Our research identified 10 attributes of an organizations data infrastructure that enable it to take full advantage of the data economy, the global supply and, Editors note: This is part of a series about the data economy. They can include creating strategy placemats (one-page strategy overviews that are easily shared), frequent team huddles, one-on-one coaching, and process confirmation. Western Union is trying to use Blockchain as an incremental or modular innovation, when in fact it could be an architectural orradical innovation (see chart below) introducing entirely new businesses that fit well into Western Unions existing capabilities. Mazzaferro: Snowflake is enabling quite a bit around analytics, reporting, event triggers, and settlement across our card providers. Many of its 150 million customers worldwide depend on money transfers to pay for food, electricity, medication, and other necessities. Funds can be picked up in cash at half a million Western Union agent locations worldwide or transferred electronically to the recipients bank account or to a debit card linked to a digital wallet. To address this new competitive landscape, Western Union sought an agility boost to accelerate innovation. Youre now a year into your role as CMO and leading through a prolonged global crisis. People are asking us, Hey, can you come help me? There was a need to accelerate the process we wanted to undertake, I have that experience of transformation projects happening on a massive scale. The company wanted to improve the digital experiences offered to customers and build new digital bankingproducts to extend its relationship with customers. Mazzaferro: Keep it simple. What does "digital transformation" mean to Western Union? Part of this agility drive involved Western Union migrating its legacy on-prem IT infrastructure to the Cloud. How Your Small Business Can Be Managed With The Right Databases, Why Businesses Must Focus on Introducing Technology in the Workplace. Western Union has the infrastructure to help make that a reality. Technology powers the data economy. As an iconic brand for over 150 years, Western Union is constantly striving to innovate for their customers. Western Union Digital Banking is offered by Western Union International Bank GmbH. It's a physical branding and marketing component that few money-transfer providers can match - but one that's of diminishing value in a digital world. WU's platform provides seamless cross-border flows, and its leading global financial network bridges more than 200 countries and territories and over 130 currencies. The international roll-out continues to other countries at pace. . Poland followed later in 2022, while plans are at hand to launch Italy by the end of the year. Technology or Operations transformation . . One of these customers is Tom Mazzaferro, Chief Data & Innovation Officer of Western Union, which serves more than 100 million global customers through approximately 600,000 retail locations, and via its digital platforms. Recipients can choose to pick up the sent money at a Western Union location, or send the money to a digital wallet or bank account. today more than 65% of Western Union's digital transactions originate on a mobile . Leading fintech, Mambu, provides the platform and engine that drives the core of Western Union's new digital bank. Western Union is renowned for its unparalleled international network, with over 500,000 agent locations spanning 200 countries and territories. Meanwhile, innovators like Ant Financial(China) and M-Pesa(Kenya) are leveraging high mobile penetration rates in emerging markets, and are beginning to experiment with cross-border money transfers. For more details about how Western Union went from 34 on-prem data warehouses to pursuing a multi-cloud strategy based on Snowflake, read our case study. [12]Josh Constine, Western Union Brings Money Transfer and Its Tricky Fees to Chat Apps, TechCrunch.com, Feb. 4, 2016. Please enable Javascript to see this feature. InsurTech & Crypto projects as the world embraces CX, Business Transformation and Digital . My team and I had thought of the future being digital, of course, but the pandemic really forced us to make it a reality for the business. These strategies are paying off. Why Do Companies Choose to Outsource Work? All of that is dependent on people in the organization putting resources behind this kind of an agile transformation. The development speedand deployment easeprovided by OutSystems accelerates change and feedback cycles, which paves the way for continuous innovation. The transition from legacy systems to Oracle Solutions was critical to the strategy's success. Korea, United Our App has grown to become one of the industrys most widely used international money transfer apps and a Top 20 finance app in the App Store., Not at all. Using OutSystems for customer-facing digital experiences, back office, and workflow solutions, Western Union launched new digital banking services in two countries in just 11 months. Garden, The Economist With a strong base of over 4 million customers and an established regional brand in the fast-growing digital wallet market, Western Union believes that stc pay is poised to experience strong growth in the future. In 2017 SEED supported 20 projects, impacting 5,000 children and youth; we hope to support event more in 2018.. There were definitely times I was looking at costs and thinking how I was going to explain to finance, or my CFO, he says. We have a lot of great ideas in terms of investments to drive that topline revenue growth, but we needed ways to fund those. Western