STRATEGIC PARTNERS
July 30, 2002
NEW YORK -- Citibankbecame the latest financial institution to introduce a special bank account targeting Hispanics with the introduction of the Citibank Money Card Account.
According to a news release, account holders can remit money from the U.S. to Mexico using the card, and a recipient in Mexico may withdraw the funds at any of the approximately 20,000 ATMs in the country, including 4,400 Banamex ATMs. Citigroup, Citibank's parent company, last year purchased Banamex for $12.5 billion. (See related story Citigroup makes major Mexican play)
The Citibank Money Card, currently in a pilot stage, is available through 26 Citibank Financial Centers in New York, Chicago and Los Angeles.
Account fees for the Citibank Money Card Account include a $5 monthly maintenance fee and a $7.95 fee for each withdrawal of funds transaction in Mexico. The fees are assessed to the U.S. account and are not deducted from the recipient's cash withdrawal.
According to the release, when a Money Card Account is opened in the U.S., it becomes a separate account distinct from any of the other customer's accounts. The account holder provides authorization to have a personalized ATM card delivered to a designated recipient in Mexico. The recipient will receive the Citibank Money Card and a PIN, so he or she can access the funds via ATMs in Mexico. Recipients are not required to have a bank account in Mexico.
According to the Inter-American Development Bank, more than $9.3 billion was sent to Mexico by Mexicans and Mexican-Americans in the U.S. in 2001.
Citibank announced in March that it would accept the Mexican Consular ID, known as the Matricula Consular, as a form of primary identification for people of Mexican descent opening Citibank accounts. In addition, the bank has recently offered discounted fees for wire transfers from Citibank to Banamex, along with other promotions aimed at the Hispanic market.
With its pending acquisition of California Federal Bank in California and Nevada, Citibank aims to extend its reach more significantly in Hispanic communities in those states. A large proportion of Cal Fed's branches in California are located in areas with large Hispanic and Mexican-American communities.
