Microfinance International Corporation merges with El Camino to enter the California and Texas markets
Microfinance International Corporation (MFIC) and El Camino Transferencias, Inc. (El Camino) announced today that they are joining forces in a strategic merger agreement. The combined company will make MFIC one of the leading money transmitters focused on financial institutions, and will improve operational efficiency and accelerate growth for both companies throughout the United States, particularly in major immigrant markets such as California and Texas. It will allow MFIC and El Camino to more strongly pursue a large and important market opportunity: improving regulatory compliance, technology and service in international money transmission, as well as integrating unbanked immigrants into the formal financial sector.
The main objective of both companies is to supply banks, credit unions, money service businesses and agents with a dependable remittance settlement platform that features advanced anti-money laundering compliance functions, lower pricing and competitive distribution. gEl Caminofs expertise and presence in the market has tremendous value for MFIC to thrive in the most competitive market,h said Atsumasa Tochisako, CEO and President of MFIC. Above all, MFIC and El Camino share a common purpose to increase bank and credit union participation in remittance origination. Banks view money transfers as an attractive entry offering for immigrants, however they are concerned about ensuring AML compliance, need a strong commercial justification and do not offer suitable products. Today, only around ten percent of over $90 billion remitted annually by immigrants in the U.S. is processed by banks or credit unions.
The merger will introduce more competition into this insufficiently served segment of the money transfer market. El Camino brings MFIC sales professionals specialized in this niche; a large agent network; highly competent management; distribution in 22 countries, including additional points for MFIC in Mexico; and state money transfer licenses in California, Texas, Washington and Oregon. MFICfs existing operation includes numerous banks, money transmitters and check cashers using its platform on a white-labeled basis (including Alante Financial, its own brick-and-mortar retail financial institution); distribution in 85 countries and territories; and money transfer licenses in Maryland, Virginia, the District of Columbia, Delaware, Georgia and New Jersey.
MFIC is a Washington-DC company dedicated to extending affordable retail and wholesale financial services customized for immigrants and the financial institutions which serve them. The California-based El Camino reinforces MFIC already sophisticated services and regulatory compliance practices, which have been featured in meetings and publications of the Federal Reserve, the FDIC, the Money Transmitter Regulators Association, and the G-8. MFIC testified twice before the U.S. Congress in 2007 on remittances, while its transformative business approach to banks, immigrants and AML compliance has earned it financial investments of three sovereign governments, including the U.S., Japan and the Netherlands.
The main objective of both companies is to supply banks, credit unions, money service businesses and agents with a dependable remittance settlement platform that features advanced anti-money laundering compliance functions, lower pricing and competitive distribution. gEl Caminofs expertise and presence in the market has tremendous value for MFIC to thrive in the most competitive market,h said Atsumasa Tochisako, CEO and President of MFIC. Above all, MFIC and El Camino share a common purpose to increase bank and credit union participation in remittance origination. Banks view money transfers as an attractive entry offering for immigrants, however they are concerned about ensuring AML compliance, need a strong commercial justification and do not offer suitable products. Today, only around ten percent of over $90 billion remitted annually by immigrants in the U.S. is processed by banks or credit unions.
The merger will introduce more competition into this insufficiently served segment of the money transfer market. El Camino brings MFIC sales professionals specialized in this niche; a large agent network; highly competent management; distribution in 22 countries, including additional points for MFIC in Mexico; and state money transfer licenses in California, Texas, Washington and Oregon. MFICfs existing operation includes numerous banks, money transmitters and check cashers using its platform on a white-labeled basis (including Alante Financial, its own brick-and-mortar retail financial institution); distribution in 85 countries and territories; and money transfer licenses in Maryland, Virginia, the District of Columbia, Delaware, Georgia and New Jersey.
MFIC is a Washington-DC company dedicated to extending affordable retail and wholesale financial services customized for immigrants and the financial institutions which serve them. The California-based El Camino reinforces MFIC already sophisticated services and regulatory compliance practices, which have been featured in meetings and publications of the Federal Reserve, the FDIC, the Money Transmitter Regulators Association, and the G-8. MFIC testified twice before the U.S. Congress in 2007 on remittances, while its transformative business approach to banks, immigrants and AML compliance has earned it financial investments of three sovereign governments, including the U.S., Japan and the Netherlands.