Union operates in the increasingly competitive, rapidly changing payments sector, where new fintech players are changing how the market operates. SEED aims to improve education and employability of students from low socio-economic backgrounds, especially children of refugees, migrants, and local families. Behind those market-shaper practices are the lean tools and behaviors we develop and encourage. Dan Nordlander is senior vice president of Western Union Way Operations at Western Union, and Barr Seitz is senior manager of editorial and digital communications in McKinseys New York office. For example, De Beers is trying to create a diamond blockchain for registration and authentication, to prevent the spread of conflict diamonds. Beyond the public health crisis, COVID-19 has had a devastating impact on personal finances, causing poverty levels and inequality to rise globally. Digital transformation can refer to anything from IT modernization (for example, cloud computing), to digital optimization, to the invention of new digital business models. Dan Nordlander, senior vice president of Western Union Way Operations at Western Union, discusses his companys unique transformation journey with McKinseys Barr Seitz. What Ive tried to do is look at each of the groups and find out who the strong players in each of them are, the leaders that are vocal and very straightforward in conversation. The reason for that is due to the huge increase in demand for our digital services as lockdowns were implemented across many different geographies. Before OutSystems, we typically released every six weeks. Ericsson will help accelerate Econet's digital transformation journey. Western Union's digital transformation efforts may fail to drive earnings growth, but they may be enough to keep earnings steady going forward. Transformation, Cyber We wanted plug-and-play convenience to integrate any technology.. One of its most high-profile hires was Harveer Singh, who was appointed as Chief Data Architect & Global Head of Engineering and previously co-led EYs Next Generation architecture & solutions for Financial Services. We developed the whole front-end for the app in less than four months., Western Union uses OutSystems for customer-facing apps, back office, and workflow solutions. That system is fine in a cash based economy, but is becoming increasingly cumbersome as digital payments take hold in emerging markets. Its been a great combination. From the CEO down through his executive team, you see a real commitment to this transformation exercise and a real commitment to finding ways to optimize our processes, to get efficiencies, and to fund those investments that will drive topline revenue growth. Finance. The organisation was looking for somebody with a fresh perspective who could challenge the norms, bring people together to show them the value of what were doing and basically create an environment thats a little bit different to your usual corporate set-up. Western Union is a global leader in cross-border, cross-currency money movement and payments. Digital transformation in Western Union must be driven from the top-down. We see ourselves as becoming a FinTech that can move quickly while being sure that our infrastructure and processes allow us to work at scale. Looking ahead, the Sales Cloud will be connected to the Marketing Cloud, which in turn is connected to our Care Cloud, so that whenever something happens across any of those products we are able to react in a way that suits that customer. [9]Western Union recently dipped its toes into blockchain. Data privacy and security practices . He shares his views on digital transformation and economic opportunities for all. In 2016, Western Union completed 268 million consumer-to-consumer transactions and 523 million business payments world-wide, moving more than $150 billion of principal for consumers and businesses. Divestiture Will Support Western Union's Strategic Focus on its Global Cross-Border Payments Platform and Digital Capabilities Customers can send and receive money in a fast, reliable and convenient manner., We are proud to offer the same omnichannel choice in Austria. Western Union has had a compound annual growth rate above 25 percent over the past five years, since the launch of the digital division. The top challenge for businesses with digital transformation goals in 2023 is determining where their companies should direct spending on technologies, according to a BCG X report. By John Manning, International Banker. And, Fellahi points out, When you look at customer acquisition on our digital channel, 80 percent of the customers we acquired in the past 12 months are new to usnot migrated from our traditional customer base., He expects digital money transfer and mobile technology to be the major driver of overall growth in coming years, adding, In the U.S., over 65 percent of WU.com transactions are initiated on a mobile device, and globally it is nearly 60 percent.. What are the biggest lessons you learned? Product Director, United States Money Transfer. Think of Western Union, and its yellow placard advertising an agent location comes to mind. The pandemics economic stressors created a situation where more people suddenly needed to send money to family and friends around the world, many of whom rarely use financial services. Filipino workers abroad), they need to bring physical money somewhere, and most of the fintech companies in remittance space dont have their own channels (they often partner with local kiosks). The company considers local preferences, as well, accepting about 10 payment