Global Money Transfer (Remittances) Market: 2012 Edition- Koncept Analytics

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Global Money Transfers (Remittances) Market -------------------------------------------------------------------2012


View Report Details Executive Summary Remittances are an important source of income for households, particularly in developing countries. Remittances are gaining importance in the economic planning of all major developing economies of the world. With globalization and growing socio-political activities, more and more people from underdeveloped or developing economies are working outside the countries of their origin. Remittances are being considered as an important financial resource for development as well as a social change by financial planners in developing economies. The worldwide inflow and outflow of remittances is rising constantly since past several years with the exception of 2009, which was characterized by global economic slowdown. The developing nations which include both low-income and middle income countries account for the majority of the global remittance inflow with majority contribution from India, China, Mexico and Philippines, due to their large emigrant population. The largest source of remittance flow to developing regions is high income countries including the US and Western Europe, with the GCC countries fast developing as an important source. The companies operating in the global remittance market are faced with strong competition with few large competitors and numerous small and niche competitors. The leading money transfer organization like Western Union, Money Gram, Euronet, and other independent players compete on the basis of technology, price and quality of service offered to remitters. The report analyzes the global remittances market with focus on India, China, Mexico and Philippines. The key trends observed within the market include exchange rate, fluctuating remittance cost, regional employment or unemployment affecting remittances, number of RSPs and cost variation across India and China and dominance of cash prices over the remittance market. The global remittance market faces several challenges which include the taxes which are imposed by the government on remittances and numerous legal and regulatory hurdles. The major factors which will contribute in the growth of the industry include growing international migration, rising employment rate and global economic growth. By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.


Remittance is a transfer of money by a foreign migrant worker to his or her families in home country. Global Remittance Inflow (2007-2011)

US$ Billion

In 2011, the global remittance inflow increased to US$..... billion in 2011 in comparison with US$..... billion in 2010, showing a growth of approximately ….%. This increase was mainly due to improvement in employment and incomes of migrants drawn by booming economies in the OECD and non-OECD high income countries, a shift from informal to formal channels, and better recording of flows. The global remittance outflow recorded an increase of approximately …..% from US$..... billion in 2010 to US$…. billion in 2011.

•Industry Developments and trends:

2007

2008

2009

2010

2011 -Regional employment/unemployment affecting remittances -Exchange rate - Fluctuating remittance cost - Number of RSPs and cost variation across India and China - Cash services dominate the Remittance market

Global Remittance Inflow (2007-2011)

Market Growth Drivers

US$ Billion

-Global Economic Growth -Growing International Migration -Rising employment rate

2007

2008

2009

2010

2011


Developing countries are the main source of emigrants and represent the largest share of remittance inflows globally. As of 2011, the US accounted for the highest outflow of remittances with nearly US$.... billion. Switzerland was the second largest remittance sending country accounting for US$..... billion, followed by Saudi Arabia and the Russian Federation.

US$ Billion

Top 10 Addressers of Remittances (2011)

Kuwait

Korea, Republic

Spain

Italy

France

Germany

Russian Federation

Saudi Arabia

Switzerland

USA

 Due to the large emigrant population in developing countries, global remittance flows to developing countries are likely to grow from US$..... billion in 2009 to US$..... billion in 2012 with an estimated CAGR of …..% for the cited period.

 The largest developing market in 2012 is expected to be East Asia and the Pacific region since remittance flows to this region is estimated to increase by approximately ….% rising from US$.... billion in 2011 to US$......billion in 2012. Remittance Flow to East Asia and Pacific Region (2009-2012E)

Remittance Flow to Developing Countries (2009-2012)

US$ Billion

US$ Billion

)

2009

2009

2010

2011

2012

2010

2011

2012E


The Global Remittance Market is highly fragmented and companies face intense competition. In 2011, the market leader in terms of revenue was Western Union

US$ Billion

Global Remittance Inflow Forecasts (2009-2014F)

2009

2010

2011

2012F

2013F

2014F

The four largest remittance receiving countries in the world, India, China, Mexico, and the Philippines, accounted for approximately ….% of the top 10 recipients of migrant remittances in 2012. On the competition front, Western Union is the leading company in the market for remittance market world over, with approximately ……% of the market share for the year 2011, followed by MoneyGram with ……% and ….. with …..%.  The global money transfers (Remittance) market is likely to grow from US$......... billion in 2009 to US$........... billion in 2014, at a CAGR of ……….%.

