The Romanian Savings House (CEC) management explained Thursday why the bank had chosen the Transfer Rapid LLC to operate money transfers, following the media reactions regarding the launch of this service on Feb 22 in partnership with the American company.
The CEC chairman Eugen Radulescu said that by choosing the new transfer money service, the customers can deliver smaller sums of max. 1000 Euros and benefit from lower commissions, almost half the current price displayed by the two major transferors on the Romanian market Western Union and Money Gram.
Another reason why CEC has opted for the Amercian company is that it challenges the domination on the transfer money of the two big players.
The contract’s clauses are not very restrictive; CEC has allowed itself to withdraw whenever necessary as the contract does not impose any time limit.
Although a small company, Transfer Rapid LLC’s ownership has not been disclosed, the only transparent interface is the figure of James Rosapepe, former US ambassador to Romania.
The service is currently available only for transfers from the US to Romania, but starting this June it will open to the Italian and Spanish markets.
Radulescu expects a volume of 30 mln euros transfers this year alone. The bank announced 2005 profits of approximately two mln euros. The network counts 1407 local units and employs 7500 persons. 1000 employs will quit jobs by the end of the year, after 1700 were laid off last year.