methods, such as Apple Pay in the U.S. Start Time: 16:30 January 1, 0000 5:32 PM ETThe Western Union Company (NYSE:NYSE:WU)Q3 2022 Earnings Conference CallNovember 01, 2022, 16:30 PM ETCompany ParticipantsDevin McGranahan -. So we established a set of what we call market-shaper practices that we wanted to focus on. In 2011, Western Union opened an office in San Francisco to ramp up its digital operation. Western Union. Revenue from Western Union's digital money transfer services spiked from $600 million in 2019 to over $850 million in 2020. It has become one of the leaders in Extract, Transform, Load (ETL) technology and the majority of the data moving across our ecosystem is now powered by Talend. HELIX, Management The partnership will enable funds to be sent from countries around the world to mobile wallets across Africa through the organization's licensed payment rails. But theyve been hugely supportive and as weve hit milestones, such as moving significant infrastructure completely to the cloud or achieving significant savings with the Marketing Cloud, we have built that business case. We wont bug you too much because thats more work for all of us. Western Union charges high fees since they need to cover rent and labor overhead. First, for continuity of services. These are things like rewards and recognition, top-down innovation, and consequence management. 2021. be to drive digital transformation and . Assignment: Driving Digital Transformation, AIG & Cyber Insurance Learning to Insure a Digital World, The First Transcontinental Telegram was sent to DC 155 Years Ago, Form 10-K for the year ended December 2017, How Blockchain Could Help Emerging Markets Leap Ahead, Beyond the Hype: What Blockchain could mean for Africa, Western Union is Testing Ripple and XRP for Money Transfers, Western Union Brings Money Transfer and Its Tricky Fees to Chat Apps, Emirates NBD, an almost perfect digital transformation, B2B business solutions (cross-border and cross-currency). How do you start there and end up with a fully embedded transformation across a company of 12,000 people? So its a real imperative across the top of the organization. Today, structured and semi-structured data can easily coincide. . Top-down prioritization of digital transformation. UnionDigital Bank is the trusted bridge between innovation and regulation. Big data has helped Western Union merge data across multiple channels for years, for marketing and promotion, customer lifecycle management, compliance and fraud modeling. The Foundation is supported by the Western Union Company, its employees, Agents, and business partners, working to support education and disaster relief efforts as pathways toward a better future. They essentially sponsor a team and loan the resources that are necessary. We know there are certain systems that we cannot just move to the cloud straight away such as the AS400 IBM mainframe, but weve managed to take the ecosystem that surrounds our legacy technology and move it to the cloud and we think we can get everything to the cloud before the end of the year. Commenting on the advantages of development on OutSystems, Tom says, We estimate that were getting new products to market at least twice as fast as competitors, and were probably using a tenth of the resources they are on front-end development. Once a customer notarises their documents, they can be stored in a safe location and distributed across the blockchain network, so any regulatory authority or government can access that information. The second aspect is our agile work, where we spin up teams that have learned and are now experts in using agile methodologies for product launches or IT development. People who knew how a team or a group worked before can come in and see its night-and-day different. That helps us refocus on the particular market-shaper practices that we need to double down on in order to continue improving during our transformation journey. Join us to learn how your organization can become a leader in the Data Economy and the business benefits that result. Others prefer to prepare a transaction online and then go to a retail location to pay cash. As such, when Western Union embarked on its technology transformation, it was keen to recruit personnel who could help achieve its vision. When we started the transformation project, we came at it from the perspective of this being a cultural transformation just as much as a process transformation. This is just one example of how blockchain could be an opportunity for Western Union. Africa, South With the blockchain environment, there may be value in the technology as it becomes more mature and efficient. . ; With the solution, Western Union launched a state-of-the-art digital . January 25, 2019 | Video. (2017) Monitoring Media Pluralism in Europe: Application of the Media Pluralism Monitor 2016 in the European Union, Montenegro and Turkey. Navigate Poland followed later in 2022, while plans are at hand to launch Italy by the end of the year. Union Pacific, the railroad company that transports chemicals, coal, food, minerals and automobiles in and around 23 Western U.S. states, has had two workhorses that toiled tirelessly for the past . When people send money to friends or family across the country or around the world, chances are good that Western Union is involved. While WU is considered a global leader in their space, competitive insights and . The Western Union Foundation is actively supporting NGOs that help refugees and migrants around the globe through education and financial literacy.

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