MoneyGram's Fintech Transformation: An Apple Vet's New Tricks
MoneyGram, the legacy money transfer company, is undergoing a significant transformation to compete in the rapidly evolving fintech landscape. Under the leadership of new CEO Anthony Soohoo, the company is embracing digital solutions and innovating with stablecoins to stay relevant. Soohoo, a former Apple executive, aims to modernize MoneyGram and challenge competitors like Western Union, Wise, and PayPal.
MoneyGram's History and Challenges
Founded in 1940 as Travelers Express, specializing in money orders, and later acquired by Greyhound, MoneyGram faced challenges as digital payment solutions like Venmo and blockchain gained popularity. The company struggled with debt, and its share price dwindled. In 2023, private equity firm Madison Dearborn Partners acquired MoneyGram, appointing Anthony Soohoo as CEO to revitalize the business.
Digital Transformation and Stablecoin Integration
Since taking the helm, Soohoo has prioritized MoneyGram's digital transition. He revealed that digital transactions have risen from 20% of total transactions in 2019 to 70% currently. A key initiative is the integration of a stablecoin tool into the MoneyGram app, which was recently launched in Colombia. Soohoo believes Colombia's large remittance economy and MoneyGram's extensive retail presence (over 6,000 locations) make it an ideal test market.
Soohoo's Three-Part Strategy for Revitalization
Soohoo outlined a three-part strategy to retool MoneyGram. First, he is transforming the organizational culture by building new teams and hiring experienced leaders. This includes appointing Luke Tuttle, formerly a VP at Klarna, as MoneyGram’s Chief Technology Officer.
The second challenge, according to Soohoo, relates to product building, where he leverages lessons from his time at Apple. Drawing from Steve Jobs' emphasis on customer experience, he focuses on understanding user needs and differentiating MoneyGram through unique product offerings.
Finally, Soohoo is focused on fostering a culture of growth, emphasizing patience and continuous improvement. He highlights communication as essential for cultivating a growth mindset and driving product excellence, viewing clear communication as his "executive superpower."
MoneyGram's Future and Brand Perception
Despite the company's name sounding outdated, Soohoo believes the "gram" in MoneyGram is advantageous, associating it with sending love and community, similar to Instagram. While the future remains uncertain, MoneyGram's efforts under Soohoo suggest a renewed determination to compete in the dynamic fintech sector.
Jeff John Roberts
X: @jeffjohnroberts
Email: jeff.roberts@fortune.com
