Philippines Domestic and International Money Transfer Industry Outlook to 2021–Ken Research

Ken Research latest Report on “Philippines Domestic and International Money Transfer Industry Outlook to 2021 – Growing Number of Overseas Filipino Workers and Technological Advancements to Aid Market Growth” provides a comprehensive analysis of remittance and bill payments market in Philippines. The report covers market size, segmentation on the basis of remittance corridor, mode of remittance, major occupation group and distribution of OFWs by cash remittance sent for international remittance market. For domestic remittance market it covers market size, segmentation on the basis of remittance channel, type of services and major flow corridors. It also includes the bill payments market in the country covering the market size and segmentation by type of bills. The report also covers government regulations in the market, competitive landscape and company profiles for major players in the remittance and bill payments market. The report provides detailed overview on future outlook & projections with analyst recommendations for the industry.

The report facilitate the readers with the identification and in-depth analysis of the existing and future trends, issues and challenges prevalent in the industry and anticipated growth in the future depending upon changing industry dynamics in coming years. The report is useful for industry consultants, remittance service providers (MTOs), banks, local agents and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Industry Overview

Philippines remittance market is led by the international remittances and domestic remittances which are represented by the OFW remittance inflow, the domestic remittances. During 2011-2016, the international and domestic remittance markets have showcased a remarkable growth at a CAGR of ~%. Market growth can be attributed to factors like increasing number of OFWs, growing infrastructure and developmental activities, rising business sectors and increasing job opportunities within the country, surging BPO sector and other related factors. Similarly, there had been a tremendous growth in the Philippines bill payments market displaying a CAGR of ~% during 2011-2016. The amplification exhibited by the market should be owed to rising utility bills due to the rising consumption of energy, water, mobile phones, internet facilities and other utilities.

Market Segmentation

International Remittance Market

The US accounted for ~% of the total remittances sent to the Philippines in 2016. From USD ~ million in 2011, remittances sent by Filipinos in the US have grown at a CAGR of ~%. With a percentage contribution of ~% in 2016, Saudi Arabia was ranked as the second largest remittance source for Philippines. Remittance from Saudi Arabia registered a total value of USD ~ million in 2011 and expanded to USD ~ million in 2016. USA and Saudi Arabia were followed by UAE, UK, Japan, Hong Kong and others.

On the basis of occupation the highest average remittance transaction per OFW was observed from the government officials followed by professionals and other workers during 2015.

The average remittance transaction per OFW has been observed to be the highest through banks followed by agencies, door to door services and others during 2015.

Domestic Remittance and Bill Payments Market

The non-bank channel, comprising of money transfer companies and pawnshops operating in the Philippines have dominated the market accounting for a share of ~% of the total number of domestic money remittance transactions in 2016. Banks held a meager share of ~% in the overall market.

Branch pick up service held the highest share in the market in terms of number of transactions during 2016 holding a share of ~%, followed by door to door, prepaid cards, online and direct credit to account services.

Utilities comprised of the major share in the total number of bill payments in the Philippines in 2016. Bills paid for electricity services contributed around ~%, the highest, to the total payments of utilities, followed by transactions for water and gas bills, mobile and internet bills.

Future Potential

The Philippines remittance and bill payments market has witnessed a considerable growth in past five years and the market is anticipated to grow at a CAGR of ~% during the forecast period, 2017-2021. A noticeable amount of FDI inflows was invested in BPO, electronics and energy sector. With the continual growth in FDI flows in the BPO sector, there are expected to be more employment opportunities leading to large scale migrations to urban cities. The continued zeal of domestic Filipinos to send money to their families will provide a major thrust to the domestic remittance market. Rapid growth in the introduction and use mobile technologies in the country for money transfer and bill payments are also a factor that depicts the growth of domestic remittance and bill payments market of the Philippines. International remittance market in the Philippines will continue to be driven by the increasing deployment of Filipinos in other countries. Unskilled workers and laborers will uphold their status as the largest deployed fraction of overseas workers and will continue to account for the largest share of aggregate remittances.

Competitive Landscape

The domestic remittance space in Philippines has largely been a cash-to-cash market, with the money flowing from several informal modes of payment such as friends, family, drivers and others. As majority of the population in the Philippines has continued to remain un-banked, coupled with the fact that cash-to-cash mode of payment is not fitting to banks' transaction services, regulatory and compliance structure, a large portion of the country’s inhabitants continue to resort to exchange of hard cash. These formal payment channels, which include banks, money transfer companies and pawnshops, serve a significant proportion of the Philippine population. Major Players in the market include Palawan Pawnshop, Cebuana Lhuillier, LBC Express, Western Union, M Lhuillier and others.

In 2016, banks absorbed ~% of the total remittances, indicating Filipinos’ mounting faith on this channel instead of sending money back home by means of friends or relatives. Remittances transferred through banks such as Banco De Oro, The Bank of the Philippine Islands, Philippine National Bank, Metro Bank have showcased an inclining participation over the last five years. On the other hand, money transfer companies such as I-Remit, LBC Express, Western Union, Xoom and MoneyGram were also important remittance channels for OFWs in the Philippines, recording a contribution of ~% to the total international remittance transaction volume in 2016.

Key Topics Covered in the Report:

Overview of Philippines Domestic Remittance Market
Philippines Domestic Remittance Market Size
Philippines Domestic Remittance Market Segmentation
Growth Drivers of Philippines Domestic Remittance Market
Competitive Landscape of Major Players in Philippines Domestic and International Remittance Market
Philippines Bill Payments Market Size
Philippines Bill Payments Market Segmentation
Rising Penetration of Mobile Money Transfers
Philippines Domestic Remittance and Bill Payments Market Future Outlook
Philippines International Remittance Market Overview
Philippines International Remittance Market Size
Philippines International Remittance Market Segmentation
Trends in Philippines International Remittance Market
Philippines International Remittance Market Future Outlook
Macroeconomic Factors affecting Philippines Remittance and Bill Payments Market

To know more about the publication, click on the link below

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/philippines-money-transfer-remittance-market-report/121464-93.html

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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

The report titled "Philippines Domestic and International Money Transfer Industry Outlook to 2021 - Growing Number of Overseas Filipino Workers and Technological Advancements to Aid Market Growth"

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

This release was published on openPR.