Philippines International Remittance Driven by Consistent Growth in Overseas Filipino Workers and Rising Penetration of Banks and Mobile Money: Ken Research

“The improvement in the global economic conditions has been a major growth driver in the OFW remittances during 2018. Depreciation of Philippine Peso was also a factor that raised the amount of OFW remittances.”

Analysts at Ken Research in their the latest publication Philippines Remittance and Payments Market Outlook to 2024 – Growth Backed by Sustained Internal Migration, Rise in Overseas Filipino Workers and Surge in BPO Sector believe that promoting the 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.

Growing Internal and External Migration: Migration of labor has been an important mode of movement of Filipinos to other countries particularly because of the scarcity of jobs with inadequate income in the Philippines and due to the demand, principally in less skilled occupations in overseas nations. The majority of the OFWs primarily originate from the Cavite, Laguna, Batangas, Rizal and Quezon (CALABARZON) region (approximately 17%), and the peripheral regions of Central Luzon (approximately 15%) and Metro Manila (approximately 14%). The regions accounting for the least number of OFWs include Caraga, MIMAROPA (Mindoro Oriental and Occidental, Masbate, Romblon and Palawan) and the Cordillera Administrative Region.

Seasonal Variations in Philippines Remittance: International remittance inflows in the 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 years. 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 the 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.

Competition Forces in the Philippines Remittance Market: In the Philippines, international remittance has been dominated by Banks and MTOs such as Banco De Oro, Bank of Philippines Island, Metropolitan Bank, Western Union, MoneyGram, and others. 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.

Growth of Pawnshops: The broader reach of pawnshops has been fundamentally attributed to the ease of establishment. In contrast to a bank, a pawnshop requires a lesser amount of space, fewer staff, and requires much less capital, where it is mandatory for each pawnshop branch to have a capital of just PHP 100,000, as stated by BSP. Out of the 16,723 pawnshops in 2016, around 7,400 also provided some auxiliary services such as remittances facilitation, money changing, and bills payment facilitation. By the end of the first quarter of 2018, the number of pawnshops in The Philippines increased to 16,582.

Key Segments Covered:-

Domestic Remittance

By Remittance Channels

Banks

Non Banks

By Types of Services

Branch Pick-Up

Online

Door to Door

Prepaid Cards

Direct Credit to Bank Account

By Major Flow Corridors

Bill Payment Market

By Channel of Payment

Banks

Non Banks

By Type of Payments

Water

Electricity and Fuel Bills

Insurance Premium

Communication

Education

By Mode of Payment

Offline

Online

Method of Payment

Convenience Stores

Online/Mobile Payments

Biller’s Business Offices

Remittance Companies

Banks and Others Offline

International Remittance Market

By Major Flow Corridors

US

UAE

KSA

UK

By Remittance Channels

Banks

Non Banks

By Payout Mode

Cash

Non-Cash/Electronic Transfer

Door to Door Delivery Method of Payment

Key Target Audience:-

Money Transfer Operators

Banks

Pawnshops

Bill Payment Companies

M-Wallets

Mobile Money Companies

Central Bank

Investors and PE Firms

Convenience Stores

Time Period Captured in the Report:-

Historical Period – 2013-2018

Forecast Period – 2019-2024

Companies Covered:-

International Remittance Companies:

Banco de Oro

The Bank of Philippine Islands

Metropolitan Bank

Cebuana Lhuillier

M Lhuillier

Palawan Pawnshop

Western Union

LBC

iRemit

Wells Fargo

Xoom

Domestic Remittance Companies:

Palawan Pawnshop

Cebuana Lhuillier

Smart Padala

M Lhuillier

LBC Express

BDO

BPI

Western Union

Keywords:-

Philippines Bill Payment Market

Philippines Remittance Industry

Philippines Remittance Market

Transportation Bill Market Philippines

Insurance Premium Bill Payment Market Philippines

Mobile Phone Payment Market Philippines

Convenience Stores Bill Payment Philippines

NCR Domestic Remittance Philippines

Manila Domestic Remittance Market

Pawnshop Remittance Philippines

LBC Express Philippines Remittance

Western Union Philippines Remittance

Smart Padala Philippines Revenue

Pinoy Express Philippines

Cebuana Lhuillier Philippines

Banco De Oro Philippines

Complete Report is Available Here:-

Philippines Remittance and Payments Market Outlook

Related Reports by Ken Research:-

Europe International Remittance Market Outlook to 2023 – By Inbound & Outbound Remittance, By Channels (Banks, MTOs, M-wallets, and Others), By Inflow & Outflow Remittance Corridors, By Point of Contact (Branch Pick-up, Mobile Payment & Online Transactions, Prepaid Cards)

South Africa Domestic and International Remittance Market Outlook to 2023 – By Channels Used (Banking Channels, Retailers, ADLAs & MTOs and Others), Remittance Corridors (Inbound-Outbound and Rural-Urban)

UAE Remittance and Bill Payments Market Outlook to 2021 – Rising Expatriate Population, Growing Business Activities and Increasing Demand for Utilities to Foster Growth

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

Sales@kenresearch.com

+91-9015378249

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