Philippines has been one of the fastest growing economies in the ASEAN regions during the past five years. With an improvement in economy which has been facilitated by an increase in trade, the country plans to achieve more than 6% GDP growth rate in the coming years.
The market for domestic money transfers in the Philippines has been exceedingly dynamic and has matured since the last five years. Filipinos have a gamut of alternatives available in terms of the presence of numerous formal payments service providers (PSP) in a market with high competition. The market has also been flooded with informal means of making payments which include friends, family and vehicle drivers. Overseas Filipino Remittance Philippines, Bitcoin Wallet Remittance Philippines
Remittance Flow Philippines, Migration in Philippines, Money Transfer Agencies Philippines, Online bill payment services in the Philippines, The total market for domestic remittances was valued at USD million in 2016 and witnessed expansion from USD ~ in the year 2011.
Remittances sent by cross border migrant workers are a traditional means of financial support to family members back home.
The Philippines has been the nation of source of one of the biggest Asian migrant Diasporas, with its economy greatly reliant on billion-dollar remittances from Filipinos residing and working in around 239 countries and territories. The Philippines was the third largest remittance market in 2016, with India and China being the top two. Personal remittances from OFWs accounted for ~% of the country’s GDP in 2016.
The largest portion of remittances came from land-based workers, who remitted USD ~ million in 2016. On the other hand, remittances from sea-based workers in the same year amounted to USD ~ million.
What Have Been The Major Trends And Challenges In Philippines Remittance And Bill Paymnets Market
- The reach of the financial system in the Philippines has been a direct measure of the distribution of financial institutions in the country. Banks were noticed as the primary players in financial services with banking entities directly responsible for approximately 80% of the total resources of the financial system. Bank branches and ATMs have functioned as the fundamental distribution channels of financial services. The Philippines has been regarded as a thought leader of financial inclusion in the light of its early initiatives and gains in microfinance and mobile banking services.
- A pawn shop has been categorized as a business which provides services of money lending with collection of certain collateral property. Pawnshops in the Philippines have been a major source of money transferring since the past decade. The lower income class of the Filipino society has been significantly served by the pawnshops for their remittance requirements since this cluster constituted the unbanked members of the population.
- The Business Process Outsourcing industry has been an important component of Philippines’ economic growth. The Information Technology and Business Process Management industry has grown to be the second largest source of dollar income for the Philippine economy. During 2016, the industry generated
- ~ million direct jobs and USD ~ billion in revenues. The revenues grew by ~% from ~ million in 2014 and are expected to overtake the overseas Filipino Worker Remittances by 2017.
- The government of Philippines has taken concrete steps to bolster infrastructural development in the country.
- Remittances to developing countries are experiencing a declining trend from the last two years.
- However, Philippines stood as one among those countries that defied the declining trend and continued to show a decent growth rate. Remittances to the East Asia and Pacific region declined an estimated ~% to USD ~ billion in 2016 amid low oil prices and weak economic growth in the Gulf Cooperation Council (GCC) countries and the Russian Federation.
- International remittances showcased strong seasonal patterns, with month on month increases particularly huge in the months of March and December. March is the month for graduation in the Philippines and remittances have showcased significant incline in this month over the past five years.
- Major digital trends that are expected to revolutionize the mobile financial services in the country are virtual currencies, wearable technologies and biometrics. The bitcoin is expected to have a large impact on the global remittance market, particularly in developing countries such as the Philippines where remittances help support families and communities.
- 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.
Topics Covered in the Report
- Overseas Filipino Remittance Philippines,
- Bitcoin Wallet Remittance Philippines
- Remittance Flow Philippines,
- Migration in Philippines,
- Money Transfer Agencies Philippines,
- Online bill payment services in the Philippines,
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Ankur Gupta, Head Marketing & Communications