In order to further bolster its vast global network of money remittance facilities, Moneygram International Inc. (MGI) has added Banco Ganadero, Bolivia’s largest bank based out of Santa Cruz, the hub of the country’s banking community. The money transfer services will be made available across almost 600 locations in Bolivia.
Per the agreement, the customers of the bank will be allowed to remit money to and from the company’s network. MoneyGram has already commenced its services at 30 bank locations, starting early last month.
Following the announcement of the deal, the company’s shares rose 2.45% (or 39 cents) to close at $16.32 yesterday. We believe by expanding its services across a large number of locations, MoneyGram will not only reduce its operational risk but also strengthen its avenues of income.
MoneyGram has been on an expansion spree for quite some time now. It has collaborated with foreign currency exchanges like Casa de Cambio Angulo Lopez and Venegiros Casa de Cambio for expanding its money transfer network across Venezuela.
MoneyGram also partnered with the State Bank of India (“SBI”) to augment its presence in the sub-continent. It also renewed its contract with Advance America and Coppel early this month to facilitate the transfer of money through a large number of locations.
One of MoneyGram’s major competitors, Western Union Co. (WU), is also 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.Read the Full Research Report on MGI
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