Philippines Remittance Market Outlook

June 2017 Philippines Remittance Market Outlook to 2021
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TABLE OF CONTENTS
1. Executive Summary
Macro Environment in Contact with Remittance Industry Performance
Domestic Remittance Market
Domestic Bill Payment Market
International Remittance Market
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling
Approach – Market Sizing
Variables (Dependent and Independent)
Final Conclusion
3. Philippines Domestic Money Transfer Market
3.1. Philippines Domestic Remittance and Bill Payment Introduction
Overview
Remote Money Transfers and Bill Payments
Players in the Domestic Remittance Market
Role of Payment Service Providers
3.2. Philippines Domestic Remittance Market Size, 2011-2016
3.3. Philippines Domestic Remittance Market Segmentation, 2016
3.3.1. By Major Remittance Channels: Bank vs. Non-Bank, 2016
3.3.2. By Types of Services (Door to Door, Online, Branch Pick-Up, Prepaid Cards
and Direct Credit to Bank Account), 2012-2016
3.3.3. By Major Flow Corridors, 2016
Migration to Manila
Major Reasons for Migration
Remittance Recipient Regions
3.4. Growth Drivers of Philippines Domestic Remittance Market
Decline in Unbanked Municipalities
Decline In the Number of Pawnshops, 2011-2016
Surge in BPO Employees in the Philippines, 2011-2016
Infrastructural Development
Higher Remittance During Festival Months
Robust Growth in the Tech Industry
3.5. Competitive Landscape of Major Players in Philippines Domestic Remittance
Market
3.5.1. Market Share of Major Players in Philippines Domestic Remittance Market,
2016

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3.5.2. Strengths and Weaknesses of Major Non-Bank Domestic Remittance Players
3.5.3. Service Positioning, Strategy and Key Performance Indicators
3.5.3.1. Palawan Pawnshop
3.5.3.2. Cebuana Lhuillier
3.5.3.3. LBC Express
3.5.3.4. Western Union
3.5.3.5. M Lhuillier
3.6. Philippines Bill Payment Market Size, 2011-2016
3.6.1. Philippines Domestic Bill Payment Market Segmentation, 2016
3.6.2. Market Share of Major Domestic Bill Payment Service Providers, 2016
Transaction Fees Comparison
3.7. Remittance Cost and Regulatory Changes (Domestic and International
Remittance)
Transaction Fees
Decreasing Remittance Costs
Regulations on Cost of Remittance
Regulatory Acts and Laws
3.8. Rising Penetration of Mobile Money Transfers
3.8.1. Introduction
3.8.2. Mobile Money Transfer
Mobile Money Transfer Platforms
Benefits of Mobile Money Transfer
3.8.3. Near Field Communication (NFC)
3.8.4. Mobile POS
3.9. Barriers to Entry and Relative Comparison of Bank and Non-Bank Remittance
Players (security and compliance issues)
3.10. Philippines Domestic Remittance and Bill Payment Future Projections and
Outlook, 2015-2019
3.11. Analyst Recommendations
Recommendations for Banks
4. Philippines International Remittance Market
4.1. Global and Philippines International Remittance Industry Introduction
Overview – Global and Philippines Remittance Flows
Remittance Inflow and Philippines Economy
Players in International Remittance Market
4.2. Remittance Working Model
4.3. Products and Services in Bank and Non-Bank Channels
Overview
Special Banking Products and Services for OFWs
Remittance Products from Thrift or Savings Banks

