Market Research Report Money Transfer Agencies Philippines,Remittance Flo

14 Philippines Remittance Market HOW THE COMPETITION IS PREVAILING IN PHILIPPINES DOMESTIC REMITTANCE MARKET HOW THE COMPETITION IS PREVAILING IN PHILIPPINES INTERNATIONAL REMITTANCE MARKET 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. In addition to the prevalence of informal remittance modes in the Philippines, a gamut of formal payment methods are also common. Pawnshops have been an important part of Philippines’ financial sector, surpassing banks in terms of physical reach. There were a total of ~ pawnshops in the Philippines in 2016, of which approximately ~ were entirely in the pawning business, while the remaining had other revenue generating operations, chiefly remittance services. Comparing to other financial institutions, pawnshops outnumbered savings and loans associations, universal and commercial banks, and rural banks. Palawan Pawnshop, Cebuana Lhuillier and M Lhuillier are three of the largest pawnshop businesses in the Philippines, offering a variety of money transfer services. The continued expansion of remittances in the past several years has been impelled by the sustained innovation on the part of banks, money transfer companies and other financial institutions which provide remittance services to overseas Filipino workers. Majority of the money remittances received by Filipino households are routed through commercial banks. 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 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. Table: Market Share of Major Players in the Domestic Remittance Market in % Companies Market Share (%) Palawan pawnshop LBC Express Cebuana Lhuillier Western Union M Lhuillier Pinoy Express iRemit Banks ~ ~ ~ ~ ~ ~ ~ ~ Table: Market Share of Major Players in the International Remittance Market in % Companies Market Share (%) Banco de Oro The Bank of Philippine Islands Philippine National Bank Metropolitan Bank Wells Fargo Western Union iRemit MoneyGram Xoom LBC Express ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ © Licensed product of Ken Research; should not be copied

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