Remittance to Philippines khaleej times | ADVERTISING SUPPLEMENT
Indispensable cashline Filipinos’ remittances from the UAE act as the lifeline of economy
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■■ Ishtiaq Ali Mehkri he UAE is one of the top sources of foreign remittances to Philippines. The amount of funds transferred from Filipino expatriates now touches the strategic mark of $2 billion annually. This is one of the biggest and most consolidated remittances to the Southeast Asian country from the Middle East. Statistics say that the volume of transfer has grown by around 8 per cent over the last couple of years. Economic cooperation and investment profile between the two countries is on the rise, and this has further cemented their relationship.
It is estimated that more than 700,000 Filipinos live and work in the UAE, and is the third largest expat community in the Arab country after Indian and Pakistani nationals. The Philippines’ Central Bank acknowledges that the UAE is one of the biggest contributors of money transfers, along with the United States, Saudi Arabia, Singapore, United Kingdom, Japan, Qatar, Hong Kong and Germany. Remittances from across the globe are equivalent to 12 per cent of the GDP; and according to the International Monetary Fund, this factor has made it the 13th largest economy in Asia. Philippines’ public debt, nonetheless, is around 37 per cent of its GDP, and government spending amounts to 19 per cent of total annual budget. The UAE is the Philippines’ secondlargest trading partner in the Middle East, with bilateral trade growing at a pace of 9 per cent annually. Philippines’ exports to the UAE account for $300 million, whereas imports touch $500 million. Tourism is another sector that has buoyed foreign remittances, as a large number of Emiratis now prefer to holiday in Philippines. The third largest economy in the ASEAN region, Philippines’ growth outlook remains positive. It has successfully addressed the unemployment syndrome, as it stands today at 6.7 per cent, and this factor has helped alleviate the lot of the poor — and at the same time boost foreign exchange reserves. Many of the macroeconomic indicators of the country are promising. It has remained resilient to global upheavals. A country of over 100 million people, agriculture constitutes a major component of its economy, whereas industrial production, electronics, apparel, shipbuilding and processed food and beverages are other prime revenue generation avenues. The country also has a decent industrial base, and a robust entrepreneurial sector. A large number of Filipinos are over-
seas workers in the region and beyond, spread up to the Gulf and the European Union, which is a blessing in disguise. Moreover, the country’s consumption and production pattern is unique in essence and this has helped it overcome poverty in the shortest possible time. With Philippines gradually introducing long-term reforms and lifting moratorium on opening of new banks, its foreign exchange reserves are likely to touch the $100 billion mark. Official sources in Manila say that the flow of remittances to the Philippines has seen a steady rise this year. The rise
is recorded at 23 per cent compared to last year’s record, making it the third largest remittance volume worldwide this year, the World Bank confirmed. The country is expected to be the third largest recipient of cash transfers worldwide, standing to absorb $33 billion in remittances this year next to India ($65 billion) and China ($61 billion). This will naturally drive domestic demand, fueling the growth of the economy. As a set back, however, Philippines saw a downslide from Saudi Arabia, as remittances fell from $2.3 billion to a mere $1.5 billion. The Central Bank says,
“The sustained increase in remittances was supported by stable demand for skilled Filipinos abroad.” Data from the Philippine Overseas Employment Administration also proved that 1.14 million more Filipino workers were hired abroad in 2017. Authorities have set a four per cent growth target for both personal and cash remittances this year. Cash remittances from about 12 million Filipinos living and working abroad contribute about 10 per cent to the country’s output as measured by gross domestic product. — mehkri@khaleejtimes.com
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LuLu Exchange
Pioneering innovations
LuLu Exchange remains at the forefront of technological innovation in the remittance sector Remittances play an important role in the development of Philippines’ economy and is a major source of income for many families. With personal remittances in August rising 6.4 per cent to $20.72 billion from $19.48 billion in the same period last year, according to Bangko Sentral ng Pilipinas (BSP) reports, Philippines’ remittance growth is on an upward growth trajectory. Data
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also shows that the bulk, or 82.5 per cent, of the cash remittances in the first eight months came from the GCC, U.S., Singapore, Japan, the U.K., Germany, and Hong Kong. At present, some 12 million Filipinos live and work abroad, with the UAE being home to a large section of that population. Assisting remittances to Philippines is LuLu Exchange, an ISO 9001: 2015 certified organisation, which has over the years grown to become the leading financial services brand trusted by expats to send their hard-earned money home. With products like ‘LuLu Now’, which allows immediate credit to designated bank accounts instantly, LuLu Exchange remains at the forefront of technological
innovation in this sector. The upcoming ‘LuLu Money’ app will have various features including instant online transactions, payment tracking in real time and payment history, among others. With plans to move nearly 30 per cent of its transactions on to the digital platform by 2020, LuLu Exchange is committed to remain on the digital fast track. Besides remittances, customers can exchange foreign currency at competitive rates and avail other valueadded services like the purchase of national bonds and mobile top-up for their home country, among others. The organisation also offers the Gold Card, which allows customers to obtain a host of benefits at LuLu Exchange bureaus, and discounts at various other shopping and hospitality partners. LuLu Exchange has also introduced e-signing facility at its branches. The option allows customers to verify the details of the transaction and digitally sign on the receipt presented to them on the e-tablet present on the counter, which then automatically sends the copy to customer’s email address. Customers are also provided the physical copy of the receipt containing the signature if required by them. LuLu Exchange, which has been voted a Superbrand two years in a row – in 2016 and 2017, currently has over 170 branches spread across the UAE, Oman, Kuwait, Qatar, Bahrain, India, Seychelles and Philippines.
