Trickling down.

Thanks to the Internet, microfinance--often associated with individual networks or non-governmental outfits--is becoming a tool of big banks, too. A small non-profit known as Microfinance International (MFI) is channeling the flow of remittances into new markets. The company has developed an electronic system that allows users to cheaply send money to rural areas in El Salvador from abroad, often where there is a void of traditional banks. The company also offers small loans, credit cards and financial education to those at home and abroad who never before were able to gain access, largely due to their isolation.

"Remittances can do a lot more. They can improve income, help to build a credit history, generate savings and help build financial stability," says Vanessa Vizcarra, MFI's Latin America regional manager in San Salvador. MFI is allowing other microfinance institutions to use its Web-based banking system to deliver remittances to rural areas at a lower cost. It's also accessing U.S. banking infrastructure to assist with transactions, which facilitates sending and receiving remittances by making the process seamless.

The trend is catching on. Banks throughout Latin America are exploring ways to serve people in rural areas. Brazil's state-owned bank Caixa Economica Federal has implemented technology that will allow customers to do their banking on cellular telephones, using a program called Caixa Aqui. Intended to handle low-volume accounts of less than $400 a month, the program reaches customers across all of Brazil.