TUCSON, Ariz. - Arizona credit unions, recognizing the strong Latino influence in their membership, began signing on to the new IRnet wire transfer system which lets members wire funds to individuals or businesses in foreign countries at a lower rate charged by other wire transfer services. The program, being pushed nationally by the World Council of Credit Unions and Vigo Remittance Corp. of New York was debuted for CUs at separate meetings here and in Phoenix. "Considering the new census data and what it shows on the Hispanic population, we found there was substantial interest in the program in this state," said David Grace, financial and information services officer with WOCCU which coordinated the meeting here along with officers of the Arizona Credit Union System. Eight southern Arizona credit unions were represented at the meeting that was held in offices of Tucson Federal Credit Union and 16 CUs were slated to attend the Phoenix session. Under the Vigo/World Council service, CU members pay $10 per $1,000 of funds wired to individuals in foreign countries. Participating CUs earn $7 of the fee with all of the software, marketing, training and installation expenses provided for free. Grace said he will move on this week and next to Omaha, Neb. and Tulsa, Okla., and to Albuquerque, N.M. in April to outline the Vigo program to representatives of CUs and state CU Leagues in those cities. Presentations are also scheduled for Oregon. Augustin Salazar, director of marketing and sales for Vigo in New York, said some 31 CUs have now signed on to the program with most located in Texas, California, North and South Carolina and Georgia. Grace of the World Council said one corporate CU, First Carolina Corp., in North Carolina is signing up for the program. "We're planning three or four more states to develop a presence including Wisconsin, Arkansas and Colorado," he said noting that all three states have within the last few years found themselves "with a growing immigrant presence" from nations throughout the Americas. Up to now, Vigo has marketed its services primarily through individual agencies located in convenience stores and pharmacy outlets, but it sees CUs as "having a tremendous potential for us because of their mission," said Salazar. Citing the market for the transfer service, Grace noted that between $500-$700 million is transferred out of Arizona alone each year to Mexican individuals. Until now, U.S. citizens and Mexicans living in Arizona have relied on the check cashing outlets and the convenience stores to transfer the funds and paid fees as high as 28%. -
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