To fortify its presence in Eastern Europe,
MoneyGram International Inc.
) has penetrated the Bosnian market by inking an agreement with
Nova Bank. As per the deal, customers of the bank will be able to
use MoneyGram's international network to transfer money to and from
the bank's 40 branches in Bosnia.
The agreement is expected to significantly expand MoneyGram's
customer base and boost its money transfer transaction volume as
Bosnia is the second-largest market for money transfer in Eastern
Europe. The country has over one million citizens living abroad and
holds the 12
rank in terms of the proportion of population living abroad,
according to the World Bank.
Bosnia receives a large amount of money transfers from Austria,
Germany, Switzerland and the U.S., which can be tapped by
MoneyGram. The citizens are witnessing a surge in their money
transfer options following legislative changes in the country.
The addition of Nova Bank will also strengthen MoneyGram's agent
network. The bank is one of the leading financial organizations in
Bosnia and has been operating in the country since 1999.
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. Recently, the company
added Banco Ganadero, Bolivia's largest bank, to its network. The
agreement added 600 new locations to MoneyGram's network. Moreover,
the renewed contract with the leading Vietnamese bank, Vietcombank,
will enable the people of Vietnam to send and receive funds,
contrary to the earlier contract which only permitted receiving
Similarly, one of MoneyGram's major competitor,
Western Union Co.
), is aggressively expanding its global footprint. Recently, it
announced an agreement with Veridian Credit Union to serve its
members with global money transfer facilities. It also signed an
agreement with Michigan-based Citizens Bank to provide its global
remittance services to Citizens Bank customers via 219 of its
branches across Ohio, Michigan and Wisconsin.
MoneyGram currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term 'Neutral' recommendation on its shares.
MONEYGRAM INTL (MGI): Free Stock Analysis
WESTERN UNION (WU): Free Stock Analysis Report
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