 "Nearly 50 mn SMEs are in India to tap: Kerry Agiasotis")
The doorstep payment service of Western Union, the world’s largest money-transfer company, can now be used across the globe, Kerry Agiasotis, president and global managing director, Western Union Business Solutions, says in an interview with Nupur Anand. Edited excerpts:
In India, you have been very cautious. Why?
We announced our business plans last year, but started operations only early this year. We are looking at a client base of 1,000 by next year. It is a small number; we are taking a measured approach and being cautious. Once we get to a particular point, we can open the floodgates and scale it up. There are about 50 million small and medium enterprises (SMEs) here. So, it will become a big marketplace. We are trying a different and an innovative business model in India and so, want to progress cautiously.
How is the business model in India different from that in other countries?
Has the new business model worked?
Yes, it has. The model we are building here is proof that we can take our business to a lot of other people, too. Western Union is in every part of the world and the more we leverage the distribution faster, the better it is for the growth of the business. Later, we can think of taking it to other places as well.
How is this business commercially viable for you but not for banks?
Being an organisation that is very focused on payments and remittances, we have been able to create a model that makes sense in terms of operations and scalability. We have been able to leverage our strength, as Western Union is present in every country. The scale allows us to move money more cheaply and effectively than any other banking provider. Essentially, intellectual property on how to move money and technology has helped us and given us the edge.
Banks have also been increasing their focus on the SME sector. So, has competition increased?
It definitely has. But due to our efficiencies and lower prices, customers are benefiting and we are getting payments to beneficiaries faster. As we move forward, we will have to try and provide in India all the services we have been providing in 30 other countries. These will be value-added services, an extension of payment services.
In India, you have been very cautious. Why?
We announced our business plans last year, but started operations only early this year. We are looking at a client base of 1,000 by next year. It is a small number; we are taking a measured approach and being cautious. Once we get to a particular point, we can open the floodgates and scale it up. There are about 50 million small and medium enterprises (SMEs) here. So, it will become a big marketplace. We are trying a different and an innovative business model in India and so, want to progress cautiously.
How is the business model in India different from that in other countries?
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We provide doorstep financial services to SMEs, a big community in India. We haven’t done this in any other market. We decided to come here with a slight twist. This was to leverage the power of Western Union and use its pervasiveness. In India, Western Union is everywhere; it accounts for 20 per cent of our global locations. So, we decided to use the distribution and do something similar in the business remittance space, too. Banks have not been able to do this very successfully, as this hasn’t been commercially viable for them. Therefore, we decided to seize that opportunity. That a non-bank is taking up a banking service in international payments and foreign exchange hasn’t been seen earlier.
Has the new business model worked?
Yes, it has. The model we are building here is proof that we can take our business to a lot of other people, too. Western Union is in every part of the world and the more we leverage the distribution faster, the better it is for the growth of the business. Later, we can think of taking it to other places as well.
How is this business commercially viable for you but not for banks?
Being an organisation that is very focused on payments and remittances, we have been able to create a model that makes sense in terms of operations and scalability. We have been able to leverage our strength, as Western Union is present in every country. The scale allows us to move money more cheaply and effectively than any other banking provider. Essentially, intellectual property on how to move money and technology has helped us and given us the edge.
Banks have also been increasing their focus on the SME sector. So, has competition increased?
It definitely has. But due to our efficiencies and lower prices, customers are benefiting and we are getting payments to beneficiaries faster. As we move forward, we will have to try and provide in India all the services we have been providing in 30 other countries. These will be value-added services, an extension of payment services.