- New Western Union research maps consumer sentiment in the
United Arab Emirates about current and future money movement
capabilities and needs
- Consumers expect to send and receive more money in the next
12 months
- Research also reveals that 46% of consumers have
multi-channel preferences for cross-border money movement in the
future
Citizens and residents of the United Arab Emirates (the UAE)
expect to transfer more money internationally in the next 12
months, according to a study commissioned by Western Union.
Exclusive insights show that 76% of consumers who send money and
75% of consumers who receive money, respectively, expect to
transfer and collect even more funds over the next year.
The study, which surveyed more than 1,000 UAE-based citizens and
residents who send and receive cross-border money transfers,
explores consumer sentiment on how, when and why they move money.
The results bolster Western Union’s recently announced ‘Evolve
2025’ (E25) strategy of combining high-value, accessible retail and
digital financial services.
Family support is highlighted by 60% of senders as the primary
reason for transferring money overseas. Saving for the future comes
in a distant second, ranked by 11% of senders. A well-known melting
pot of cultures, the UAE is home to more than 200 nationalities and
ranks among the top most talent competitive countries. Some of its
more sizeable communities come from the world’s largest
remittance-receiving economies.
Caring for family back home is further re-enforced as one of the
main factors driving the number and amounts of overseas transfers.
Furthermore, as increased living expenses and global currency
fluctuations create additional pressure on personal finances, 74%
state that because of higher cost of living in the country they
send to, they need to transfer more money. Seventy-one percent
state that they take the opportunity to send more money when the
currency value falls in their receiving country.
“To remit is often a very personal decision. Western Union data
also supports that one of the most common reasons why consumers
remit is to support loved ones and family,” said Jean Claude Farah,
President of Middle East and Asia Pacific at Western Union. “So it
is only natural that as the global economic climate challenges
affordable ways of living, family support takes precedence over
everything else as senders move money.”
“Continuously attracting such a diverse range of nationalities
is a true testament to the UAE’s efforts to position itself as a
global partner, and an attractive and influential economic hub,”
Farah added. “We believe that these ongoing efforts will also mean
that the UAE will continue to ride the top spot as one of the
biggest senders of remittances in the world. It also makes it even
more incumbent on us as businesses to connect people to
opportunity; Western Union has been doing this for consumers in the
UAE for almost 25 years and is deeply committed to the country. As
we evolve and grow in the years ahead, we remain steadfast in
enabling an environment that drives financial inclusion and creates
pathways for long-term economic success across the country’s
societies.”
Cultures and familial ties influence
the frequency and flow of money
Sending money shortly after payday regardless of wider economic
circumstance (34%), or family needs back home (32%) are the two
best-known drivers of money transfer flow and frequency. However,
Western Union’s study also shows a third factor: almost a quarter
(21%) of consumers say they focus on sending money during festive
occasions such as Ramadan, Christmas, New Year and Diwali, as well
as other special occasions, such as birthdays, graduations and
anniversaries.
In an interesting reversal of this trend, 37% of UAE consumers
who receive money transfers also say frequency and amount is
influenced most strongly by festive and other special occasions,
ranking higher than family needs (27%) or the timing of their
sender’s paychecks (18%).
“We understand that diverse populations have equally diverse
needs. Festive seasons and special moments are a great example,
whereby every year, we see an uptick of approximately 6% in the
volume of remittance transactions as these occasions approach,”
Farah said. “Western Union offers a broad mix of digital and retail
channels to serve the varying payment needs of millions of
customers worldwide. We believe that the trust we enjoy with
consumers in the UAE and around the world puts us in a unique
position to help millions of people bring their best to
society.”
Tech-savvy population seeks choice in
the future
As consumers consider how they would like to send and receive
money in the future, they value choice above all. Western Union’s
study shows that 42% currently send money across borders
exclusively through digital channels. However, as they look ahead,
46% want to be able to choose how they send their funds, whether in
cash or digitally.
A similar sentiment is echoed among receivers. Forty-three
percent currently receive money through digital channels only. In
the future, 57% want to be able to choose between digital and
retail channels when collecting their funds.
Those who do not use digital channels, say the top barrier
preventing them from sending or receiving money online is their
preference for face-to-face interaction, followed by trust. Process
or customer experience is also another commonly cited barrier.
Farah concluded, “Findings from the research show that while
most consumers can be considered digital-first, many ultimately
want to able to choose between digital and retail options, based on
their convenience and needs. However, being able to trust in online
services is critical, and as an industry, we have work to do
helping consumers overcome their concerns. Ultimately, our end goal
will always be to ensure that we can support even more people’s
financial needs, wherever they are geographically, culturally or
economically.”
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 1003 consumers aged 18 and above - who send or
receive international money transfers in the United Arab Emirates.
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/20221216005152/en/
Western Union Saadia McGlinchey; Saadia.McGlinchey@wu.com
Karen Santos; Karen.Santos2@westernunion.com
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