Last week, MoneyGram International Inc. (MGI - Analyst Report) collaborated with Fuzhou Rural Commercial Bank (Fuzhou RCB) in an effort to further expand its money transfer services in China. Fuzhou is one of the largest cities of Fuji in China.
The addition of Fuzhou RCB along with the recent alliances in Romania, Portugal, Tanzania and Uganda, among others, has escalated MoneyGram’s global agent network to 327,000. The bank also aims to expand its money transfer network via MoneyGram into the cities of Fuqing and Changle, further raising the growth potential for the company.
According to the World Bank, China is the second largest hub of the significant remittances with estimated money transfers worth $60 billion from about 150 countries globally. Thus, China’s position in the world money market ensures a cyclical money flow.
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. Simultaneously, the company 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.
Such efforts are not only creating demand for global remittances but are also boosting MoneyGram’s brand value. The effects of its consistent growth strategies were also visible in the company’s recently announced second-quarter 2013 results.
MoneyGram has been gaining traction with the steady momentum in money transfer transaction revenues that increased 13% in the last reported quarter, showcasing double-digit growth for the 9th consecutive quarter. Further, global agent locations increased 15% over the prior-year quarter.
Led by diversified and market-compliant growth strategies, MoneyGram aims to continue achieving double-digit growth in money transfer transactions and increasing free cash flow.
While MoneyGram carries a Zacks Rank #3 (Hold), other outperformers in the financial sector include Fleetcor Tech Inc. (FLT - Snapshot Report) , Global Indemnity Plc and Glacier Bancorp Inc. (GBCI - Snapshot Report) . All of these stocks carry a Zacks Rank #1 (Strong Buy).