It s the best way to send money home.

Transcription

1 It s the best way to send money home. Los Angeles, San Jose, and San Francisco November 7 9, 2006 The Directo a México logo and Directo a México are service marks of the Federal Reserve Banks in the United States and service marks of the Banco de México in Mexico

2 Today s Outline o What is Directo a Mexico? o How it works o Value to U.S. financial institutions o How it Works in Mexico o Payments channel o Value to receivers in Mexico o Getting Started 2

3 Account to Account Transfers o Uses existing ACH software and NACHA rules o CBR/PBR SEC codes o Certainty of Payment o Next business day funds availability (by 2:30 p.m. CT) o Same day as U.S. settlement* o Low cost o Per item surcharge of $0.67 to U.S. financial institutions o U.S. financial institutions determine own fee to customers *Assuming not a bank holiday in Mexico. 3

4 Remittance Fees are Decreasing o The average cost for remittances has decreased more than 64% during last five years. o It is now $10 for a $300 transfer Fee charged by USODFI Directo a México SM o USODFI participants in Directo a México, generally charge less than $5. Fee (USD) Citizens Union Bank Merchants and Manufacturers Blackhawk State Bank Alliance Bank Mitchell Bank MetaBank 4

5 More Pesos for Every Dollar Sent o U.S. dollar to Mexican peso conversion at highly competitive rate for every payment regardless of amount o Rate to consumer is wholesale rate (FIX) less 0.21% spread o 5

6 Foreign Exchange Savings Directo a Mexico FX rates compared to data in Appleseed study on FX rates of other transfers for 2 week period in Banked Bonus Directo a México FX rate results in beneficiary receiving peso equivalent of US$5 more per transfer (on a US$350 payment) a 3p 10a 3p 10a 3p 10a 3p 10a 3p 10a 3p 10a 3p 10a 3p 10a 3p 10a 3p 6/13 6/14 6/15 6/16 6/17 6/20 6/21 6/22 6/23 6/24 Texas Avg Directo a México Georgia Avg Nebraska Avg Illinois Avg Study available at: 6

7 More Value o Financial institutions determine own usage and customer procedures o non / customer usage o limit(s) on payment value o Access to Beneficiary Account Registration webpage o Directo a México Marketing Kit complimentary availability to all users 7

8 Directo a México Kit Helps Get Your Message Out o Customizable, Spanish language materials oriented to consumer needs o Color poster o Color brochure o Lobby/tent cards o Text of radio spot o FX Information Sheet o Customer Guide (market and promotional ideas for financial institutions) 8

9 Gateway to Mexican Payments System o Direct, electronic access to all bank accounts at any of the Mexican commercial banks and other financial institutions o o o Banks: Banamex, Santander Serfin, BBVA Bancomer, Banjército, HSBC, Bajio, Ixe, Inbursa, Interacciones, Mifel, Scotiabank, Banregio, Invex, Bansi, Afirme, Banorte, AbnAMRO, Amex, Bamsa, BankBoston, Azteca, Bansefi, Ve por más, AUTOFIN, Barclays. Brokerage firms: Monex, Masari, GBM, Value and Tiber. Other 15 financial institutions are in the implementation process. These include: insurance companies, mutual funds and brokerage houses. o Delivery to more than 41 million bank accounts in Mexico 9

10 Ease of Receiving Funds in Mexico o Receiver can access funds: o in own account o in a branch (8,757 branches nationally) o at an ATM (24,323 across Mexico) o via point of sale terminal (229,507 nationally) o No beneficiary deductions or lifting fees in Mexico o U.S. originator pays all fees for transfer to reach destination o Mexican banks do not charge beneficiaries to receive these payments 10

11 Mexican Electronic Interbanking Payment System (SPEI) o SPEI is the Mexican real-time gross settlement system supported, administered, and regulated by Banco de México, the Central Bank of Mexico. o SPEI handles large and small value payments o Complies with the more advanced international standards Core Principles for Systemically Important Payment Systems (BIS, 2001). 11

12 Directo a México through SPEI o RDFI required to post the payment amount in the beneficiary s account within 10 minutes following receipt. o Since October 2003, Banco de México has processed more than 735,000 payments for an approximate value of $295 million. o Return rate is 0.25%. 12

13 Processing Tips o Be certain about the ABM (Mexican Bank Association) number of the receiving bank. o Get the right CLABE number of the Mexican Beneficiary:18 positions. It can be obtained from the monthly balance statement. A CLABE verfication calculation can be used. o Get the right Debit Card Number (16 positions). Because this number changes when the card expires or is lost, we strongly recommend the use of the CLABE. o If you or your customer contacts the Mexican bank directly, you must mention that you need the CLABE for sending a Domestic transfer through SPEI or TEF. o The Beneficiary name must be included to avoid returns. 13

