Monday, May 5, 2008

Remittance: The Mexican Way

The Mexicans and the Hispanics constitute a large part of the American population. These immigrants have traditionally, politically and sociologically played a big role in the US. Most of these migrants remit their savings back to their countries through retailers and depend largely on them for the transfer of their cash. It is indeed quite interesting to trace how the Mexican and Hispanic immigrants staying in America sent a considerable chunk of their earnings to their folks back home thereby helping the economy to strengthen itself.

Since the 90s the remittance from the US to Mexico has seen a sharp increase. It has also seen how the once manual transfer of remittance has made way for computerised procedures which have reduced the time and cost to a large extent for the remitters in the US. In the 90s remittances were mostly hand delivered since the two countries share a common border it was the commonest way of sending money back home. Such a situation gave rise to the emergence of retailers who offered diverse financial services and came up with some innovative schemes to attract more customers. These retailers in way practised the now-famous offshoring and outsourcing business. As most of their customers belong to the poorer sections of the society they preferred offering products that were specifically aimed at fulfilling their needs.

With the advent of online money transfers, electronic money and innovative banking products the Mexican immigrants have got better options for remitting their money. It is indeed one of the classic examples of coming of age in terms of the remittance business.

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