In an effort to expand its money transfer business,
MoneyGram International Inc.
) announced a strategic alliance with China's leading Shanghai
Rural Commercial Bank (SRCB). As per the agreement, MoneyGram
will be offering its services to over 23 million people in
Shanghai through 340 branches of the bank.
Accordingly, both the parties have agreed to gain scale by
providing money transfer services in 20 places where SRCB
branches are located. Furthermore, this alliance will allow
MoneyGram to offer services to over 100 financial convenience
stores of SRCB, to be revealed in the near future.
The plan to penetrate the high-consumption Chinese market
complements MoneyGram's strategy to boost its money transfer
volumes by global network expansion. On the other hand, this
service will grant the working rural population the access and
convenience of money transfer. According to the World Bank, China
generates over $60 billon in money remittances across 150
countries globally, thereby holding the second largest
MoneyGram continues to bolster its position as one of the
leading money transfer companies in the world by constantly
expanding its payment network via alliances. Adding to its agent
network in this month itself, the company joined forces with
Chile's postal system - CorreosChile and Malaysia's rapidly
growing remittance company TML.
MoneyGram also announced strategic deals with online foreign
exchange specialist OzForex to offer its money transfer services
across Australia and New Zealand, thereby attempting to capture
the $500 billion global remittance market, which is expected to
amplify, given the increasing number of immigrants in these
Simultaneously, MoneyGram is also enhancing its brand
awareness by developing user-friendly payment solutions that suit
the new market trends. In this regard, the company offers various
self-service products such as mobile, kiosk and online money
transfer payment processes.
Last week, MoneyGram also collaborated with Europe's leading
mobile telecoms operator - Lebara Mobile, to offer online money
transfer services through mobile devices. Such efforts are not
only creating demand for global remittances but also boost
the company's brand value and scope for financial growth.
While MoneyGram carries a Zacks Rank #4 (Sell), other
outperformers in the financial sector include
Euronet Worldwide Inc.
Columbia Banking System Inc.
). All of these carry a Zacks Rank #2 (Buy).
COLUMBIA BK SYS (COLB): Free Stock Analysis
EURONET WORLDWD (EEFT): Free Stock Analysis
MOODYS CORP (MCO): Free Stock Analysis Report
MONEYGRAM INTL (MGI): Free Stock Analysis
To read this article on Zacks.com click here.