“Digitization has helped support remittance market continuity in the face of reduced mobility. We also believe money transfers relying on informal or unregulated routes are converting to formal money transfers, and may even help stabilize the market as travel restrictions likely remain.”
Markets are seeking stability, though not necessarily finding it, as business essentially “feels” its way forward in a bizarre, post-pandemic topography. “Trust is paramount for customers and clients when dealing with financial flows. Now more than ever, it is a particularly important time to listen,” said Shelly Swanback, president of product and platform at Western Union. “Listening helps us understand all the factors that influence decisions — today, tomorrow and also for the future. It enables the translation of this intelligence into real solutions that serve current or evolving needs, whether servicing them through digital or physical channels.”
The following is an excerpt from How 35 Execs Are Powering The Great Digital Shift Of 2020 (And Beyond), contributed by Shelly Swanback, president of product and platform at Western Union.
At Western Union, this crisis has reaffirmed what we have always valued: The work done at every level across the world economy is important and inextricably linked. If this pandemic has taught us anything, it is that no life or livelihood is expendable. The term “essential” took on new meaning as discussions moved from board rooms into Zoom rooms.
Western Union is already showing up differently in the market. In addition to serving our customers within our own ecosystem, we have opened our cross-border, cross-currency platform to enable third parties, including banks and other financial institutions (FIs), to tap into our cross-border platform to provide a seamless experience to their customers.
Market disruptions create business opportunities as well as risks. The crisis has further elevated digital transfers, and we are pleased that the digital strategy we accelerated has allowed us to facilitate that shift for our customers. However, the world is much bigger than only developed markets where digital payments are increasing. There are many economies still heavily reliant on cash, and it is important that we serve consumer and business needs in this significant part of the global economy.
Our business trends show that the flow of money and payments between individuals continues due to their essential nature in keeping economies going. Digital solutions for sending money have seen growth accelerate during the COVID-19 pandemic, with many new digital consumers likely to shift permanently. Digitization has helped support remittance market continuity in the face of reduced mobility. We also believe money transfers relying on informal or unregulated routes are converting to formal money transfers, and may even help stabilize the market as travel restrictions likely remain.
Consumers are highly motivated to support families and loved ones, and are typically resilient in their efforts to do so. Money transfers for savings and investments have experienced pullback as the need to support essential living costs takes priority. Concurrently, our business customers continue to keep ahead of market vagaries while keeping up with the changing market landscape.
As we talk about what “recovery” might resemble or what version of “normal” we’ll go back to or move toward, it becomes clear that our purpose and values will ultimately shape this chapter’s outcome in our collective history.
Western Union is moving forward with a mindset grounded in collaboration, cooperation and innovation. We continue to place a high premium on connecting people, communities and businesses — so that the global economy creates more opportunities and leads to more inclusive societies, despite the rhetoric of slowing globalization.
Trust is paramount for customers and clients when dealing with financial flows. Now more than ever, it is a particularly important time to listen. Listening helps us understand all the factors that influence decisions — today, tomorrow and also for the future. It enables the translation of this intelligence into real solutions that serve current or evolving needs, whether servicing them through digital or physical channels.
Read more executives’ insights in How 35 Execs Are Powering The Great Digital Shift Of 2020 (And Beyond).