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Unbanked Recipients
Interlink Between Banks and Money Transfer Companies
4.4. Philippines International Remittance Market Size, 2011-2016
4.5. Philippines International Remittance Market Segmentation, 2011-2016
4.5.1. Major Flow Corridors, 2011-2016
4.5.2. Average Remittance Transaction per OFW on the Basis of Place of Work, 2013
- 2015
4.5.3. Average Remittance Transaction per OFW on the Basis of Major Occupation
Group, 2013 - 2015
4.5.4. Average Remittance Transaction per OFW on the Basis of Mode of
Remittance, 2013 - 2015
Agencies/ Local Offices, Banks, Door to Door, Friends/Co-Workers and others
4.5.5. Distribution of OFWs by Cash Remittance Sent, 2013 - 2015
4.6. Trends in Philippines International Remittance Market
Stable Growth in Philippines Remittance Inflow Wherein Global Remittance
Declined
Seasonal Remittance Patterns
Digital Trends in International Remittance
Rate of Unbanked Population
Adaptation of Latest Technologies
4.7. Competitive Landscape of Major Players in Philippines International
Remittance
4.7.1. Market Share of Major Banks and Non-Bank Channels, 2016
4.7.2. Strengths and Weaknesses of Banks and Major Non-Bank International
Remittance Players
4.7.3. Service Positioning, Pricing Strategy and Key Performance Indicators
4.7.3.1. Banco De Oro
4.7.3.2. The Bank Of The Philippine Islands
4.7.3.3. Philippine National Bank
4.7.3.4. Western Union
4.7.3.5. Metro Bank
4.7.3.6. MoneyGram
4.7.3.7. iRemit
4.7.3.8. WELLSFARGO
4.7.3.9. Xoom
4.8. Philippines International Remittance Market Future Outlook and Projections,
2017-2021
4.9. Cause and Effect Relationship in Philippines International Remittance Market
5. Macro Economic Factors Affecting Philippines Remittance Market
5.1. Gross Domestic Product of Philippines, 2011-2021

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5.2. Population and Number of Households in Philippines, 2011-2021
5.3. Trade Scenario and Exchange Rate Fluctuations in Philippines, 2011-2016
5.4. Disposable Income per Household in Philippines, 2011-2021
5.5. Overseas Filipino Workers, 2010-2015
5.5.1. Number of Land-Based and Sea-Based OFWs, 2010-2015
5.5.2. Land-Based OFW Distribution Across Countries And By Occupation, 2010-
2015
5.5.3. Demand For Money Transfer
5.6. Number of Bank Branches and ATMs in Philippines, 2011-2016
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LIST OF FIGURES
Figure 3-1: Philippines Domestic Remittance Market Size on the Basis of Transaction
Volume in USD Million, 2011-2016
Figure 3-2: Philippines Domestic Remittance Market Segmentation on the Basis of
Number of Transactions from Banking Channel and Non-Banking Channel in
Percentage, 2016
Figure 3-3: Philippines Domestic Remittance Market Segmentation on the Basis of
Types of Services Available along with their Contribution on the Basis of Number of
Transactions in Percentage, 2012-2016
Figure 3-4: Migration Trend in the Philippines in 2010 and Estimates for 2012, 2014
and 2016
Figure 3-5: Number of Pawnshops in the Philippines, 2011-2016
Figure 3-6: Number of BPO Employees in the Philippines in Thousand, 2011-2016
Figure 3-7: Philippines Domestic Bill Payment Market Size on the Basis of
Transaction Volume in USD Million and Number of Transactions in Million, 2011-
2016
Figure 3-8: Philippines Bill Payment Market Segmentation by Types of Payment on
the Basis of Number of Transactions in Percentage, 2016
Figure 3-9: Market Share of Bill Payments Service Providers in the Philippines on the
Basis of Number of Transactions in Percentage, 2016
Figure 3-10: Process of Sending Domestic M-Remittances through Cash-in/Cash-out
in the Philippines
Figure 3-11: Process of Sending Domestic M-Remittances through Mobile Phones in
the Philippines
Figure 3-12: The Philippines Domestic Remittance and Bill Payment Future
Projections on the Basis of Transaction Volume in USD Million, 2017-2021
Figure 4-1: Global Remittance Market Size on the Basis of Transaction Volume in
USD Billion and the Contribution of the Philippines in Percentage, 2011-2016
Figure 4-2: Remittance Working Model
Figure 4-3: Philippines International Remittance Market Size on the Basis of
Transaction Volume in USD Million, 2011-2016
Figure 4-4: Philippines International Remittance Market Future Projections on the
Basis of Transaction Volume in USD Million, 2017-2021
Figure 5-1: Gross Domestic Product of Philippines in USD Billion, 2011-2021
Figure 5-2: Population and Number of Households in the Philippines in Million,
2011-2021
Figure 5-3: Philippines Trade Scenario by Exports and Imports on the Basis of Value
in USD Billion, 2011-2016

