Wells Fargo & Co. (NYSE: WFC) announced on Thursday that it has doubled the number of locations in Mexico where remittance recipients can pick-up money that that their relatives send home from the United States.
In an agreement with Transnetwork Corp, Wells Fargo will add more than 4,000 receiving locations, bringing its total to more than 9,000. The company includes payout locations such as supermarket chain Organizacion Soriana, furniture and appliances retailer and consumer finance concern Grupo Famsa, as well as branches of Banco Santander and Mexican development bank Bansefi.
The deal between the two companies comes at a time when remittance levels recovery from a decline in 2008 and 2009 when Mexicans work in the U.S. suffered from rising unemployment and declines in the construction industry.
Senders of remittances are becoming more savvy about exchange rates, transfer costs, convenience and securities, Ayala said. He added that Wells Fargo & Co. (NYSE: WFC) has a market share “in the billion-dollar-plus range.”
Remittances to Mexico during the second quarter totaled $5.81 billion, up from 3.7% during the same quarter a year ago. The transfers, which generate more dollar inflows to Mexico than foreign Tourism, fell by 16% to $21.18 billion last year after a 3.6% drop in 2008.
The remittances business “is one we’ll continue to expand and focus on,” Ayala said.
Wells Fargo & Company is a diversified financial services company. The Company provides retail, commercial and corporate banking services through banking stores located in 39 states and the District of Columbia. It provides other financial services, through subsidiaries engaged in various businesses, principally wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment. The Company operates in three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage and Retirement. As of December 31, 2009, the Company provided banking, insurance, investments, mortgage and consumer finance from more than 10,000 stores under various types of ownership and leasehold agreements.
Shares of Wells Fargo & Co. (NYSE: WFC) traded up 0.97% hitting $23.82 during mid-day trading on Wednesday.
