Philippines Remittance Market
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Philippines Remittance Market
WHAT HAVE BEEN THE MAJOR TRENDS AND CHALLENGES IN PHILIPPINES REMITTANCE AND BILL PAYMNETS MARKET ?
1 . 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 .
2 . 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 .
3 . 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 .
4 . The government of Philippines has taken concrete steps to bolster infrastructural development in the country .
5 . 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 .
6 . 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 .
7 . 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 .
8 . 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 .
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