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Figure 5-4: Exchange Rate of the Philippine Peso against US Dollar, 2011-2016
Figure 5-5: Disposable Income per Households in Philippines, 2011-2021
Figure 5-6: Number of Deployed Overseas Filipino Workers in Million, 2010-2015
Figure 5-7: Number of Bank Branches in Philippines, 2011-2016
Figure 5-8: Number of ATMs in Philippines, 2011-2016

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LIST OF TABLES
Table 2-1: Correlation Matrix of Philippines Remittance and Bill Payments Market
Table 2-2: Regression Coefficients Output for Philippines Remittance and Bill
Payments Market
Table 3-1: Rationale and Description for Philippines Domestic Remittance Market
Size, 2011-2016
Table 3-2: Philippines Domestic Remittance Market Size on the Basis of Total
Number of Transactions in Million, 2014-2016
Table 3-3: Rationale and Description for Philippines Remittance Market
Segmentation by Major Remittance Channel, 2016
Table 3-4: Philippines Domestic Remittance Market Segmentation on the Basis of
Number of Transactions from Banking Channel and Non-Banking Channel in
Million, 2016
Table 3-5: Rationale and Description for Philippines Remittance Market
Segmentation by Type of Services, 2012-2016
Table 3-6: Philippines Domestic Remittance Market Segmentation on the Basis of
Types of Services Available along with their Contribution on the Basis of Number of
Transactions in Million, 2012-2016
Table 3-7: Unemployment and Underemployment Rate in Different Region in the
Philippines in Percentage, 2016
Table 3-8: Region Wise Urbanization Rate in the Philippines in Percentage for 2010,
2012, 2014 and 2016
Table 3-9: Number of Banked and Un-Banked Municipalities in Philippines, 2011-
2016
Table 3-10: Number of Banked and Un-Banked Municipalities in Philippines on the
Basis of Percentage, 2011-2016
Table 3-11: Major Festivals in the Philippines
Table 3-12: Major Players in Philippines Domestic Remittance Market
Table 3-13: Market Share and Transaction Volume of Major Players in the
Philippines Domestic Remittance Market in Percentage and USD Million
Respectively, 2016
Table 3-14: Strengths and Weaknesses of Major Non-Bank Players in the Philippines
Domestic Remittance Market
Table 3-15: Palawan Pawnshop’s Rates for Domestic Remittance in the Philippines,
2016
Table 3-16: Cebuana Lhuillier Rates for Domestic Remittance in the Philippines, 2016
Table 3-17: LBC Express’ Rates for Domestic Remittance (Same Day Delivery) in the
Philippines, 2016

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Table 3-18: LBC Express’ Rates for Domestic Remittance (Next Day Delivery) in the
Philippines, 2016
Table 3-19: Western Union’s Rates for Domestic Remittance in the Philippines, 2016
Table 3-20: M Lhuillier Rates for Domestic Remittance in the Philippines, 2016
Table 3-21: Rationale and Description for Philippines Bill Payments Market Size,
2011-2016
Table 3-22: Domestic Bill Payment Market Size in the Philippines in USD Million,
2016
Table 3-23: Major Entities Involved in Philippines Bill Payments Market
Table 3-24: Competitive Landscape of Smart Money
Table 3-25: Competitive Landscape of Smart Money
Table 3-26: Overview of Online and Mobile Payment Gateways and Payment
Methods in the Philippine Bill Payments Market
Table 3-27: Barriers to Entry and Relative Comparison of Bank and Non-Bank
Remittance Players
Table 3-28: Relative Comparison of Banking and Non-Banking Remittance Channels
Table 3-29: Future Outlook for Philippines Domestic Remittance and Bill Payments
Market on the Basis of Revenue, 2017-2021
Table 3-30: Analyst Recommendations for Money Transfer Companies and
Pawnshops
Table 3-31: Analyst Recommendations for Banks
Table 4-1: Rationale and Description for Philippines International Remittance Market
Size, 2011-2016
Table 4-2: Rationale and Description for Philippines International Remittance Market
Segmentation by Major Flow Corridors, 2016
Table 4-3: Philippines International Remittance Market Segmentation by Inflows
from Major Flow Corridors on the Basis of Transaction Volume in Percentage, 2011-
2016
Table 4-4: Philippines International Remittance Market Segmentation on the basis of
Inflows from Major Flow Corridors in USD Million, 2011-2016
Table 4-5: Average Stated Transaction Fee, Hidden Currency Conversion Cost and
Total Fees Charged for Remittance of USD 1,000 for the US-Philippines Flow
Corridor in USD, 2016
Total Fees Charged for Remittance of GBP 1,000 (USD 1,355.9) for the UK-
Philippines Flow Corridor in USD, 2016
Total Fees Charged for Remittance of CAD 1,000 (USD 755.03) for the Canada-

