Allying with DenizBank, MoneyGram International Inc. has once again fortified its roots in Turkey. Accordingly, the company will provide its money transfer services in all the bank’s branches across the country.
Formed in 1997, DenizBank provides investment banking, brokerage and leasing services to its clients. Expansion into Turkey will now strengthen MoneyGram’s footprint within Europe as well.
Further, MoneyGram will be able to offer its money transfer services to all the citizens of Turkey through DenizBank’s platform, even in the absence of an account with the bank. Hence, the company’s partnership with such leading financial institutions adds value and convenience to its existing customer base and also helps in network expansion.
Growth prospects for MoneyGram is also validated by the World Bank, who estimated Turkey’s remittance market to be worth $1.0 billion. The citizens of Turkey send and receive money to and from countries such as US, UK, France, Netherlands, Belgium, Germany and Russia. Being the second largest provider of international remittances, MoneyGram intends to grow by delivering better value to its customers and utilizing the potential offered by a market as large as Turkey.
Such alliances help MoneyGram unlock valued growth opportunities through various self-service products such as mobile, kiosk and online money transfer payment processes, while ensuring safe and user-friendly payment solutions across the globe. We believe that expansion through such organic strategies is expected to drive MoneyGram’s growth in the medium- to-long-term. Such strategies also justify management’s revised top-line growth guidance of 7−10% for 2013, up from the prior estimate of 6−9%.
MoneyGram’s financials are expected to improve in the upcoming quarters, driven by double-digit growth in money transfer services and accelerated network expansion, thereby boosting cash flow and 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. and Global Cash Access Holdings Inc. , both of which carry a Zacks Rank #2 (Buy).