- New Western Union research maps consumer sentiment in the
Philippines about current and future money movement capabilities
and needs
- Consumers agree that they will need to send and receive more
money in the next 12 months
- Research supports omnichannel approach to cross-border money
movement
Tech-savvy Filipinos seek choice above all for their future
international money transfer needs, according to the results of a
study commissioned by Western Union. Exclusive insights show that
while 44% of consumers currently prefer to receive money transfers
through digital platforms, almost 70% want to be able to choose how
they collect their funds in the future – be it in cash or
digitally.
The study results, which bolster Western Union’s recently
announced ‘Evolve 2025’ (E25) strategy of combining high-value,
accessible retail and digital financial services for the world’s
aspiring populations, explore consumer sentiment on money movement.
More than 2000 consumers across the Philippines who send and
receive money internationally were surveyed.
“As consumers look to the future, the principle of choice in how
to transfer money internationally is most appealing,” said Jean
Claude Farah, President of Middle East and Asia Pacific at Western
Union. “This resonates with what we see among our customer base,
who actively seek services that are convenient, fast and reliable,
based on their needs.”
“It amplifies the need for larger ecosystems, where retail and
digital platforms grow and evolve symbiotically,” Farah added. “At
Western Union, one of the key focus areas to accelerate growth in
the Philippines and around the world is just that - to build on our
core capabilities so that we can help grow, strengthen and evolve a
financial ecosystem that surrounds our customers. Through our
omnichannel approach, we believe that we can harness the power of
both the physical and digital touchpoints to serve all our
customers’ money movement needs.”
Digital money transfer platforms are used by many, but still
not all
World Bank data shows that the Philippines is the fourth-largest
inbound (receiver) market in the world, bringing in USD37 billion
in 2021. The Government and Central Bank have made significant
strides in driving digital transformation and encouraging inclusion
by creating and committing to a clear financial inclusion
strategy.
Western Union’s study results show, however, that there is still
more to do. While many consumers opt to use digital platforms, many
others do not.
Trust ranks highly as a top barrier for using digital money
transfer services among senders (31%) and receivers (23%).
Thirty-seven percent of receivers prefer face-to-face interaction,
while senders say process or customer experience prevents them from
doing so (15%). However, approximately 30% of senders and 14% 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.
Consumers say their remittances set to increase
Rising interest rates and increased cost-of-living expenses have
driven headlines around the world. Against a backdrop described by
the United Nations as the ‘largest cost-of-living crisis of the
21st century,’ consumers in the Philippines have been proactively
trying to cope.
Keeping pace with daily financial needs, 44% of senders in the
Philippines state that family support is the primary driving force
behind how much and how frequently they need to transfer money. In
line with this, 83% of the country’s receivers agree they need to
receive more money to support loved ones and family.
Meanwhile senders also struggle with a cost-of-living dichotomy.
Seventy-seven percent state that because cost-of-living has
increased in the country they send to, they have to transfer more
money. Yet 72% state that because cost of living expenses have
increased in the country they live in, they are unable to transfer
as much as they previously did. With that said, both send and
receive consumers agree that they expect transfers to increase in
the next 12 months - with 74% of senders and 80% of receivers
stating that their flow of money is set to go up.
“While many factors contribute to remittance flows, to remit is
a personal decision – most commonly to support loved ones and
family,” said Farah. “So, it follows that in the current economic
climate, receivers have strong influence over the frequency and
amounts their senders transfer. As the push-pull dynamic changes
over time, it is critical that consumers remain armed and supported
with the right money transfer tools in their time of need. That is
why we are focused on building a modern, adaptable platform that
provides a strong user experience for our customers. As we evolve
our business strategy in the Philippines, we look forward to
creating opportunities for our customers to better manage their
financial lives.”
Western Union in the Philippines
Western Union has been providing money-transfer services in the
Philippines for over 30 years and is deeply committed to the
country. It offers digital money transfer services in partnership
with Agents to over 95% of bank accounts, as well as some of the
leading e-Wallets, in the country. As at Q3 2022, the Company also
offers its services through over 24,000 retail Agent locations.
In October 2022, the Company announced its three-year strategy
to offer accessible financial services while staying connected to
its purpose to serve people and their communities. The search for
financial opportunity often leads consumers to cross borders to
begin life in a new country. Through Western Union’s strategy, the
Company will drive solutions to offer customers in the Philippines
the best end-to-end experience when moving money and to better
manage their financial lives.
About Western Union
The Western Union Company (NYSE: WU) is a global leader in
cross-border, cross-currency money movement and payments. Western
Union’s platform provides seamless cross-border flows and its
leading global financial network bridges more than 200 countries
and territories and approximately 130 currencies. We connect
consumers, businesses, financial institutions and governments
through one of the world’s widest-reaching networks, accessing
billions of bank accounts, millions of digital wallets and cards
and a substantial global network of retail locations. Western Union
connects the world to bring boundless possibilities within reach.
For more information, visit www.westernunion.com.
About Western Union’s research study
The research was commissioned by Western Union to Censuswide.
Censuswide surveyed 2003 consumers aged 18 and above - who send or
receive international money transfers in the Philippines. The
research was conducted between 31 October 2022 and 8 November 2022.
Censuswide abide by and employ members of the Market Research
Society, which is based on the ESOMAR principles.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221120005010/en/
Western Union Saadia McGlinchey; Saadia.McGlinchey@wu.com
Karen Santos; Karen.Santos2@westernunion.com
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