Report Provides Snapshot of CU Remittance Transfers

Credit unions are a small share of the remittance transfer market, according to a recent report by the Bureau of Consumer Financial Protection (Bureau).

The report found that credit unions in 2017 conducted 0.2 percent of remittance transfers and 2.8 percent of the dollar volume based on the average dollar value of remittance transfers by credit unions in the industry survey. Credit unions reported 762,609 remittance transfers in 2017.

The Bureau found that 1,444 credit unions in 2017 offer remittance transfers, up from 863 credit union in 2009.

The number of credit unions that transferred more than 100 remittances in 2017 was 330. In 2014, only 280 credit unions transferred more than 100 remittances, which was down from 372 credit union in 2013. Credit unions that make more than 100 remittance transfers per year are subject to the Bureau's Remittance Rule.

Credit unions that offer and transfer more than 100 remittances are typically larger than credit unions that offer but transfer 100 or fewer remittances. In every year, the median asset size of credit unions that offered and transferred more than 100 remittances exceeded $125 million versus under $20 million for credit unions that offered, but did not transfer 100 remittances.

In 2017, the top 10 credit unions transferred 63 percent of all remittances by credit unions and credit unions that transferred more than 2,000 remittances accounted for 78 percent of all credit union transfers.

Read the report.