It seems as though the un-banked individual will no longer have to send their cash to an alternate location via expensive and inconvenient wire transfers, carrier-pigeon or Fed-ex; all it takes is a cellphone and an ATM machine!

Due to the wonders of technology and a company called Privier, Inc., the latest and greatest alternative is a patented no card, no bank account automated cash-to-cash remittance solution for domestic banks as well as abroad. The service, called “ATMSend” allows the unbanked sender to transfer a maximum payment (which is set by the bank) to a recipient of their choice using an ATM that accepts cash deposits. The sender simply enters the recipient’s cell phone number, and a system-generated ten digit number is automatically sent via text message to the recipients mobile phone. The recipient is then able to withdraw the money (which must be requested in full) at an ATM using this ten digit number.

To utilize the service, the sender first would have to register a cell phone through a participating bank either online or via telephone, providing key information including their name, address, Social Security number, date of birth and cell phone number. Privier would verify the user’s identity and check information against the Office of Foreign Assets Control list of terrorists.

This service for the un-banked comes at a time of rapid growth and increasing convergence between telecommunication and financial services, especially in developing countries where access to cell phones is sometimes easier to come by than banks. Mobile banking services have proven popular in the Philippines, Kenya and South Africa, for example. Mobile finance that uses cell phones for financial transactions is a growing technological area because 80% of the global population is covered by a cell phone network, according to Marketdata.

According to a recent article in the Wall Street Journal:

Charles Polanco, chief executive of Privier, pointed to data from the Chicago-based Center for Financial Services Innovation indicating that 106 million persons in the U.S. lack a bank account. More than half, he said, have Social Security numbers; however many are distrustful of banks.

Meanwhile, the money transferremittance marketplace is a $6.1 billion industry, slated to grow 8% in 2008, Marketdata said. Large U.S. banks already in the money transfer business include Bank of America Corp., Citigroup Inc., Wells Fargo & Co., BB&T Corp. and U.S. Bancorp, the report said.

These programs often are limited to specific countries. Bank of America offers free transfers for people who have a bank account. Western Union Co. has been piloting mobile money transfer through arrangements with two Philippines-based wireless services operators, Globe Telecom and Smart Communications. Right now, it costs as little as $2.56 to send up to $100 for a mobile transfer from Hawaii to the Philippines, said Kristin Kelly, a spokeswoman with Western Union.

Privier seeks to level the playing field currently dominated by Western Union and MoneyGram International, who in partnership with Wal-Mart Stores Inc. touts low fees for money transfers at the retail giant . Combined, these two companies have 22% of the market but competition from credit card companies as well as Privier seek to change this.

To the unbanked, and underbanked, consumers of the world; it appears that your needs are being recognized by the powers that be in the financial sector; and none too soon.

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