MoneyGram (MGI) entered into a partnership agreement with a leading bank in Bosnia-Herzegovina and the pan European region – Intesa San Paolo Bank to expand its money transfer network in Bosnia. Through the deal, MoneyGram intends to provide international money transfer services at above 50 branch locations of the bank across the country.
The agreement with Intesa San Polo Bank will allow MoneyGram’s Bosnian facility with an opportunity to increase its existing money transfer network to above 100 locations across the territory within a year of foraying into the Bosnian market.
At present there are above 1 million Bosnians living and working outside the country who require convenient money transfer to their families in Bosnia. MoneyGram thereby has enough opportunity to build its network and services in the country. The partnership with Intesa San Paolo Bank allows the company to grab this opportunity and adds to the company’s prospects of expanding and fortifying its network in the country.
On the other hand, the deal is beneficial for Intesa San Paolo Bank as the availability of MoneyGram’s money transfer services at their branches will help its customers to send or receive money around the world. It would thereby increase the customer base of the bank.
MoneyGram has been working towards enhancement of its money transfer services. Towards this end, in Apr 2013, the company joined hands with a leading online cash payment provider in U.K. named Ukash that has more than 460,000 points of sale across 57 countries. Initially, the services will be launched in U.K. in 2013 and will subsequently be expanded to other markets.
In the first quarter of 2013, MoneyGram’s revenues increased 7% year over year to $340.5 million. Going forward, we expect the company endeavors towards expanding its network and acquiring more customers to enhance revenues further.
In Apr 2013, another industry major, The Western Union Company (WU), inked a five-year agreement with a Mexican financial and retail services institution – Bancoppel to enhance its money transfer business. The deal aims to allow Bancoppel to offer Western Union global money transfer services.
MoneyGram currently carries a Zacks Rank #4 (Sell). Among others in the industry, FleetCor Technologies Inc. (FLT) and Moody’s Corp. (MCO) carry a favorable Zacks Rank #1 (Strong Buy) and are worth noting.