MoneyGram and Federal Bank tie up remittance partnership
MoneyGram Payment Systems has signed a partnership agreement with India-based Federal Bank to offer a direct-to-account remittance option for its customers in the region.
Through this partnership, according to the two companies, millions will be able to receive deposits directly in their bank accounts “without leaving the confines of their homes.”
During the ongoing coronavirus pandemic, the two partners believe the system solves an “imperative” need in the market.
India is reported to have received $82 billion in remittances in 2019. Federal Bank enjoys a market share of more than 15% of the remittance market in the country.
“Non-resident Indians can now enjoy a modern, low cost, fast, easy and more reliable way of transferring money to India,” says Shalini Warrier, executive director at Federal Bank.
“Being a leading player in the remittance and non-resident space, we are confident that this tie-up with MoneyGram will provide huge benefits to customers.”
Federal Bank, a private bank founded in 1931 as Travancore Federal Bank, has a customer base of more than 10 million people and operates 1,261 branches.
In 2019 it reported an operating income of $390 million and assets under management of $22 billion.
In 2017 it selected Intellect Design Arena’s digital transaction banking (DTB) platform as part of a technological revamp programme.
“Federal Bank is known throughout India as a pioneer in digitizing financial services” says Grant Lines, MoneyGram chief revenue officer.
“This partnership is especially important during this ongoing COVID-19 pandemic so families can receive money from the comfort of their own home.”