Recently, The Western Union Company (WU), a leading financial services and communications business has inked a five-year agreement with a Mexican financial and retail services institution – Bancoppel. The deal allows Bancoppel to offer Western Union global money transfer services.
As per the deal, Bancoppel will provide Western Union services at about 1,000 locations across Mexico. However, initially the services will be offered at select locations and gradually will be available in all other locations.
The liaison will help Western Union to target the 22 million customers of Bancoppel thereby enhancing its clientele base. The company will combine its expertise and knowledge to provide innovative and advanced services to the prospective clients. Bancoppel’s focus on providing customized services to its clients by understanding their needs will also expose mutual customers to a wide range of high quality financial services.
Western Union in consortium with its Vigo and Orlandi Valuta brands provide service worldwide through more than 510,000 Agent locations across 200 countries and territories. The combined network of agent locations consists of banks, national retail chains and independent locations.
However, Western Union’s Mexican operations suffered a loss of more than 7,000 agent locations in 2012. The loss was because of the changes in its compliance related activities on account of a deal with the State of Arizona. The business model modification and price reductions also led to the decline. The company now aims at recouping its business in Mexico through the partnership with Bancoppel.
Partnerships undertaken by the company aim to comply with its business expansion objective. Previously, in order to expand its Argentinean footprint, the company entered a money transfer and bill payment agreement with a leading retailer in the country – Carrefour Argentina, in Feb 2013.
Western Union currently carries a Zacks Rank #3 (Hold). Among others in the industry, Weight Watchers International Inc. (WTW) carries a favorable Zacks Rank #1 (Strong Buy) while H&R Block Inc. (HRB) and American Express Company (AXP) carry a Zacks Rank #2 (Buy).
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