RAKBANK
Convenient interest-free transfers Send money instantly to Philippines with RAKMoneyTransfer RAKBANK offers customers instant money transfer service to Philippines through its award-winning *RAKMoneyTransfer (RMT) service in partnership with Cebuana Lhuillier, a Philippinesbased financial institution. The beneficiary can conveniently collect the cash immediately from any of the 1,800 Ce-
buana Lhuillier branches with no deduction charges on the amount received. The Bank extends the utmost convenience to customers that need to send money instantly to the Philippines, whereby they can now send money using their RAKBANK Credit Card and enjoy up to 55 days interest-free period and no cash advance fees. With the best in market exchange rates, this service is offered to RAKBANK customers at a nominal flat fee of Dh20. All the customer has to do is simply use their RAKBANK Digital Banking App, or visit any RAKBANK branch and
provide their RAKBANK account or Credit Card number along with the Beneficiary’s name and details and send up to 50,000 Filipino Peso per transaction. The customer will then receive a transaction PIN code through SMS that they can share with their beneficiary in the Philippines. With the PIN code and their official ID card, the beneficiary can easily collect cash at any Cebuana Lhuillier’s branch 24x7x365. *Remittance Product of the Year in the Middle East by The Asian Banker.
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UAE Exchange
New money transfer mobile app and website Multiplies customer convenience with preferential exchange rates Now remittances to The Philippines is seconds away. UAE Exchange, the leading global money transfer, foreign exchange and payment solutions brand, announced the launch of its new money transfer mobile app and website in the United Arab Emirates, multiplying customer convenience with preferential exchange rates. The mobile app has features to track forex rates and fees via graphs so that users can calculate the best times to transfer money. UAE Exchange customers, in the UAE, can now transfer money internationally by logging on to the money transfer mobile app or the website (http://ae.uaeexchange.com), and take advantage of multiple options to send and deliver funds. The online platforms bring convenience, flexibility and a slick user experience along with the best exchange rates. On the occasion of the launch, Promoth Manghat, CEO, UAE Exchange Group, said, “Innovation in the digital space is a significant part of our overarching strategy towards service excellence. We are delighted to extend our online money transfer services to our customers in the UAE. This is a giant digital leap for us in our flagship market. We thank the Central Bank of the UAE
for their continued support and guidance in our digital journey, wherein we are also actively driving the UAE’s digital agenda forward.” Now with services available online, customers can transfer money any time and from anywhere in the UAE. The online platforms provide multiple options to the customers to pay for the money transfer from their bank accounts in the UAE including the Payment Gateway System (PGS) and the Direct Debit System (DDS).
Mobile app has features to track forex rates and fees via graphs for users to calculate the best times to transfer money.
Apart from transferring money to the beneficiaries’ bank accounts, customers can also opt for cash payouts at more than 200,000 agent locations in 165 countries around the world. In addition to the industry standard notifications and trackers for money transfer transactions, customers will receive email and SMS rate alerts. The mobile app also has a map feature that can be used to locate the nearest UAE Exchange branch. UAE Exchange has built security features into the money transfer portal and the mobile app, available in both iOS and Android.
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Know your jargon Diaspora: A community of people who live outside their country of origin and maintain a connection to their homeland or ancestry. Diaspora communities often remain emotionally and financially connected to their home communities. Migrant workers are also included within the category of diaspora. Diaspora investment: The savings set aside by diaspora members with the purpose of financing personal projects in their home countries to improve their wealth, and generate financial returns or impact on development. FinTech: A broad term referring to technologically-enabled financial innovation that results in new business models for financial services.
