Philippines Remittance Market: Makreo Research Unveils Key Trends and Transformations

The Philippine Remittance Market is a global economic force, ranking 4th with a record-breaking $31.4 billion in 2021, vital for post-pandemic recovery.
By: Makreo Research and Consulting
 
MANILA, Philippines - Nov. 28, 2023 - PRLog -- Philippine Remittance Market Overview
The Philippines boasts the world's fourth-largest remittance market, contributing 9.6% to the GDP in 2020. Factors such as strong oil prices in GCC countries and robust labor markets in the U.S. fueled a 2022 boost, with nearly half of East Asia's remittances finding their way to the Philippines.

OFW Contributions and Global Mobility
From 2018 to 2019, Overseas Filipino Worker (OFW) cash remittances grew by 4%, reaching an unprecedented USD 33.5 billion in 2019. The U.S., Saudi Arabia, Singapore, and Japan were primary contributors. The global Filipino diaspora, numbering 10 million, continues to drive remittance growth.

Outward Remittances and Student Migration
Outward remittances surge due to accessible educational loans, with initiatives like UniFAST driving Filipino students abroad. Canada, Australia, and the U.S. are top destinations, with an estimated 62,000 Filipino students studying abroad in 2022.

Traditional Channels and Unbanked Challenges
Traditional remittance methods dominate in the Philippines, Vietnam, and Indonesia, where a significant unbanked population faces challenges accessing formal financial services. In the Philippines, "cash is king," with OFWs favoring brick-and-mortar remittance locations.

Digitalization Reshaping the Landscape
Digitalization, fueled by fintech and internet advancements, is transforming the remittance industry. While regions with robust infrastructure lead in digital adoption, challenges persist. The digital remittance sector anticipates a 23.8% CAGR by 2025, driven by technological advancements and increased accessibility.

Dynamic Intersection
The intersection of Filipino student migration and the evolving remittance landscape reflects a narrative shaped by traditional practices, socio-economic realities, and the transformative potential of digitalization in finance.

Makreo Research has recently released a study on the Philippines Remittance market titled, "Philippines Remittance Market Size and Forecast (2018–2028) - Share and Growth Analysis By Mode of Transfer (Digital and Traditional), By Type (Inward Remittance, Outward Remittance), By Channel (Banks, Money Transfer Operators)." This comprehensive study delves into the inward and outward flow of the Philippines Money Remittance market, providing a detailed assessment of historical and current market trends.

Research Study:
Philippines Remittance Market Size and Forecast (2018–2028) (https://www.makreo.com/report/philippines-remittance-mark...)

Related Reports:

Global Money Remittance Market Analysis and Forecast (2016-2027) (https://www.makreo.com/report/global-money-remittance-mar...)

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Industry:Banking
Location:Manila - Metro Manila - Philippines
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