Growing Economy, Increased Internal Migration Coupled with Surge in Bill Payment Expenditure to foster Growth in the Market: Ken Research.
·The IT and Business Process Outsourcing industry has grown to be the second largest source of dollar income for the Philippine economy creating significant number of job opportunities every year.
· Philippines are witnessing robust growth in the tech industry as the number of remittance payment platforms for the unbanked proliferates.
· Increased competition of seafarers particularly from East Asia and Eastern Europe are expected to reduce the rate of remittances from sea-based OFWs.
· Increasing consumption of electricity, water, mobile phones and others are expected to stimulate growth in the bill payments market.
New Delhi, June 29, 2017: The ever-growing remittance market of Philippines is anticipated to escalate further in the coming years. Owing to the rising number of OFWs in the country, the remittance inflow to the country is expected to grow manifold in the coming years. The unaccounted remittances to an extent are expected to be properly channeled and are expected to raise the transaction volume in the coming years. Moreover, the average amount remitted to Philippines per person is expected to increase as the Filipinos are gradually getting enrolled into jobs that require professional skills and qualifications owing to their year on year improving educational qualifications and such jobs are paid better. Increased earnings of OFWs would raise the amount of remittance. This trend is anticipated to intensify competition in the international remittance market. Banks will continue to be the favored platform for sending remittances for overseas Filipino workers, contributing the major share in the total inflows of remittance in the coming years. Initiatives taken by several banks in the Philippines, to expand their networks and partnerships in other countries will be conducive for the growth of the bank channel of overseas remittances. Moreover the market is also expected to be augmented through international corporate trade remittances.
Continued growth in internal migration is expected to sustain the growth of money transfers taking place in the Philippines. The Philippines has outshined India in terms of voice-based outsourced projects and has become the worldwide leader in the call center industry. The bill payments market is expected to grow at a double digit CAGR during the forecast period 2017-2021. The major factors that are expected to augment the bill payment factor are the mobile phone and internet penetration in the country.
Ken Research in its latest study, Philippines Domestic and International Money Transfer Industry Outlook to 2021, analyzed that the companies can encourage their customers to use digital modes of transfers to reduce the float time. The MTOs, banks and other players can focus on mobile transfers to withstand the competition in the market. Moreover, new and existing pawnshops can align themselves with established remittance service providers in order to grow their business, in addition to spreading out their business to a more urbanized setting.
The Philippines online remittance market is estimated to register robust CAGR during 2017-2021.
The report provides information on the remittance channel, mode of transfer, type of service, remittance corridor and type of bills dominating the market in terms of transaction volume. It also covers the major players in the market such as Palawan Pawnshop, Cebuana Lhuilier, LBC Express, Western Union, M Lhuilier, Banco De Oro, The Bank of the Philippine Islands, Philippine National Bank, Metro Bank and others.
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Corporate Comm India(CCI Newswire)
