Wachovia woos Latin customers

Wachovia Bank plans to roll out a new ATM card for its Hispanic customers in the Washington area next month to help them send money to friends and family in Latin America.

Customers can add value to the cards at automated teller machines, by telephone or at branch banks, and mail them to countries throughout Latin America, where they can be cashed at any ATM in the Visa/Plus network.

The Wachovia Dinero Directo Card, or money direct card, is the latest entry in the bank competition to win customers in the Washington area’s fastest-growing minority community.

The card follows the marketing theory that a customer for one banking service becomes a customer for other services, such as home or business loans.

Hispanics represent more than 13 percent of the U.S. population and are the nation’s fastest-growing minority, according to the 2000 U.S. Census.

“We want to have a long-term relationship with these individuals,” said Jorge Moller, Wachovia’s Hispanic segment strategy director.

The Hispanic immigrant population sends about $36 billion home to Latin America each year.

Until now, many Hispanics used electronic transactions handled by small companies that specialize in money transfers or shipments to Latin America.

The Dinero Directo Card represents an effort to bring the remittances into the traditional banking system, said Ralph Luna, manager of the Wachovia branch at 3325 14th St. NW.

Friday afternoon, he explained the card to Ramon Cruz, who was getting change for the restaurant he owns in Columbia Heights.

“It could be good,” said Mr. Cruz, who sends about $400 per month to his mother and brother in El Salvador. “Maybe more security.”

The Federal Deposit Insurance Corp. says 32 percent of Hispanics do not have bank accounts, although their buying power is close to $600 billion.

Mr. Luna said part of the reason is the distrust they feel toward banks in their home countries.

“You look at a lot of the banks in Latin America and they think the bankers are crooks,” Mr. Luna said.

The multinational ATM cards are another service that could help them build trust for Wachovia and other American banks, he said.

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