Key Issues faced by the respective industry include: Stringent Legal and Regulatory Requirements, Difficulty in Establishing Network of Access Points and Tax Imposition on Remittances

Note: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa


Table of Contents

List of Graphs & Tables

1. Remittances: An Overview List of Charts

1.1 Definition 1.2 Remittance Marketplace 1.2.1 Components of Remittance Marketplace 1.2.2. Recruitment Market Value Chain 2. Global Remittance Market

-Remittance Inflow Growth -Remittance Outflow Growth 2.1. Remittance Market by Income Characteristics 2.1.1 Low Income Countries 2.1.2 Middle Income Countries 2.1.3 High Income Countries 2.2 Remittances Market by Region 2.2.1 Developing Countries 2.2.2 East Asia and Pacific Region 2.2.3 Europe and Central Asia Region 2.2.4 Latin America and Caribbean Region 2.2.5 Middle East and North Africa Region 2.2.6 South Asia Region 2.2.7 Sub Saharan Africa 2.3 Remittances Market by Largest Receiving Countries 2.3.1 India 2.3.2 China 2.3.3 Philippines 2.3.4 Mexico 3. Market Dynamics

Basic Account-based Model Basic Non-account Based Model Value Chain: Remittance Industry Global Remittance Inflow (2007-2011) Global Remittance Outflow (2007-2011) Top 10 Addressers of Remittances (2011) Remittance Flow to Low Income Countries (2009-2012) Remittance Flow to Middle Income Countries (2009-2012) Remittance Flow to High Income Countries (2009-2012) Remittance Flow to Developing Countries (2009-2012) Remittance Flow to East Asia and Pacific Region (2009-2012) Remittance Flow to Europe and Central Asia Region (2009-2012) Remittance Outflows from Western Europe Remittance Inflows to Eastern Europe Prices Driving Remittances to Central Asia (Q307-Q312) Remittance Flow to Latin America and Caribbean Region (2009-2012) Remittance Flow to Middle East and Africa Region (2009-2012) Remittance Flow to South Asia Region (2009-2012) Remittance Flow to Sub Saharan Africa (2009-2012) Top 10 Recipients of Migrant Remittances (2012) Top 10 Recipients of Migrant Remittances as % of GDP (2011) Remittance Flows to India (2001-2011) Private Transfers to India (Q110-Q112) Remittance Flows to China (2001-2012) Remittance Flows to Philippines (2001-2012) Remittance Flow to Mexico (2001-2012) Distribution of Remittances by Channel (2001-2011) Change in Employment Rate from Q109 to Q411 Migrant and Natives’ Employment in the US (Mar-09 to Sep-12) The US Migrant Employment by Sector (Jan-Sept 2009 to Jan-Sept 2012)


3.1 Key Trends and Developments 3.1.1 Regional Employment/Unemployment Affecting Remittances 3.1.2 Fluctuating Remittance Cost 3.1.3 Exchange Rate 3.1.4 Number of RSPs and Cost Variation across India and China 3.1.5 Cash Services Dominate Remittance Market 3.2 Growth Drivers 3.2.1 Global Economic Growth 3.3.2 Growing International Migration 3.3.3 Rising Employment Rates

3.3 Challenges 3.3.1 Stringent Legal and Regulatory Requirements 3.3.2 Difficulty in Establishing Network of Access Points 3.2.3 Tax Imposition on Remittances 4. Competitive Landscape

Competitive Overview Market Share 5. Company Profiles 5.1 The Western Union Company 5.1.1 Business Overview 5.1.2 Financial Overview 5.1.3 Business Strategies -Focus on Marketing Initiatives -Expansion through Strategic Acquisitions 5.2 MoneyGram International, Inc. 5.2.1 Business Overview 5.2.2 Financial Overview

Remittance Cost for Top 20 Largest Bilateral Remittance Corridors (Q109-Q312) Remittance for Selected Source Countries (Q312) Exchange Rate of Indian Rupee against US$ (Q110-Q312) Exchange Rate of Mexican Peso against US$ (Q110-Q312) Exchange Rate of Philippine Peso against US$ (Q110-Q312) Number of RSPs in Common Sending Countries (November 2012) Average Cost by Product Type (November 2012) Global GDP Growth (2001-2011) International Migrants Population (2000-2010) Global Employment Rates (2002-2011) Money Transfer - Organization Share by Revenue (2011) No. of Agent Locations of Major Money Transfer Organizations (2011) Western Union’s Revenue Share by Business Segments (2011) Western Union’s Money Transfer Revenues (2007-2011) MoneyGram’s Revenue Share by Business Segments (2011) MoneyGram: Agent Locations (2011) Money Gram’s Money Transfer Revenues (2007-2011) Euronet’s Revenue Share by Business Segments (2011) Euronet’s Money Transfer Revenues (2007-2011) Global Remittance Inflow Forecasts (2009-2014F) List of Tables Change in Mexico’s Remittance Receipts (2007-2012) Dependent & Independent Variables (2001-2011) Correlation Matrix Model Summary – Coefficient of Determination Regression Coefficients Output


5.2.3 Business Strategies -Expansion through Strategic Alliances -Growth through Geographic Expansion 5.3 Euronet Worldwide, Inc. 5.3.1 Business Overview 5.3.2 Financial Overview 5.3.3 Business Strategies -Focus on Money Transfer Segment -Expansion through Acquisitions 6. Market Outlook 6.1 Market Forecast 6.2 Forecast Methodology 6.2.1 Dependent and Independent Variables 6.2.2 Correlation Analysis 6.2.3 Regression Analysis


View Report Contact Us:Details These are abridged and sanitized sample pages from the comprehensive report on the “Global Money Transfer (Remittances) Market”. To know more about this report or for any customized research requirement, please contact the following:

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Vikas Gupta BD Manager

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