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Total Fees Charged for Remittance of EUR 1,000 (USD 1,106.8) for the Western
Europe-Philippines Flow Corridor (Germany, France, Italy and Others) in USD, 2016
Total Fees Charged for Remittance of AUD 1,000 (USD 743.7) for the Australia-
Table 4-10: Average Cash Remittance per Male and Female Overseas Filipino
Worker on the Basis of Place of Work in PHP Thousands, 2013 - 2015
Table 4-11: Rationale and Description for Philippines International Remittance
Market Segmentation – Average Remittance Transaction per OFW by Major
Occupation Group, 2016
Table 4-12: Average Annual Cash Remittance per Male and Female Overseas
Filipino Worker on the Basis of Major Occupation Group in PHP Thousands, 2013 -
2015
Table 4-13: Average Cash Remittance per Overseas Filipino Worker on the Basis of
Mode of Remittance in PHP Thousands, 2013-2015
Table 4-14: Distribution of Overseas Filipino Workers by Amount of Cash
Remittances Sent in Units and Percentage, 2013-2015
Remittances Sent on the Basis of Percentage of Cash Remittance Set Aside for
Savings, 2015
Savings, 2014
Savings, 2013
Table 4-18: Month-wise Overseas Filipino Remittances in the Philippines in USD
Million, 2011 - 2016
Table 4-19: Major Players in Philippines International Remittance Market
Table 4-20: Market Share and Transaction Volume of Major Players in the
Philippines International Remittance Market in Percentage and USD Million
Respectively, 2016
Table 4-21: LBC Express International Remittance Transaction Volume in USD
Million, 2011-2016
Table 4-22: Strengths and Weaknesses of Banks and Major Non-Bank International
Remittance Companies
Table 4-23: Future Outlook for Philippines International Remittance Market on the
Basis of Transaction Value, 2017-2021

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Table 4-24: Cause and Effect Relationship Analysis between Industry Factors and
Expected Industry Prospects of the Philippines International Remittance Market
Table 5-1: Rationale for Gross Domestic Product of Philippines, 2011 - 2021
Table 5-2: Rationale for Population and Number of Households in Philippines, 2011 -
2021
Table 5-3: Rationale for Trade Scenario and Exchange Rate Fluctuations in
Philippines, 2011 - 2021
Table 5-4: Rationale for Disposable Income per Household in Philippines, 2011 -
2021
Table 5-5: Philippines Household Final Consumption Expenditure at Constant Prices
in USD Million, 2011-2016
Table 5-6: Rationale for Number of Land-based and Sea-based OFWs in Philippines,
2010 - 2015
Table 5-7: Number of Land based and Sea based OFWs from Philippines, 2010-2015
Table 5-8: Rationale for Number of Land-based and Sea-based OFWs in Philippines,
2010 - 2015
Table 5-9: Deployed Land-Based Overseas Filipino Workers on the Basis of Country
of Residence, 2010-2015
Table 5-10: Rationale for Number of Bank Branches and ATMs in Philippines, 2011 -
2016

