Tuesday, August 20, 2019

Development of Fintech Space, Increased Number of Mobile Phone Users & Mobile Internet Subscribers and Unprecedented Development in Digital Transfer Offerings has substantiated the International Remittance Market in Singapore: Ken Research

The report titledSingapore International Remittance Market Outlook to 2023 - By Inbound & Outbound Remittance, By Banking and Non-Banking Channel, By Inflow & Outflow Remittance Corridorsby Ken Research believe international remittance market of Singapore has been growing at a swift rate due to rising migration rate, plethora of services offered by the remittance service providers, digitalization of channels, switching to Fintech & mobile remittance, and increased tie-ups between remittance service providers in the region. The market is further expected to be driven by new remittance service providers registering a CAGR of 3% by total volume of transactions during 2018-2013.


“Rising Fintech usage and plethora of start-ups in this sector, with increasing employment opportunities across the island are further augmenting the growth of Remittance Market of Singapore”

Out of the total population of close to 5.8 million in 2017, more than 2 million people have migrated to Singapore and out of 3.9 million resident population, more than 20%are not natives of Singapore. With a low unemployment rate and plethora of job opportunities, the country has not been overlooked by international labour market. This is evident in the migrant stock data released by UNICEF wherein according to the report, the total population in the age category 25-49 is dominated by foreign-born (males and females). The majority of outward remittance has been to Pakistan, Malaysia, China, Indonesia and India. These are also the countries of origin of majority of migrant stock in Singapore. The growth in the Singapore outbound international remittance market has been trailblazing and is strengthened by developments in technology, relaxation in regulations & licensing processes and with the surfeit of options available to the people for global money transfers. Recent developments in Mobile Wallets and Mobile applications of banks and MTOs and the increased use of such technology has made sending and receiving money globally fast and secure. Major Banks such as DBS, OCBC Bank and others have made significant strides in order to provide such services to their vast base of customers. Such developments have been made by keeping in mind the positive trend in possession of smart phones and mobile internet subscribers. The Smartphone industry in Singapore, in terms of possession, has increased on an average annual growth rate of approximately 13%, with more than 70% of the households in Singapore possessing a smart-phone. Moreover, the number of Mobile internet subscribers has also seen a positive trend in the last six years, though not too drastic. There has been an average annual growth of approximately ~%, with the maximum growth being in the year 2016, approximately ~%. The number of subscribers has increased, with the most recent growth rate for the year being ~%. This positive trend in mobile internet subscribers and the possession of smart-phone in Singapore has been perfectly taken in consideration by the banks and MTOs and hence, rolled out some significant developments in this sector.

This trend of increased digitalization and Fintech has increased the number of players in this sector. InstaReM leads the way. Other startups that have started their operations in Singapore are world renowned Fintech companies like WorldRemit, TransferWise, FlexM, Fastacash, Toast, Rebit.ph, Azimo, and others. New high-tech players offering lower fees and virtually instant mobile transactions are shaping up to be one of the most disruptive forces in the financial industry. Singapore is capitalizing heavily on this trend buoyed by its large migrant workforce and a sizeable contingent of Singaporeans working overseas.

Key Segments Covered in Singapore International Remittance Market

By International Inbound Remittance Flow
On the Basis of Channels (On the Basis of Volume of Transactions)
Banking channels
Non-Banking channels

By International Outbound Remittance Flow Corridor
On the Basis of Channels (On the Basis of Volume of Transactions)
Banking channels
Non-Banking channels

By Flow Corridors (On the Basis of Volume of Transactions)
China
Malaysia
India
Pakistan
Indonesia
Other corridors like Bangladesh, Thailand, Philippines etc.

Key Target Audience
Banks
Money Transfer Operators
M-Wallet Companies
Hawalas
Convenience and Retail Stores
Supermarket Chains
Bills and Payments Companies
Investors & Venture Capital Firms
Government Bodies

Time Period Captured in the Report:
2013-2018 – Historical Period
2019-2023 – Future Forecast

Companies Covered: DBS Bank, OCBC Bank, United Overseas Bank, Bank of China, Standard Chartered Bank, Western Union, MoneyGram, InstaReM, TransferWise, WorldRemit, Singtel Dash, FlexM,  and GrabPay.

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For more information on the research report, refer to below link:

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