Easier means of global money transfers sought

FILIPINOS today are now looking for easier ways to conduct remittance transactions, given the country’s thrust toward digitization and with the pandemic still looming over the business environment.

According to new research from Western Union, tech-savvy Filipinos seek choice above all for their future international money transfer needs.

“Exclusive insights show that while 44 percent of consumers currently prefer to receive money transfers through digital platforms, almost 70 percent want to be able to choose how they collect their funds in the future,” the research said.

“As consumers look to the future, the principle of choice in how to transfer money internationally is most appealing,” said Jean Claude Farah, Western Union Middle East and Asia-Pacific president. “This resonates with what we see among our customer base, as they actively seek services that are convenient, fast and reliable, and are based on what they need.”

He also added that the study amplifies the need for larger ecosystems, where retail and digital platforms grow and evolve symbiotically.

“At Western Union, one of the key focuses is to accelerate growth in the Philippines and build on our core capabilities so that we can help grow, strengthen and evolve a financial ecosystem that surrounds our customers. Through this approach, we believe that we can harness the power of both the physical and digital touch points to serve all our customers’ needs,” Farrah added.

This comes as World Bank data shows that the Philippines inbound (receiver) market for remittances in the world, bringing in $37 billion in 2021.

The government and the Bangko Sentral ng Pilipinas have made significant strides in driving digital transformation and encouraging inclusion by creating and committing to a clear financial inclusion strategy. However, Western Union said there is still so much to do.

“Trust ranks highly as a top barrier for using digital money transfer services among senders (31 percent) and receivers (23 percent). Thirtyseven percent of receivers prefer faceto-face interaction, while senders say process or customer experience prevents them from doing so (15 percent),” the report read.

“However, approximately 30 percent of senders and 14 percent of receivers do not transfer money online for reasons such as lack of connectivity, limited knowledge of digital services, no online banking history or because they are generally unbanked.”