Research on the Philippine remittance market shows that the country will experience tremendous growth until 2023.
The study, conducted by the respected group Ken Research, reveals that the continued use of cryptocurrency will transform the financial sector in the country and will stimulate further growth.
According to the report, the Philippines should see growing international remittances, largely driven by a growing number of Filipino foreign workers (OFW) and by the adoption of new technologies to integrate traditional banking channels
The country will probably benefit from increased use of cryptography, biometric data and other technological advances that will revolutionize the mobile financial industry.
These approaches were finding rapid growth following the introduction and extensive use of mobile money transfer technologies. They are a big factor that could determine the future growth of the home remittance ecosystem in the country, including the payment of invoices.
The results of the research, contained in a full study entitled Philippines Money Transfer and Bill Payment Market Outlook to 2023 had a very interesting point. He showed that if the remittance sector continued to grow as it was doing, then the volume of remittances in the country would reach over $ 42 billion by 2023.
The study found that workers Foreign Filipinos (OFW) were by far the largest contributor to growth witnessed in the flourishing economy of the Philippines. The report notes that:
"The international remittance market in the Philippines will continue to be driven by greater migration of Filipinos to other countries."
Among the OFW, the study finds a curious scenario that is about to increase the remittance industry in the country. The impulse will derive from the growing sector of unskilled labor abroad.
"Unskilled workers and workers will retain their status as the largest fraction of overseas workers and will continue to account for most of the aggregated remittances."  In addition, an ever-expanding financial industry led by the population of banks across the country had offered banks the opportunity to improve their services, further increasing the rate of growth.
In December 2017, banks provided the largest channels through which the country remitted international transformed. But this trend will probably change soon.
There are other non-bank channels that take over, both in international and domestic remittances, and in bill payments.
Ethereum Key to adoption
Ethereum could have a major role to play in the remittance sector of the Philippines, according to research results.
The report explains that the Ethereum blockchain can help reduce the cost of remittances. By identifying Ethereum, the study finds that it is not designed as Bitcoin, which is basically just a cryptocurrency.
According to the study, Ethereum & # 39; s token ether (ETH) has the functionality to help reduce the cost of remittances sent to the blockchain. The ether is used as a gas or, more specifically, as a transaction tax on the network.
Decentralized applications (dApps) built on the blockchain and using Ether as gas can greatly reduce the amount of money used to complete these transactions.  Last month, the central bank of the country,
Bangko Sentral ng Pilipinas (BSP), the country's central bank announced the last few months that there were plans to collaborate with some commercial banks for the purpose of explore the use of blockchain technology.  The BSP noted that the new technology could help transform the South Asian nation's money transfer business and serve as a platform for financial inclusion.
International money transfer services such as MoneyGram, Western Union and Wells Fargo continue to dominate the remittance sector. However, national platforms such as LBC Express, among others, were developing a presence that would see competition improving the whole sector.
But the key could be in the adoption of cryptographic and blockchain technology.
Source: Ken Research – "Outlook for money transfer in the Philippines and forecasts of bill payments until 2023 – through national bank remittance channels and non-bank (pawn shops, MTO), remittance corridors and international channels, Bill Payment Segment "