A financial capitalist firm, People’s Group Dubai, looking for financing a micro-remittance-cum-foreign exchange operation in Hong Kong. Mr. Rao approached the institute who already had various year tenure in the banking sector. Many of the touristsin China visited Hong Kong for their tourism in recent years, which ensured him that the demand for currency exchange would continue to grow. He additionally contended that the increasing remittance of domestic work to their home countries would also generate continuous demand for remittance services. He showed his confidence about the market by mentioning that even if he starts his office with only a couple of employees and one manager in any busy location of Hong Kong, he would embrace the growth within no time in this market.
Although, it would require some financing for fixed assets and working capital to start operations in further locations. A key enabler for the proposed venture was the telecommunication network of Western Union, which had become a trustworthy provider of remittance services and had expanded in various regions across the world. Mr. Rao decided to utilize the state of the art technology and IT expertise of People’s Group based in Bangalore, India. People’s Group Dubai appreciated entrepreneurial thoughts if it yields the desired results and ensures a significant rate of return on investment (ROI). In the presence of intense competition, and internet players of micro-remittance service provider, the adequacy of technology support from India was in a question mark that whether it would expedite the success and result in desired ROI in the short and longer term. People’s Group senior executives discussed the sustainability of Rao’s proposed strategy.
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