Market Research Report Money Transfer Agencies Philippines,Remittance Flo | Page 12

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Philippines Remittance Market
WHICH CHANNEL DOMINATES THE
DOMESTIC REMITTANCE MARKET?
The non-bank channel, comprising of money transfer
companies and pawnshops operating in the Philippines,
accounted for the major share in domestic remittance
market in 2016, in terms of number of transactions with
a share of ~%. Banks hold a meager share of ~% in
the market. Lack of banking offices in several regions
in Philippines has led to the emergence and growth of
several other financial service providers (FSPs) such as
pawnshops, money changers (MCs), money transfer
companies, remittance agents (RAs) and FX dealers.
These entities have greatly helped to increase the access
to financial services in un-served and underserved
regions in the Philippines. 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. Majority of the banks in the country
are concentrated in NCR, CALABARZON and Central
Luzon, leaving regions such as ARMM, Eastern Visayas,
Caraga and SOCCSKSARGEN with a substantially low
prevalence of banks.
Table: Philippines Domestic Remittance Market
Segmentation by Remittance Channel on the Basis of
Number of Transactions in Percentage (%), 2016
Segments Percentage (%)
Non-Bank
Bank ~
~
WHICH ARE THE MAJOR FLOW CORRIDORS
IN PHILIPPINES INTERNATIONAL REMITTANCE
MARKET?
Philippines ranked as the third largest recipient of
remittances worldwide in 2016 after India and China,
followed by France, Germany, Bangladesh, Belgium,
Spain, and Nigeria. The Philippines received remittances
from all over the globe. However, a momentous
proportion of remittances were received from the US,
followed by Saudi Arabia and UAE. Even though the
US has not been amongst the leading destinations for
Filipinos, it has continued to dominate the remittance
inflows in the Philippines over the past five years.
Filipinos have been recorded as the second largest
immigrant group in the US, with the category being led
by Mexican immigrants. Saudi Arabia was observed as
the biggest employer of Overseas Filipino Workers. The
country has the largest Filipino population in the Middle
East. Filipinos account for the fourth largest group
of expatriates in Saudi Arabia. Filipinos in the UAE
mostly constituted migrant Overseas Filipino Workers
working in the marketing, construction, energy, retail,
architecture, information technology, cargo shipping,
medical, tourism, design engineering, real estate and
telecommunications domains or employed as domestic
helpers.
Table: Philippines International Remittance Market
Segmentation by Major Flow Corridors on the Basis of
Transaction Volume in Percentage (%), 2016
Countries Percentage (%)
US
Saudi Arabia
UAE
UK
Others ~
~
~
~
~
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