Here is a simple guide to definitions and concepts frequently used in the field of money transfer Remittances: Cross-border, person-toperson payments of relatively low value. The transfers are typically recurrent payments by migrant workers to their relatives in their home countries to cover a substantial part of their daily expenses. Remittance service provider (RSP): An entity, operating as a business that provides a remittance service for a fee to end-users, either directly or credited to an electronically-funded account, or partnering with agents owning access point networks such as stores, post offices or bank branches to collect the money to be sent.
ers who send remittances and their relatives who receive them in their countries of origin. Migrant worker: “A person who is to be engaged, is engaged or has been engaged in a remunerated activity in a State of which he or she is not a national.” (United Nations) Access point: A physical location where remittance recipients can collect their money or cash-in and cash-out to/from any stored-value device (e.g. a bank branch, post office, mobile network agent, retail store or self-service machine). Agent: An entity that captures or distributes remittance transfers on behalf of a remittance service provider (RSP). Anti-money laundering/Combating the financing of terrorism (AML/CFT): Policies to detect and reduce money laundering and terrorism financing.
Remittance outflow: Flow of remittances leaving a country.
Banking institution or Bank: A financial institution holding a banking licence.
Remittance inflow: Flow of remittances coming into a country.
Blockchain: An open, distributed ledger that can record transactions in digital currencies (or tokens) between two parties and encrypted within “blocks” in a verifiable and permanent way. Bitcoins are one of the digital currencies used in blockchains. Applied to remittances, blockchains allow cross-border remittances among registered individuals or businesses without bank settlement and clearing systems.
Remittance corridor: Also known as remittance market, it specifies the remittance flow between an originating country (or region) and a receiving country (or region). Remittance families: Transnational households composed of migrant work-
Migration flows: Cross-border movement of citizens from one country to another. Money Transfer Operator (MTO): A service provider that receives payment in cash, digital payment or by bank transfer, from the sender for each transfer (or series of transfers) without requiring the sender to open an account. Mobile Network Operator (MNO): A provider of wireless communication services that can also play a role in transferring remittances through the mobilisation of its agent network as access points and as an issuer of electronic money. Non-Bank Financial Institutions (NBFI): A financial institution that does not have a full banking licence, but facilitates bank-related financial services, such as investment, risk pooling, contractual savings, and market brokering. Online service: Method to remit money using the Internet or the telephone network as access channels; bank account or credit/debit/prepaid cards as funding sources; and computers, phones or smartphones as access devices. Online services replace physical and in-cash interactions by remote electronic transactions.
Source: Sending Money Home: Contributing to Sustainable Development Goals, one family at a time published by International Fund for Agricultural Development (IFAD).
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Sharaf Exchange
Send tokens to loved ones back home Sharaf Exchange has special treats in store for the community The Sharaf Group is a prominent business conglomerate headquartered in the UAE. With a strength of over 9,500 people across 40 countries, the Group operates across several business sectors, key to businesses and consumers alike. Sharaf Exchange is the Financial Services arm of Sharaf Group. Operating across 26 branches in the UAE, with a strong management team, Sharaf Exchange is a trusted solutions partner for Home Remittances, Corporate TT payments, Salary Processing Solutions, Prepaid Cards, Currency Exchange Solutions, Labour Guarantee processing among other competitively priced and well-structured services. “The Filipino community is one of our favourite customer segments, because they appreciate the value of trust, transparency and sincere service. They are not those who opt for cheaper charges risking their money. We are in the process of launching several focused initiatives for the community to make sure that we move closer to their hearts as a service and as a trusted, reliable brand,” says Suresh Kumar, CEO of Sharaf Exchange. “We have strong relationships with all major banks and money transfer services to make sure that the money sent by our Filipino patrons, reach their families very quickly. We are
Ipinagmamalaki ng Sharaf Exchange, kasama ang Sharaf DG, Sharaf Tours, Sharaf Shipping, Times Square Centre, Sanrio at 15 retail brands na bumubuo sa Sharaf Group ang aming handog na sorpresa na para sa inyong lahat.
continuously working on adding more banking relationships and partners in the region to make sure that we keep bettering our own benchmarks every day,” adds Kumar. “The October–December period each year is a festive season and is family bonding time for the whole world. As a community, Filipinos’ love for their families is actually folklore material! This translates to an exciting bonding period where they express their love through sending cash and gifts back home. As a trusted service partner, we want to enhance this time of joy, love and care and provide them with exciting benefits for their patronage of Sharaf Exchange. We have devised exciting surprises for them at our branches. Try us Kabayan,” urges Kumar. Rest assured, Sharaf Exchange has big plans for their Filipino patrons! Kabayan, maraming salamat sa patuloy na pagtangkilik. At dahil mahal kayo ng Sharaf Exchange, kami ay patuloy na maghahatid ng serbisyong mula sa puso.
SURPRISES GALORE! When you send money to your loved ones in Philippines this season!
Visit us to find out. Welcome Kabayan!