Citibank jumps on the low-cost remittances bandwagon

The remittance industry has now exceeded $30 billion and banks are increasingly looking to offer low cost (or free in Bank of America's case) transfers as a way to lure Hispanics, who often have a lower propensity to use banks than non-Hispanics.

Citibank just announced their program. For example, they partnered with a bank from Ecuador and is offering transfers of up to $3,000 for a flat fee of $5. Using Western Union can cost that much just to send $100.

The article is in today's New York Sun.