Fortifying its money transfer network in Italy,
MoneyGram International Inc.
) inked a strategic alliance with the country's postal service
provider − Poste Italiane (Italian Post Office). The association
will add 9,000 locations to the company's over 327,000 global
agent network in over 200 countries.
The Italian Post Office is the backbone of Italy's financial
and letters-mailing system, connecting to over 37 million clients
via 9,000 offices across the country. It offers regular postal
services as well as related financial, insurance and mobile
telephony services to individuals and organizations, reaching out
to the remotest of unbanked or under-banked areas.
MoneyGram is in the process of evolving advanced ways of
consolidating its operations in Italy. The country's remittance
market was worth €6.8 billion in 2012 and is expected to grow
rapidly, according to statistics delivered by the national bank
of Italy - Banca d'Italia (Bank of Italy). The rising number of
immigrants and citizens, who send money to and from countries
like China, Philippines, Romania, Senegal, Morocco, Poland, India
and Albania are only projected to grow higher, going ahead.
Post offices across the globe have become a strong platform
for money transfer, pensions, savings and other basic banking
services. Hence, MoneyGram has been able to tap even the rural
and undeveloped markets of countries such as Uganda, Tanzania,
Pakistan, India, South Africa, Canada, UK and Kazakhstan, among
others, by allying with various their national post offices over
the past few years.
We believe such alliances will not only boost MoneyGram's
leading global market position but will also accelerate its
organic growth by boosting its money transfer business.
Simultaneously, these efforts will also enhance demand for global
remittances and boost the company's brand value.
While MoneyGram carries a Zacks Rank #4 (Sell), strong peer
Fleetcor Tech Inc.
) holds a Zacks Rank #1 (Strong Buy). Other outperformers of the
financial sector include
CIT Group Inc.
Global Cash Access Holdings Inc.
), both of which carry a Zacks Rank #2 (Buy).
CIT GROUP (CIT): Free Stock Analysis Report
FLEETCOR TECH (FLT): Free Stock Analysis
GLOBAL CASH ACS (GCA): Free Stock Analysis
MONEYGRAM INTL (MGI): Free Stock Analysis
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