14 Location of CLABE Number on Mexican Bank Account Statement SAMPLE SAMPLE 14

15 CLABE (Clave Bancaria Estandarizada). o The Mexican banking system has established a unique 18 digit number to identify account holders. This unique number guarantees the correct posting of the funds transfers. It incorporates the standard account number with additional bank information. The structure is shown below. BBB PPP CCCCCCCCCCC D 1. ABM Bank number 2. Locality 3. Account number 4. Check digit CLABE structure 1. BBB ABM Bank Number; 3 digits. 2. PPP Locality; 3 digits. 3. CCCCCCCCCCC Check Account number; 11 digits. 3. D Check digit. 15

16 Getting Started 16

17 Tools o Guide to a Successful FedACH International Launch (1 page) o IntGuideSuccessLaunch.pdf o Mexico Service Manual-formats and more o o Updated daily & historical foreign exchange rates o o IADB Study on Remittances to Latin America o 17

18 Form an Implementation Team o Management - approvals o Operations integration with ACH platform; origination agreements o Marketing staff training and product promotion o Compliance determine account opening requirements, determine ceilings for payment amounts or totals, KYC requirements, etc. 18

19 Contacts Program Contacts Elena Whisler Federal Reserve, Retail Payments Office 404/ Enrollment Contacts Dorothy Williams FedACH Sales Specialist Federal Reserve Dallas 801/ Alberto Mendoza Retail Payments Head Officer Banco de México

20 Additional Information 20

21 21 Migrant concentration in the USA 64, ,416 Utah 64, ,270 Kansas 61, ,042 Indiana 117, ,662 Oregon 62, ,769 Michigan 179, ,545 Carolina del Norte 170, ,889 New York 196, ,288 Georgia 142, ,764 Nevada 149, ,934 Washington 103, ,049 Nuevo México 189, ,925 Florida 192, ,760 Colorado 435,001 1,065,578 Arizona 609,068 1,144,390 Illinois 1,870,787 5,071,963 Texas 3,889,695 8,455,926 California Mexican origin Migrants in USA State 7,394 32,267 Louisiana 19,797 39,900 Maryland 27,103 44,522 Alabama 30,524 52,871 South Carolina 24,306 55,178 Pennsylvania 199,987 61,154 Iowa 31,422 61,204 Arkansas 28,996 71,030 Nebraska 35,210 73,979 Virginia 51,174 77,372 Tennessee 30,573 77,887 Missouri 37,204 79,324 Idaho 23,216 90,663 Ohio 45,557 95,613 Minnesota 64, ,929 New Jersey 57, ,719 Wisconsin 58, ,813 Oklahoma Mexican origin Migrants in USA State

22 Migrants concentration in USA State Kentucky Connecticut Massachussets Mississipi Wyoming Hawai Alaska Delaware Montana Dakota del Sur Rhode Island Dto. de Columbia New Hampshire West Virginia Dakota del Norte Maine Vermont Total Migrants in USA 31,385 23,484 22,288 21,616 19,963 19,280 13,334 12,986 11,735 6,364 5,881 5,098 4,590 4,347 4,295 2,756 1,174 20,640,171 Mexican Origin 13,577 12,994-8,401 4,785 1,293 3,106 8, ,177-1, ,328,405 Sources: US Census Office, CONAPO Mexican National Population Council, CIS Center for Immigration Studies (CIS), Mexican Consulates in Piladelphia, Detroit, Michigan and Ohio Banco de México and CNBV 22

23 Mexican migrants origin, remittances and Banking infrastructure State Migrants to USA (Last 5 years) Remittances (USD millions and %) 2005 Population Directo a México Payments in 2005 Bank Branches Savings and checking accounts ATMs Guanajuato 366,123 1,715 (8.6) 4,663,032 25, ,346, Jalisco 291,657 1,693 (8.5) 6,322,002 86, ,503,499 1,647 Michoacán 248,040 2,595 (13) 3,985,667 42, ,071, San Luis Potosí 135, (2.4) 2,299,360 5, , Zacatecas 116, (2.5) 1,353,610 13, , Estado de México 111, (8.4) 13,096,686 2, ,294,016 1,690 Oaxaca 109,693 1,002(5) 3,438,765 1, , Puebla 97,604 1,174(5.9) 5,076,686 1, ,189, Hidalgo 91, (3.6) 2,235,591 1, , Veracruz 85,196 1,155(5.8) 6,908,975 2, ,780,702 1,081 Durango 79, (1.7) 1,448,661 7, , Sources: US Census Office, CONAPO Mexican National Population Council, CIS Center for Immigration Studies (CIS), Mexican Consulates in Piladelphia, Detroit, Michigan and Ohio Banco de México and CNBV 23

