SAN FRANCISCO, November 13, 2006: Xoom Corporation announced a unique strategic venture with New Jersey-based Indus American Bank. This partnership allows Indus American Bank to offer their customers remittances to India through Xoom's global money transfer engine and expanding disbursement network.
"It's the perfect time for Xoom to sign on with Indus American Bank as a global money transfer partner. With our newly expanded India disbursement network, we provide Indus with remittance services that compete with those of national banks", says Gene Gutierrez, SVP of Business Development, Xoom Corporation.
By taking care of the compliance, technology and distribution issues that make remittances so complex, Xoom positions community banks to compete with national players when it comes to acquiring and cross-selling to immigrant customers. This will help contribute to the wave of emerging ethnic community banks in the US.
Plug-and-Play Remittance Product
Indus American Bank was formed with a vision to provide superior financial products and service to the local South Asian community, and this was their primary motivation to associate with a global money transfer service.
"The offering of the remittance service is consistent with Indus American Bank's mission of providing quality service targeted toward the South Asian community residing in the New York/New Jersey area," says Kevin M. Lenihan, President and CEO of Indus American Bank.
With this venture, Indus American Bank plugs into Xoom's India disbursement network, which includes pickup, direct deposit to any bank account and home delivery. Indus American Bank rolls out their remittance service with a network of over 2,000 pickup locations throughout India.
An Ambitious Initiative
Indus American Bank and Xoom went from initial discussion to product deployment in just only three months. Indus American Bank launched their remittance product to India on November 13, 2006, and will offer remittances to Nepal, Pakistan, Sri Lanka and Bangladesh by the end of this year.
"Partnering with Indus American Bank to offer their remittance program is a "win-win-win: for Xoom Corporation, Indus American Bank, but most importantly for the South Asian community," says Gene Gutierrez, Xoom's SVP of Business Development. This is an important venture for Asian Indians who now have the opportunity to send funds to India directly from a South Asian community-focused bank, and is sure to experience quick acceptance and success amongst this highly transfer-active community.
Remittances reach $232 billion
According to the World Bank, officially recorded remittances worldwide exceeded $232 billion in 2005. Of this, developing countries received $167 billion, more than twice the level of development aid from all sources. India was the top recipient country of recorded remittances in 2004, with $21.7 billion. The United States was the largest source of remittances in 2004, with $39 billion in outward remittances.
Xoom Corporation was founded in 2001 in San Francisco, Calif., and is backed by leading venture firms Sequoia Capital, New Enterprise Associates and Fidelity Ventures. Consumers and client partners from all around the world use its disbursement network to send money to dozens of countries in the Americas, Africa, Asia, Europe, and the Middle East
About Indus American Bank
Indus American Bank, a wholly owned subsidiary of IA Bancorp, Inc., was founded in 2004 by local businessmen and community leaders to provide superior financial products and services to its local community. Indus American Bank is one of the first commercial banks focused on serving the South Asian community. Headquartered in Iselin, New Jersey, Indus American Bank operates two full-service branches plans to expand to other cities in New Jersey. www.indusamericanbank.com