MoneyGram plans to restructure its executive lineup and other aspects of its organization as it works to expand consumer-facing services and manage its investments in anti-fraud and compliance programs.
MoneyGram says these changes will be key factors in its ability to reach the company's goal of $2 billion in annual revenue by 2017.
The Dallas-based money transfer and payment service company says it expects to spend $80 million to $90 million for enhancements to anti-fraud and compliance programs over the next three years. Since 2009, the company says it has invested more than $120 million in compliance and anti-fraud efforts, which in turn have prevented more than $365 million in fraud losses, with $135 million alone in 2013.
In addition, MoneyGram intends to pursue its multi-channel strategy for consumers through investments in MoneyGram Online and mobile services, as well as account deposit and kiosk-based money transfer options, the company states in a Feb. 11 release.
MoneyGram will promote and expand self-service options to more markets as it aims to generate 15% to 20% of money transfer revenue from self-service channels by 2017.
To help reach these goals, MoneyGram says it has shuffled its executive lineup and will reorganize the company to increase operating efficiency.
W. Alexander Holmes has been named chief operating officer, while maintaining his current titles and responsibilities as executive vice president and chief financial officer. In addition, MoneyGram named several new executive vice presidents in various business lines W. Alexander Hoffmann in global product management and emerging channels; Grant Lines in Asia Pacific, South Asia and Middle East; and Peter Ohser in U.S. and Canada. MoneyGrams chief compliance officer, Phyllis Skene-Stimac, has joined the company's executive committee.
"The actions we are taking today are designed to make MoneyGram a more profitable enterprise that is better positioned to compete in today's changing world," Pamela H. Patsley, MoneyGram chairman and chief executive officer, states in the press release.
In fourth-quarter earnings reported Feb. 11, MoneyGram posted total revenue for 2013 at $1.5 billion, an increase of 10% over the previous year.
For the fourth quarter, MoneyGram reported $386 million in total revenue, an increase of 9% over the fourth quarter of 2012.
"2013 was a great year for MoneyGram," Patsley says. "We exceeded the outlook we set at the beginning of the year and achieved double-digit money transfer transaction and constant currency revenue growth."
In addition, MoneyGram set up services for consumers using PayPal accounts and initiated a partnership with Nexxo Financial to obtain Nexxo's kiosk-based money transfer business and work together on bill payment systems.
MoneyGram says it now offers money transfer services through a global network of 336,000 agent locations including retailers, international post offices and financial institutions in more than 200 countries and territories. MoneyGram also offers bill payment services in the U.S. and Canada.