- A range of new partnership initiatives has been announced by Western Union, including an expanded range of forex and other key services
- Indications were made of financial position, including significant cost savings from a restructuring as well as ambitious margin goals for the next three years
- "Our resilient business gave us the opportunity to develop the long-term vision and three-year financial targets we’re unveiling today", says WU’s CEO
Leading online money transfer name Western Union has made public its plans to make the most of its cross border payments capacity over the course of the next few years.
The firm said in its most recent company announcement that it would embark on a series of changes and implement a range of new initiatives to achieve this goal.
In the same release, the firm also revealed some insights into its longer-term financial plans.
It said that it would aim for an operating margin of 23% in three years’ time, and that it would aim to have a compound annual growth rate that would be in the lower end of the double-digit range.
It said that it would be saving a lot of cash for a wide range of reasons, including a restructuring which would save it $100 million.
The firm also intends to open up a range of new partnerships with the intention of helping e-commerce organisations to expand into markets around the world.
It also wants to provide institutions with forex services and intends to take a problem-solving approach to organisations currently facing issues with their cross border payment provision.
Somewhat vaguely, press reports also indicated that WU would provide additional financial products for consumers – although no details were given of what this might entail.
According to the firm’s CEO, Hikmet Ersek, the organisation is a “resilient” one – and that it offers services on an “unmatched global scale”.
"Our resilient business gave us the opportunity to develop the long-term vision and three-year financial targets we’re unveiling today", he said.
"Going forward we expect to drive additional profitable growth for shareholders and more value to customers through new products, expanded service offerings and partnerships that leverage our industry leading capabilities, powered by a unique cross-border platform of unmatched global scale.”
This news from Western Union is unsurprising: after all, the world’s most famous cross border payments company was always going to have ambitious goals.
Those who are surprised to hear that the company has restructured recently shouldn’t be too worried.
It’s common practice for large corporations to do this, and it doesn’t indicate that WU is in financial trouble.
In fact, judging by their margin aims, there’s minimal risk of them being in dire straits.
On the whole, this forward-looking and innovative statement is one for the firm to celebrate.
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