The Western Union Company (NYSE:WU) today announced an agreement to offer international money-transfer services at Sberbank branches across Russia.
Sberbank, the oldest and biggest bank in Russia, Central and Eastern Europe, is expected to become the largest Western Union partner bank in the region. According to the agreement, Western Union® services initially will be available at more than 8,000 Sberbank branches in 2011.
The two companies plan to expand the network further when Western Union international money transfers become available for consumers at all Sberbank branches that are integrated into the bank's BLITZ money-transfer system (more than 9,000 locations in 2,800 cities and residential areas across Russia).
"This signing represents our continued commitment to our consumers and their financial needs," said Western Union President and CEO Hikmet Ersek. "We are expanding Western Union's footprint across Russia and offering consumers access to more Western Union locations so they can conveniently make use of our products and services where they need them."
"Cooperation with such a large player in the market of international money transfers as Western Union enables us to offer our clients new services and expand our activities in the field of international money transfers. We are confident that this agreement will be beneficial for both parties," said Alexander Torbakhov, Deputy Board Chairman of Sberbank of Russia.
It is expected that the first year of the partnership will be focused on the consumer-to-consumer Western Union money-transfer service at Sberbank branches. Afterward, the two companies would consider launching account-based money transfer; that is, enabling the bank's clients to transfer money directly from their bank accounts online to any of the 386,000 Western Union Agent locations in 200 countries and territories around the world.