Remitly targets bigger share of local remittance market

DIGITAL remittance company Remitly is looking to grow its market share in the Philippines to 40% from the current 16% over the next four years with greater mobile adoption and wider brand awareness, company officials said.

Gene Nigro, vice-president of Remitly’s global business development, said he expects robust growth for the company in the coming years after its recent success.

“The market is going up 8% a year. It’s only a matter of time. And also we only do online, and the online market is growing triple digits. So we hope to have about half of that market in the next four years,” he told reporters on Wednesday after a briefing in Pasig City.

He added, “The key is to continue to innovate and also continuously give customers a very good service because if you’re paying for something, you want good service.”

Britta Gidican, the company’s marketing communications head, said Remitly had been growing “triple digits” for the past three years, convincing them that reaching the target 40% market share “can be a few years away.”

“Our biggest challenge is getting people used to the idea of sending money through an app across the ocean . . . But we’re seeing adoption grow so quickly. We’re seeing more and more people move. Digital is growing a ton,” she said.

Mr. Nigro said he aims for an increase in brand awareness for Remitly to remain competitive in the Philippines, where the business is challenging because of tight competition.

So far this year, Remitly has grown its remittance volume to $6 billion from where it started in 2011. The growth comes from its network in about 47 countries, where the top three markets are India, the Philippines and Mexico, he said.

He said the average remittance amount to the Philippines is $270, which overseas Filipino workers send to the country about 13 times a year.

Ms. Gidican said workers from 15 countries are able to send remittances to the Philippines. These include United States, Canada, Australia, United Kingdom, Italy, Germany, Norway, Sweden, Netherlands, Denmark and Austria. Remitly may tap other countries for expansion, including some in Asia, she said.

Remitly is working with BDO Unibank, Inc., Metropolitan Bank & Trust Co., M Lhuillier and Cebuana Lhuillier, but is still on the lookout for more partners, Mr. Nigro said.

World Bank data show the Philippines had the third-highest amount of remittance inflows in 2017 at $33 billion, after India with $69 billion and China with $64 billion. —