vacations. Rural field agents are mobilizing new savings on
tance sending agents and provid- average of $50,000 per month per agent at pilot credit
ed credit union members in unions in rural highland and Amazonian regions. Also,
Ecuador with postcards to mail to multiple credit unions are piloting youth savings to attract
their relatives abroad with infor- the next generation of financial service users.
mation about sending agents.
Washington Office
601 Pennsylvania Avenue, NW South Bldg., Ste. 600
Washington, DC 20004-2601 USA
Phone: (202) 638-0205
Fax: (202) 638-3410
Website
www.woccu.org
E-mail
mail@woccu.org