The outbreak of Covid-19 has prompted a boom in online money transfers as a result of widespread lockdowns. Western Union's head of network for the Middle East and Asia Pacific tells finews.asia how the company kept its services reliable and accessible to a broad spectrum of consumers during this period, and discussed how she sees the remittance space evolving.
«There has been a massive uplift in digital transactions in the remittance world,» Sohini Rajola said about the changes she has observed in the remittance landscape with the onset of Covid-19. Western Union's digital business grew 77 percent in April and 49 percent in May, she said.
«But what hasn't changed is equally important, and that is the reasons people send money back home: to support their families and communities, and for savings,» Rajola added.
She noted that remittances play an important role in the economic machinery of the receiving countries, and that cross-border transfers in the Asia Pacific region have been «particularly active» during the lockdown period.
More Digital Services
Western Union has a reputation as a traditional brick-and-mortar money transfer service, but the firm earned more than $600 million in revenue from digital remittances alone last year, with the service offered in 75 countries.
During the «circuit breaker» period in Singapore, Sohini said the company kept its agent locations open, in addition to expanding digital services via WU.com and its mobile app.
It also launched «Digital Location» – a facility for customers to initiate money transfers by calling then depositing funds at an ATM, cash deposit machine or by bank transfer, and set up roaming remittance facilities at the Floating Dormitory and the PSA terminal for migrant workers housed in those facilities, and offered zero money exchange fees for international money transfers.
Longer-Term Strategy
The company hopes to continue on its pivot to digital and plans to open up its platform to third parties, so they can access the Western Union backend to make remittances more accessible to other large players like fintech firms.
She is not fazed with the increased competition from new digital entrants to the money transfer landscape. «Competition is good as it puts pressure on us to improve, and it's great for customers too,» Sohini said.
«It's really easy to build a technology platform, but it is important that regulatory and compliance requirements are met in every jurisdiction on a consistent basis, while keeping transactions transparent for customers. That's why they trust us and stick with Western Union as a brand,» she added.
