With dollar remittances from expatriate Filipinos expected to grow further this year, the money transfer business in the country is seen to become more competitive with more players joining the industry.
Heightened competition will also force companies to offer better services to clients at lower rates, thereby solving a longtime complaint about pricey remittance services, newly appointed MoneyGram country manager Alex Chan Lim said.
In an interview, Lim said the projection of the Bangko Sentral ng Pilipinas of a 6-percent growth in remittances this year was a conservative estimate, given that some remittances sent through informal channels were not reported to regulators.
“Definitely, we will continue to see growth, and the industry will become even more competitive,” Lim said, pointing to the growing number of international and domestic remittance firms servicing the local market.
Lim downplayed the impact of various international crises on the amount of dollars sent home by expatriate Filipinos, saying that demand for skilled Filipino workers remains strong in key jobs markets abroad, including the strife-torn Middle East.
Latest government data showed that $21.3 billion in remittances were sent by expatriate Filipinos to local beneficiaries in 2010. This is expected to grow to more than $30 billion in 2011, according to the World Bank.
Lim said MoneyGram expanded its 8,300-strong partner agent network last year and would likely be further expanded this year.
“We expect significant growth in our Philippine business this year with the presence of our office, our expanding network and new products,” Lim said.
In particular, the MoneyGram chief noted that there was a growing demand for its new “cash-to-account” service where remitters abroad can send funds directly to their beneficiaries’ bank accounts.