1 / 11

FI Challenges and Opportunities

FI Challenges and Opportunities. Elizabeth McQuerry Federal Reserve Retail Payments Office elizabeth.mcquerry@atl.frb.org. Opportunities. Remittances are big business – transactions Remittance senders need entire range of financial services – new customer relationships

idola-yang
Download Presentation

FI Challenges and Opportunities

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FI Challenges and Opportunities Elizabeth McQuerry Federal Reserve Retail Payments Office elizabeth.mcquerry@atl.frb.org

  2. Opportunities • Remittances are big business – transactions • Remittance senders need entire range of financial services – new customer relationships • Possible Community Reinvestment Act (CRA) credit for offering remittance services – compliance • It’s ACH – no new systems need • Develop new or deeper customer relationships with employers • Access to Bansefi’s Beneficiary Account Registration (BAR) website • FIs can easily pre-open a Bansefi bank account for a third-party beneficiary in Mexico

  3. Challenges • Potential customers may be undocumented and/or unbanked • CBR/PBR format not familiar to many FIs or initially not available in all softwares • CLABE (Mexican bank account number) perplexing to some customers and FIs • FIs often not well versed in marketing or prepared to assist customers with ESL needs • FX profit has previously been an issue for larger banks

  4. Enrollment Process • Information Gathering • Review “Mexico Service Manual” http://www.frbservices.org/Retail/pdf/FedACHiMxManual.pdf • Form a cross-functional Implementation Team • Enroll in service • Set Up & Testing • Test formats end-to-end • Prepare to roll out marketing campaign • Begin Offering Service Check list on internet: http://www.frbservices.org/Retail/pdf/DirectoMexico_NextSteps.pdf

  5. Readiness Tips • Understand what’s different about payments to Mexico • Understand Mexican account numbers (info in Service Manual) • CLABE – 18 digit deposit account number constructed from Mexican bank ABA number, locality code, account number and check digit • Debit cards - 16 digits number assigned by VISA but linked to CLABE account • Include beneficiary name and other required fields • Provide internal training for front line and back room staff

  6. Happy FIs • Directo a México • FIs with a commitment to working with Hispanic and/or new immigrant communities • FIs desiring to build new customer constituency and strengthen community ties • FIs with employer relationships (new account holders with Direct Deposit; automated transfers; etc.) • Ideal for small and medium size FI • F3X Pilot • FI wanting to manage own foreign exchange • FI with corporate customers needing to pay invoices in foreign currency • Ideal for Top 50 FI

  7. Industry Issues • How to bring back office tool (ACH) into bank lobby to serve customer needs and processing efficiency? • How to make FIs more comfortable sending cross-border payments? • How to make FIs more knowledgeable of and confident with compliance issues? • How to ensure that “Cross-Border II” gets off to best start – industry education, IAT capability in all softwares, processor readiness, operator readiness, provide FI tools to be successful?

  8. Directo a México Volume

  9. Directo a México Volume

  10. FIs sending payments No. of FIs

  11. Primary Contact Elena Whisler Program Specialist – Directo a México Retail Payments Office (404) 498-7879 elena.whisler@atl.frb.org Secondary Contact/ Operational Issues: John F Morris Retail Payments Office (404) 498-8283 john.f.morris@atl.frb.org Program Contacts

More Related