Paper
Remittances: Citibank Builds Remittance Products Designed for Mexican Migrants, with Banamex (Innovation Brief)
Remittance services to the unbanked individuals
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4 pages
This document discusses the remittance products designed by Citibank that cater to Mexican migrants.
Introducing Citibank, the document states that the bank:
- Is part of Citigroups five financial groups;
- Operates in 50 countries worldwide as a consumer bank.
The document then traces the path traveled by Citibank to launch remittance products:
- Introduced the product "c2it" and then discontinued;
- Replaced c2it with money transfer products;
- Acquired Banamex and launched remittance products in the Mexican market.
The paper mentions that Citibank has introduced two kinds of cross border accounts:
- Access account offered in the US;
- Tricolor card offered in Mexico through Banamex.
It highlights the main features of the two products and illustrates the remittance transaction between Citibank, US and Banamex Mexico.
The document identifies potential challenges and opportunities in launching the product. It conveys that the main challenges by the bank are:
- Change or influence on the habits of the unbanked population;
- Fear of deportation;
- Lack of necessary knowledge to use the technology.
Finally, the document:
- Highlights the implication for institutions offering microfinance services;
- Describes the advantages and challenges for an MFI entering the remittance market;
- Presents the future plans of the Citibank;
- Concludes that it is too early to measure the impact of the innovation on the overall banking business.
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