Market Research Report Overseas Filipino Remittance Philippines,Money Rem | Page 13

June 2017
Philippines Remittance Market Outlook to 2021
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
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