MoneyGram International SWOT and PESTLE Analysis

Strength

1. Broad portfolio of physical and technology based money transfer services: MoneyGram is a leading provider of innovative financial solutions leveraging global financial technology worldwide. They help connect friends and relatives through its money transfer services which run through an omni-channel network offering unparalleled choice and convenience. Apart from money transfer services, MoneyGram’s portfolio includes bill payment services, money order services and official check processing. The Company’s money transfer services are its principal cash cow driving lion’s share of the revenues.

2. Global operations in more than 200 countries: MoneyGram’s has its services footprint spread across their physical and digital network which is available in hundreds of countries and territories. Via multiple channels be it mobile application, web portal - moneygram.com, integration with mobile wallets, a kiosk, or any one of the thousands of agent locations in more than 200 countries and territories, it connects customers in multiple ways that best suits their need and convenience. MoneyGram extends its digital orbit across 64 countries and approximately 350,000 physical locations that fall under its ambit. These are primarily run by third-party businesses and a limited number of Company-operated retail locations.

3. Strong technology infrastructure and digital capabilities: MoneyGram has established strong technology infrastructure in 2018. Its major technology upgrades include, Fully API-driven, Modern service-oriented architecture, virtualization of servers as part of cloud readiness, usage of customer-centric, cloud based tools, continuous event monitoring with best in-class tools, predictive analytics and dashboards and robotics process automation. The company has also enhanced digital capabilities with its new money transfer app which has increased the user base by over 500% since launch. Its digital coverage across markets also grew from 3 countries having online access at the beginning of 2018 to 24 countries having online access by end of 2018. Its mobile app was also available in 15 markets by the end of 2018. The strength of MoneyGram’s technology infrastructure and capabilities has put it amongst the best in class in its peer group.

Weakness

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Opportunity

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Threat

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Political

1. Impact of Brexit on operations: Global markets experienced turbulent winds with the 2016 referendum by British voters to leave the European Union (Brexit), which was followed by UK’s announcement to officially divorce from the European Union in March of 2019. This was met with additional uncertainty in global markets and currency exchange rates. Exit deal, trade, tariff, regulatory conditions and negotiations at the time of final exit will determine the long-term impact that Brexit will have on MoneyGram’s business. As the UK is scheduled to exit the European Union in fiscal 2019, MoneyGram anticipates making a number of operational changes to accommodate any potential business impact.

2. Political crisis and wars causing migration: Fragility and conflict are the undisputed key drivers fueling the migration crisis. In 2016, the number of refugees globally became phenomenally high, touching 16.5 million, close to the post-War high of 17.8 million seen in 1992. As highlighted by research data carried out by World Bank in 2016, developing countries shelter 89 percent of the globe’s refugees. As of 2019, the Middle Eastern region continues to witness political turbulence, especially in Syria and Yemen. Thrown in the ire of challenging ecosystems, be in the form of violence, religious intolerance, drought and famine, refugees from South Sudan are fleeing into other parts of Africa. The plight of these migrants taking refuge in foreign locations cause an increase in remittance flows from their migrant locations to their home countries, increasing the growth opportunities for companies such as MoneyGram.

Economic

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Social

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Technological

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Legal

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Environmental

1. Focus on building a sustainable business and brand: Consumer perception and consumer behaviour towards eco-friendly, or “green,” brands have touched all-time high. As per a research report by Natural Marketing Institute (NMI) in 2015, 85% of United States population can be deemed, at least to some extent, accepting of sustainable practices. GlobeScan in its 2016 global study finds that the world’s Aspirational consumers (who support purposeful brands - which stand for something bigger than product benefits) constitute about 40% of the total section. By leveraging digital technologies, MoneyGram can focus on building a green and sustainable business platform which will help it to increase customer loyalty. This will also help it to reduce its carbon emissions and be a sustainability leader amongst its peers.