Key
Takeaways from Ken Research report titled, “Philippines Money Transfer and Bill Payment Market Outlook to 2023”
The improvement in the global economic
conditions has been a major growth driver in the OFW remittances during 2017.
Depreciation of Philippine Peso was also a factor that raised the amount of OFW
remittances
Migration
of labor has been an important mode of movement of Filipinos to other countries
particularly because of scarcity of jobs with inadequate income in the
Philippines and due to the demand, principally in less skilled occupations in
overseas nations. From 2010 to 2016, Saudi Arabia, UAE and Singapore were the foremost
countries for the deployment of newly hired and re-hired land-based OFWs.
Nevertheless, in 2011, there were more OFWs positioned in Singapore than in
Hong Kong and Qatar, rendering Singapore the third most important destination
of OFWs.
International
remittance inflows in Philippines are highly affected by seasonal patterns. For
instance, March is the month for graduation in the Philippines and remittances
have showcased significant incline in this month over the past five year.
Remittances also inclined in the months from May to June as it is the period of
opening of schools. Moreover, transfer of finances from OFWs also exhibited a
hike amidst the holiday season especially in the month of December as they sent
more money back home for Christmas festivities, gifts and other holiday related
expenses.
The
gains that families in the Philippines draw from remittances principally hinge
on where and how they spend the remittances. For instance, Filipino households
which obtained remittances from overseas Filipino workers have spent relatively
less on consumption of goods such as food and more on investment goods such as
housing and education. International remittances have been characteristically
utilized for investments in human capital and physical assets, which majorly
include health and education. Such investments were observed to be directly
responsible for invigorating growth.
In
Philippines, remittance has been dominated by companies such as Western Union,
Bank of Philippines Island, LBC Express, BDO, Metropolitan Bank. On the other
hand, the market is becoming competitive with the introduction of new
technologies. New players and startups are offering different forms of money
transfer services. With the advent of digital currency and blockchain technology,
companies are becoming adaptable for currencies like bitcoin to enable
remittance services.
Analysts
at Ken Research in their latest publication “Philippines
Money Transfer and Bill Payments Market Outlook to 2023 – By Domestic
Remittance Banking and Non Banking (Pawnshops, MTO) Channels, International
Remittance Flow Corridors and Channel; Bill Payment Segment” believe
that promoting latest technologies such as digitization of money transfer, new
transaction platforms and increasing deployment of Filipinos in other countries
will aid the Philippines International Remittance Market.
For more information on the market
research report please refer to the below link:
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