Western Union Embraces AI for Transition to a New Operating Model
Western Union Partners with HCLTech to Enhance AI Capabilities
Western Union has recently formed a strategic partnership with HCLTech, an Indian multinational IT services company, to leverage artificial intelligence. This collaboration aims to transition Western Union to a modern “platform operating model” that will improve its operational efficiency and customer service.
Goals of the Partnership
The partnership between Western Union and HCLTech primarily focuses on the following goals:
Integrating AI Solutions: Western Union will utilize HCLTech’s advanced digital, cloud, and artificial intelligence solutions to enhance their platform capabilities. This integration aims to deliver innovative and seamless experiences for customers.
- Data-Driven Decision Making: With HCLTech’s support, Western Union intends to make informed decisions based on data. This will include transforming their infrastructure across the enterprise to increase resilience and efficiency.
Establishing a Technology Center
Further enhancing their technological capabilities, Western Union announced plans to open an "advanced technology center" in Hyderabad, India. This center is expected to play a crucial role in supporting the company’s digital transformation initiatives.
Leadership Insights
According to Devin McGranahan, the President and CEO of Western Union, this collaboration is critical for fulfilling their mission of providing accessible financial services globally. He emphasized that HCLTech’s expertise will be instrumental in achieving this objective.
From HCLTech’s side, C Vijayakumar, the Managing Director and CEO, remarked that this partnership highlights their commitment to empowering FinTech companies through digital engineering transformation.
Recent Performance and New Services
In March, Western Union reported that its media network business significantly contributed to its financial performance. Specifically, this new endeavor resulted in a 56% revenue growth for their Consumer Services unit in the fourth quarter. The media network, launched in November, allows businesses to advertise their offerings to Western Union customers, reaching a global audience and connecting with potential clients in a buying mindset.
Challenges in AI Adoption
While the partnership demonstrates a commitment to embracing AI, many companies are finding it challenging to adopt generative AI on a larger scale. A report by PYMNTS highlighted that 91% of organizations using generative AI for important tasks express concerns about how it impacts sensitive company data.
Concerns over Governance: Many businesses feel uncertain about the safety and governance standards related to generative AI. This has led to a cautious approach when incorporating AI into various operational aspects, including procurement and fraud detection.
- Need for a Comprehensive Framework: Experts suggest that generative AI’s capabilities, such as generating insights and automating processes, require a complete governance framework that surpasses traditional models. This need for a holistic approach highlights the complexities associated with integrating AI into business functions effectively.
Conclusion
Western Union’s collaboration with HCLTech marks a significant move towards harnessing the potential of artificial intelligence in enhancing financial services. By establishing a technology center and seeking to improve operational models, the partnership aims to create a more agile and data-driven organization. As companies navigate the landscape of AI adoption, addressing governance and safety concerns will be crucial for successful implementation.
