Sin ttulo de diapositiva

1
Grupo Financiero BBVA Bancomer
Family Remittances USA to LATAM BBVA Bancomer
Transfer Services Inc.
June 3, 2004
Tokyo, Japan
2
Switching to formal payment channels could
benefit most of the participants of the
remittances market

• In Mexico, family remittances start to switch to
  formal payment channels back in year 2000
• Many new participants joined the industry, due to
  formal access to formal payment networks
• With access to formal payment networks, new
  participants were able to offer
• High quality service at payment to beneficiaries
• Competitive prices
• Strengthen compliance programs
• This provides the consumer with more reliable and
  secure alternatives to wire money at affordable
  prices

Source Banxico
3
The result 90 of the family remittances to
Mexico are transferred electronically and mainly
through formal payment channels
Family remittances to Mexico
(USD mill)
Total 4,224 4,865 5,627
5,909 6,279 8,896 9,815 13,266 Vol.
BTS 77 136 216 189 750
3,540 4,797 5,602 Mkt. Wires 0.03
0.05 0.07 0.05 34 45 55
49 Mkt. Total 0.02 0.03 0.04 0.03
11 40 49 42
Source Banxico
4
BBVA Bancomer through its BTS solution, has
played a key role in lowering consumer costs
Transactions (000s)
Funds 23 77 136 216 189 750 3,540 4,797 5,602 (mil
l USD)
Consumer cost of wiring 360 (USD)
5
Currently, BBVA Bancomer pays almost half of
the remittances that are transferred
electronically
Payment of family remittances transferred through
electronic wires (USD Mill)
2003 11,381
BBVA Bancomer 5,602 49
Other 5,779 51
Source Banxico
6
In 2004, BTSs volume continues to grow at two
digits rates
Transactions
Funds (USD 000)
15.7
15.6
18.1
22.3
1Q 03
1Q 04
AM 03
1Q 04
AM 03
AM 04
AM 04
1Q 03
This confirms that BBVA Bancomers leading
service is the consumers top choice to wire
money back to Mexico
7
Based on Mexicos success, we are extending
BTSs international presence through banking
institutions...

• Dinero
• Express
• 10 locations
• Madrid
• Barcelona
• Valencia
• Lorca
• 1 Agent 2 Offices
• Madrid and Málaga

Retail
Wholesale
Agents
BFS
BTS
Banco Agrícola
35,000 third party POS

• 22 Locations
• Texas
• California

Central America Caribean
South America
Africa

• Guatemala
• Banco de Desarrollo Rural.
• Banco Uno
• El Salvador
• Banco Agrícola, S.A.
• Banco Salvadoreño
• Banco Uno
• Nicaragua
• Banco Uno
• Honduras
• Banco Mercantil
• Banco Uno
• Dominican Rep.
• Banco del Progreso
• Banco de Reservas

México

• Colombia
• BBVA Colombia
• Banco Davivienda
• Banco Gran Ahorrar
• Banco Colmena
• Ecuador
• Banco de Guayaquil
• Banco del Austro
• Banco Internacional
• Brazil
• Bradesco
• Bolivia
• Banco Mercantil
• Banco Bisa

• Perú
• BBVA Banco Continental
• Argentina
• BBVA Banco Frances
• Venezuela
• BBVA Banco Provincial
• Chile
• BBVA Banco BHIF
• Uruguay
• BBVA Uruguay
• Paraguay
• BBVA Paraguay

In progress
Asia
In progress
8
And into new market segments with ad-hoc products
MEX
USA
Account - Account Intercuenta Express
Banked
Banked
Cash Account Envíos de Dinero Card
Banked
Unbanked
Cash - Cash
Unbanked
Unbanked
9
CONCLUSIONS

• With formal channels the sender enjoys better and
  more alternatives to wire money back home
• BTSs solutions provides with the following
  advantages
• Point of Sale has less claims and can provide
  better service to their customers (0.02)
• The transmitter has better control of activities
  and can reach many destinations through the same
  pipeline
• Payment entities can rely that the most stringent
  compliance and monitoring applictions screen
  every transaction
• Beneficiary can always count that the money will
  be ready for
• payment
• Due dilligence is performed to network
  participants in order to join the program

10
CONCLUSIONS

• And the most important benefit of formal payment
  channels
• Consumers are wiring 31 more money back home
• 1999 average face value per transaction 287 USD
• 2004 average face value per transaction 377 USD
• At lower prices

300 price reduction !!!