World First USA, a subsidiary of the United Kingdom-based World First Group, said it believes banks charge too much money to help credit unions send money internationally. The firm wants to help credit unions cut those costs.
The decade-old World First Group got its start in the extremely competitive London foreign exchange market. It said American firms, including credit unions, are generally unaware of how much more they and their members pay for international wire transfers, which is less common in the U.S than in other countries.
"We want to be the international currency transfer desk for credit unions," said Jason MaGee, director of partnership development for the Washington, D. C.-based firm. He added that many credit unions are at the mercy of correspondent banks to provide remittances to members, and are unable to compare the exchange rate or negotiate lower fees.
Recommended For You
"We offer a way credit unions can make or receive international payments at a more competitive exchange rate and for a much lower fee," MaGee added.
World First Chief Economist John Min stressed that World First typically deals with relatively large transfers.
"We really begin at about $1,000 or $2,000," MaGee explained. "And there is no upper limit."
Typical clients of the firm include individuals and businesses seeking to buy or rent property overseas. Expatriates receiving paychecks in a foreign currency, small businesses and entrepreneurs who need to pay for overseas inventory and international students and academics also use the service, MaGee said.
World First has already developed relationships with five credit unions, which have begun to refer members to the service.
"Compared to the environment in the U.K, what we found here in the U.S. is really an oligopoly," Min said. "In many local metropolitan areas, one or two big banks control the market in international payments and there is no meaningful competition. We believe we can change that for credit unions."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
