Western Union to ride on agency banking to grow footprint in Kenya

Global payments firm Western Union is in plans to revamp operations in Kenya with the aim of simplifying transactions to mirror mobile money and increase its distribution points through use of banking agents.

It expects the move to help it tap into growing regional remittances, noting that Kenya is emerging as a critical hub and source of remittances to other countries.

The firm said it would introduce its Western Union Digital Service in the country as well as other African countries by 2020, which would enable users transfer money directly to a recipient’s bank account.

Odilon Almeida, president of Global Money Transfer at Western Union said the service would be simplified to ease receiving money sent from abroad as well as cross-border transfers.

Digital services “Transactions will be easier and look more like mobile money,” he said in Nairobi on Friday. “We will be expanding our digital services to all African countries in the next three years (and) if you look at Kenya today and in three years, it will be much different.”

The firm also plans to expand the points of sale in Kenya by use of agents of its partner banks. Western Union’s points of sale are largely restricted to banking halls. “There is opportunity to increase our points of sale in Africa, which is an opportunity that we do not have in other regions. In Kenya, we will work with the agents of our partner banks to increase the distribution points,” said Mr Almeida.

The move, he noted, will position the firm to tap into growth opportunities in the region. Western Union expects the amount of money remitted from Kenya to other countries to increase at a faster rate compared to inward remittances.

SOURCE:STANDARD MEDIA