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Philippines Domestic and International Money Transfer Industry Outlook to 2021 –Ken
Research
Ken Research latest Report on “Philippines Domestic and International Money
Transfer Industry Outlook to 2021 – Growing Number of Overseas Filipino Workers and
Technological Advancements to Aid Market Growth” provides a comprehensive
analysis of remittance and bill payments market in Philippines. The report covers
market size, segmentation on the basis of remittance corridor, mode of remittance,
major occupation group and distribution of OFWs by cash remittance sent for
international remittance market. For domestic remittance market it covers market
size, segmentation on the basis of remittance channel, type of services and major
flow corridors. It also includes the bill payments market in the country covering the
market size and segmentation by type of bills. The report also covers government
regulations in the market, competitive landscape and company profiles for major
players in the remittance and bill payments market. The report provides detailed
overview on future outlook & projections with analyst recommendations for the
industry.
The report facilitate the readers with the identification and in-depth analysis of the
existing and future trends, issues and challenges prevalent in the industry and
anticipated growth in the future depending upon changing industry dynamics in
coming years. The report is useful for industry consultants, remittance service
providers (MTOs), banks, local agents and other stakeholders to align their market
centric strategies according to ongoing and expected trends in the future.
Industry Overview
Philippines remittance market is led by the international remittances and domestic
remittances which are represented by the OFW remittance inflow, the domestic
remittances. During 2011-2016, the international and domestic remittance markets
have showcased a remarkable growth at a CAGR of ~%. Market growth can be
attributed to factors like increasing number of OFWs, growing infrastructure and
developmental activities, rising business sectors and increasing job opportunities
within the country, surging BPO sector and other related factors. Similarly, there had
been a tremendous growth in the Philippines bill payments market displaying a
CAGR of ~% during 2011-2016. The amplification exhibited by the market should be
owed to rising utility bills due to the rising consumption of energy, water, mobile
phones, internet facilities and other utilities.
Market Segmentation

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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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laborers will uphold their status as the largest deployed fraction of overseas workers
and will continue to account for the largest share of aggregate remittances.
Competitive Landscape
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. These formal payment channels, which include banks, money transfer
companies and pawnshops, serve a significant proportion of the Philippine
population. Major Players in the market include Palawan Pawnshop, Cebuana
Lhuillier, LBC Express, Western Union, M Lhuillier and others.
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 such as Banco De Oro, The Bank of
the Philippine Islands, Philippine National Bank, Metro Bank 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.
Key Topics Covered in the Report:
 Overview of Philippines Domestic Remittance Market
 Philippines Domestic Remittance Market Size
 Philippines Domestic Remittance Market Segmentation
 Growth Drivers of Philippines Domestic Remittance Market
 Competitive Landscape of Major Players in Philippines Domestic and
 Philippines Bill Payments Market Size
 Philippines Bill Payments Market Segmentation
 Rising Penetration of Mobile Money Transfers
 Philippines Domestic Remittance and Bill Payments Market Future Outlook
 Philippines International Remittance Market Overview
 Philippines International Remittance Market Size
 Philippines International Remittance Market Segmentation
 Trends in Philippines International Remittance Market

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 Philippines International Remittance Market Future Outlook
 Macroeconomic Factors affecting Philippines Remittance and Bill Payments
Market
 Overseas Filipino Remittance Philippines,
 Bitcoin Wallet Philippines Remittance,
 Remittance Flow Philippines,
 Money Remittance Business Philippines,
 Money Transfer Philippines,
 Pawnshops Remittance Volume,
 Online Remittance Philippines,
 Online Bill Payment Philippines,
 Remittance Growth Philippines,
 Migration in Philippines,
 Competition Remittance Market,
 Bill Payment mode Philippines,
 Money Transfer Operator Remittance Philippines,
 International Remittance Philippines,
 Inbound remittance Philippines,
 Outbound remittance Philippines,
 Philippines banks remittance volume,
 Philippines migration and remittance,
To know more about the publication, click on the link below
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-
services/philippines-money-transfer-remittance-market-report/121464-93.html
Related Reports by Ken Research
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Philippines Pawnshop Market Outlook to 2020 - Convenience with Pawning and
Remittance Services to Stimulate Growth
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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