24 Mexican migrants origin, remittances and Banking infrastructure State Migrants to USA (Last 5 years) Remittances (USD millions and %) 2005 Population Directo a México Payments in 2005 Bank Branches Savings and checking accounts Number of ATMs Chihuahua 76, (1.5) 3,052,907 7, ,216, Sinaloa 65, (1.8) 2,536,844 1, , Guerrero 58, (4.8) 3,079,649 2, , Sonora 56, (0.9) 2,216,969 1, , Distrito Federal 50,982 1,452(7.2) 8,605,239 17,311 1,381 6,349,516 4,727 Tamaulipas 50, (1.5) 2,753,222 3, ,202, Morelos 47, (2.4) 1,555,296 2, , Nuevo León 46, (1.2) 3,834,141 14, ,128,090 1,932 Baja California 45, (0.9) 2,487,367 3, ,281, Chiapas 43, (3.3) 3,920, , Nayarit 38, (1.4) 920,185 2, , Sources: US Census Office, CONAPO Mexican National Population Council, CIS Center for Immigration Studies (CIS), Mexican Consulates in Piladelphia, Detroit, Michigan and Ohio Banco de México and CNBV 24

25 Mexican migrants origin, remittances and Banking infrastructure State Migrants to USA (Last 5 years) Remittances (USD millions and %) 2005 Population Directo a México Payments in 2005 Bank Branches Savings and checking accounts Number of ATMs Querétaro 38, (2) 1,404,306 1, , Aguascalientes 36, (1.6) 944,285 7, , Coahuila 35, (0.9) 2,298,070 4, ,006, Tlaxcala 15, (1.0) 962, , Colima 12, (0.7) 542,627 2, , Campeche 4, (0.2) 690, , Baja California Sur 1,312 21(0.1) 424, , Tabasco 126(0.6) 1,891, , Yucatán 17,901 80(0.4) 1,658,210 3, , Quintana Roo 73(0.4) 874, , Total 2,474,276 20,033 93,058, ,143 7,645 32,876,375 21,807 Sources: US Census Office, CONAPO Mexican National Population Council, CIS Center for Immigration Studies (CIS), Mexican Consulates in Piladelphia, Detroit, Michigan and Ohio Banco de México and CNBV 25

26 Banks Receiving Directo a México Transfers Bank Branches % total Accounts % total Banamex 1, % 4,256, % Santander Serfin % 6,836, % BBVA Bancomer 1, % 10,333, % Banjercito % 115, % HSBC 1, % 2,152, % Bajio % 77, % IXE % 66, % Inbursa % 174, % Interacciones 9 0.1% 3, % Mifel % 16, % Scotiabank % 1,208, % Source: Mexican National Banking Commission (CNBV) 26

27 Banks Receiving Directo a México Transfers Bank Branches % total Accounts % total Banregio % 71, % Invex 1 0.0% % Bansi 3 0.0% 56, % Afirme % 67, % Banorte % 3,882, % ABNAMRO 1 0.0% % Amex 8 0.1% 19, % Bamsa 1 0.0% % Azteca % 8,703, % Bansefi % 3,384, % 8, % 41,313, % Source: Mexican National Banking Commission (CNBV) 27

28 Mexican Banks Web Sites directory Bank Banamex BBVA Bancomer Santander Serfín Banjército HSBC Banco del Bajío Ixe Inbursa Interacciones Mifel ScotiaBank Inverlat Banregio Invex Bansi Afirme Banorte ABN AMRO Bank Amex Bank Banco Azteca Bansefi Web Site epage/default.shtml CLABE Information thorugh Web Site homepage, choosing personas> Conoces tu CLABE? BE_A wpage&pid=111 (Currently with errors in page) asp 28

29 Mexican Banks Association ABM Numbers for Mexican Banks ABM Number Bank ABM Number Bank Banamex BBVA Bancomer Santander - Serfin Banjercito Bital Bajío Ixe Inbursa Interacciones Mifel ScotiaBank Inverlat Banregio Invex Bansi Afirme Banorte ABN AMRO Bank Amex Bank Bank of America BankBoston Banco Azteca Bansefi 29

30 CLABE s check digit process o The check digit process involves a weight factor ( ), and each account number digit should be multiplied by its corresponding weight. o Only the last digit of the resulting number must be taken and considered in the sum to the other partial results. o Just the last digit of the sum must be taken. o This digit must be subtracted from 10. o Example: A CLABE s first 17 positions are A B Weight A i *B i Product PR 10-PR Position 17 Digits Addition result Preliminary result Check Digit o The CLABE must be , and the three first digits must be equal to the ABM Number of the Receiving DFI in México. 30