Global Market Research Reports : Ken Research: Qatar Remittance Market

Showing posts with label Qatar Remittance Market. Show all posts

Monday, December 20, 2021

Qatar World Bank International Remittance Report | Weekly Funding Limit Remittance Industry in Qatar | Commission rate Banking Partners Qatar: Ken Research

Why is it important for exchange houses in Qatar to re-assess their current business positioning

Exchange houses in Qatar dominate the international remittance industry by facilitating more than 1 million transactions on a monthly basis. As of June 2021, there were 20 exchange houses operating with a total of 141 branches located in different provinces of Qatar. Al Dar for exchange works, established in 2006, operates highest number of ~21 branches across Doha, Ar Rayyan, Al Khor etc.

Everything was faring well in the industry before the onset of pandemic of COVID-19 and corresponding restrictions on mobility that deeply affected the money exchange industry. During lockdown restrictions, many expat workers, which contribute ~88% of total Qatari population, returned to their home countries and temporary closure of exchange houses made it difficult to remit money back home. While, customers with sound digital know-how were early to comply with e-KYC requirements and transact via online solutions, it was the blue collar workforce which ended up being the victim of digital divide.

Digital is the Future:

While the business activity has attained pre-COVID levels for major exchange houses, a noticeable trend has been double digit to multi-fold Growth in Online Transactions of Remittance via digital solutions offered by exchange houses. Leveraging 99% internet penetration rate in Qatar and high time spent on social media engagement, exchange houses are also envisioning to undertake investments in development of digital solutions and extending partnerships with digital players. For instance – partnership of Ooredoo Money with Al Dar Exchange, partnership of Lulu Money with Mastercard in UAE depict the growing focus of incumbents towards digitalization.

What can exchange houses do to ride the wave of digitalization?

Almost every exchange houses has launched its digital solution (web/mobile application/both), it is now pertinent for the operators to leverage it for smooth customer acquisition, high standards of servicing and connected customer retention. An ideal digital solution focuses on customer satisfaction at each stage and aims to reduce the transaction time by offering a hassle free experience.

The below table summarizes the shift in strategic focus of major exchange houses prior to and post COVID-19 on select parameters:

While, the transformation to digital solutions might put pressure on bottom-line figures in initial years; the improvement in unit-economics, expected life-time value and benefits completely outweigh the costs attached to it. Moreover, to compete with global MTOs (Western Union, Xpress Money, Wise, and Moneygram etc.), regional players (Xare, STC Pay, Denarii) and domestic start-ups (C-Wallet), it is pertinent for incumbents to re-assess their current positioning and retain customers by offering advanced solutions.

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Key Topics Covered in the Report

Overview of International Remittance Industry in Qatar (Statistics on Corridor wise Transaction volume and value)

Industry segmentation (By Type of Transfers, Type of Intermediary Operators, Corridor wise, Type of Source Entities)

Cross Comparison of Major Exchange houses on Operational and Financial Parameters (December 2020, June 2021)

Company Profile of Major Exchange Houses (Overview, Products and Services, USP, Business Strategies, Branch wise Operational Performance, Cumulative Financial Performance, Recent Developments)

Growth Drivers and Challenges to Qatar International Remittance Industry

Industry trends and developments

Rules and Regulations by Government Bodies

Impact of COVID-19 and Future Outlook of Industry

For More Information, refer to below link:-

Qatar Central Bank AML Guidelines | Commission rate Banking Partners Qatar

Singapore International Remittance Market Outlook to 2023 - By Inbound & Outbound Remittance, By Banking and Non-Banking Channel, By Inflow & Outflow Remittance Corridors

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

support@kenresearch.com

+91-9015378249

Thursday, December 9, 2021

International Remittance Industry in Qatar | Market share of Exchange Houses | Qatar Central Bank AML Guidelines | Future Outlook Remittance Qatar: Ken Research

Qatar – 88% of Population are Expatriates

Qatar is home 2.8 Million population with more than 88% of population comprising of expats with India, Nepal, Philippines, Bangladesh, Sri Lanka, Egypt and others being key source countries. In 2019, outward remittances were recorded at 6.5% of total GDP of country with India being the prominent corridor of outward remittance transactions. During the period of 2013-19, there has been a multi-fold growth in expat population of select countries, which have contributed immensely to the growth in international remittances of country.

During 2016-19, the International Remittance Industry in Qatar increased from QAR xx Mn to QAR xx Mn, growing at a CAGR of xx%. During 2019-20, industry size declined by xx% due to pandemic of COVID-19 and return of migrant workers to their home countries.

Given high employment of expat population, it is no doubt that outbound remittance flows contribute >95% to industry with India, Nepal and Philippines being the largest corridors.

Overview of Outbound Remittance Industry

Given the high cost of sending money back home, customers are generally incurring high transaction size to save on transaction fees again. In the past 4 years, industry has also witnessed a decline in average revenue per transaction owing to technological innovations, entry of vertical players and low-cost positioning of few exchange houses.

Correspondent banking networks remain the foremost choice of partnership of local exchange houses while for non-prominent corridors, exchange houses tie up with third party money operators and global MTOs to facilitate transactions. While, direct to account transfers are most commonly used, analysts at Ken Research expect a decline in cash pickup transfers due to focus on digitalized payments of countries across world.

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Competitive Landscape of Industry PLAYERS

The industry is dominated by exchange houses catering to the large chunk of blue collar workforce which are unable to open bank accounts in Qatar. As of June 2021, there were XX exchange houses in Qatar operating via a network of XX branches across Qatar.

It was interesting to note that there were no supernormal benefits of early starters in the industry and firms majorly compete on the basis of exchange rate offered coupled with level of quality services offered (same day credit, cash pickup service etc).

Cross-comparison Among top Exchange HouseS

Being a commodity-type industry with competitive prices being a pre-requisite, firms are generally aiming to drive volume of transactions via branches to adhere to financial and profitability goals of the exchange. It was analyzed that XX monthly outbound transactions would lead to a break-even at a branch level. Further, top 5 players contributed XX% market share to the industry size during June 2021.

The extent of partnerships with correspondent banks and third party money operators including Global MTOs also affect the choice of customer for selection of exchange house. For instance, Al Jazeera Exchange employs staff of IME Nepal within its branch to execute transactions of Nepal Corridor, Sewa Money Transfer (Nepal correspondent) has partnered with Eastern Exchange to facilitate transactions.