'Reputation is our biggest asset'

BANKER SPEAK: CHRISTINA GOLD

, Gold talks about Western Union's India growth plans. Excerpts:

How is the Western Union's Indian business performing and what are your plans for India?

Western Union operates in 200 countries, with 3,12,000 agent locations. We are present at 45,000 locations in India. The company has been focusing on its India operations in the last six years. We have doubled our agent locations in just two years.

Our business in India has grown at a rate of 95 per cent on a quarter-on-quarter basis for the last six consecutive quarters. India is among the top 10 countries in terms of transactions. India and China contribute around five per cent to our revenues. This number was about 1 per cent three years ago. India has been the number one performer across 200 countries.

Our brand awareness in India has increased to 78 per cent from about 24 per cent in the last five years. We have a working relationship with the top eight banks in India, which include State Bank of India. We also have a tie-up with the Indian Post. We are identifying opportunities in the Indian market. We would enter the rural centres in association with post and other agents. Would your business growth be affected by the entry of banks into the remittance business?

We are very happy with our growth. We are among the top 100 brands, with 3,12,000 agents. Our presence spans 200 countries, with the total market share having risen to 17.4 per cent in the last three years. The worldwide remittances have increased at the compounded annual growth rate of 8 per cent. Western Union has increased by 24 per cent, which is three times the market.

We offer superior pricing and speed. High pricing does not deter a customer from using Western Union as the number of our operating locations gives us an edge. Our customers do not have to travel far to collect their money.

On the pricing front, we are competitive. We have reduced our pricing in India. Pricing is driven by opportunity and not competition. Western Union invests around 3.5 per cent of its total revenues in pricing. Our aim is to drive more principle and more volumes, which can help bring down the costs.

The total average principle is higher in India compared with China. The prices have rationalised in specific corridors such as the Gulf region in the last few years. The key corridors for India are West Asia, United Kingdom, Canada and United States.

New corridors are emerging. The remittances flowing into south India from countries such as Malaysia and Singapore are on the rise. Italy is another potential corridor for India. What is Western Union doing to cope with the increase in money laundering?

Reputation is our biggest asset. Western Union invests around $35 million a year in building compliance capabilities. Technology to monitor transactions in real time has been developed by us. We are present in 200 countries and work with regulators worldwide. It is very important to work towards moving people out of the hawala network into the institutional framework.