The Hindu Business Line : Western Union finds good biz in rural, semi-urban areas

Chennai, May 21 Western Union Services India (Pvt) Ltd, the money transfer company, finds about 60 per cent of its business emerging from rural areas and semi-urban pockets in India, Mr Anil Kapur, Managing Director, said.

That is making the company change its marketing strategy and target many potential customers in rural areas. ‘Catch them before they leave the country,’ is the motto, Mr Kapur said.

For instance, their marketing campaigns are now focussed at the railway stations and bus terminals in interior Punjab, as a number of such folks are moving abroad from these towns and villages.

Cross-selling

Sounding optimistic about growth prospects (revenue grew at 70 per cent last year), Mr Kapur said Western Union had tied up with a number of banks as well as the India Post.

These institutions were able to exploit cross-selling opportunities apart from the fee income that they get for such money transfers, he said. He said the company was a significant player in the remittance business to India, with agents in 50,000 locations compared to about 3,000 in the year 2001.

According to the Reserve Bank of India, remittances into India in the last year were about $29 billion, making it the highest remittance receiving country in the world.

Mr Kapur refused to reveal Western Union’s remittance figures or its share in the market.

(It is known that State Bank of India and ICICI Bank together control about half the remittance market).

He said the biggest advantage that Western Union had over its rivals in the remittance business was the wide reach and quick transfer of funds to the beneficiary (often within 10 minutes) as compared to anywhere between three days and two weeks for transfers through banks.

Asked about competition from online remittance portals, Mr Kapur dismissed them as of little consequence. Mr Kapur said that their charges had also come down over the last few years.

Five years ago, a transfer of $1,000 from New York to Mumbai would have cost $39. Today it would be $15, he said.

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