In 2022, the World Bank revealed that global remittances had experienced a remarkable surge, reaching an estimated $794B. These financial inflows accounted for over 15% of the gross domestic product (GDP) in 25 low and middle-income countries (LMICs) worldwide. Notably, according to the United Nations Sustainable Development Goals (SDGs), these remittances have the potential to increase a family’s disposable income by more than 50%.
Despite the significant role played by increased remittances in developing the economies of LMICs, the cost associated with transferring money remains disproportionately high.
Addressing this issue, WorldRemit is striving to make quick, secure, and cost-efficient services more accessible throughout the Philippines. As Asia’s largest recipient market for WorldRemit and one of the largest in the world, the Philippines is a crucial focus for the London-based digital remittance service. Since 2011, the company has steadily facilitated over 20 million money transfers to the Philippines, empowering families and individuals with their digital remittance platform.
Even in the face of the COVID-19 pandemic and the mass displacement of Overseas Filipino Workers (OFWs), remittances have demonstrated resilience. WorldRemit’s transition from traditional offline services to the digital age, coupled with its ability to adapt to the evolving needs and circumstances of Filipinos, contributed to a remarkable 50% growth in users during 2020.
“We have not seen any pullback in demand with the global turbulence in the economic markets. If anything, remittances continue to play a much stronger role in people’s lives, particularly in the market in the Philippines,” according to Robert Mitchell, WorldRemit Chief Financial Officer.
Earl Melivo, the Head of APAC at WorldRemit, attributed this success to the brand’s swift adoption of mobile money channels and its extensive network of over 25,000 pickup locations.
Despite challenging economic conditions in both the Philippines and the countries where OFWs are employed, along with a weaker peso, the unwavering courage and resilience of OFWs in sending remittances to their loved ones remain strong. These remittances play a vital role in everyday expenses, such as medical bills and utility payments, and thus, their significance persists even during periods of economic recession, as they contribute to the recovery of economies.
In 2022, the personal remittance market experienced steady growth, with annual revenues increasing by 2% to 3% and an estimated global worth of $1.5T. As of last October 2022, the market has successfully returned to pre-pandemic levels, displaying a growth rate of 4% to 5%.
“Our agility and capacity to offer essential services ensured that transfers were still made available to senders despite strict restrictions and lockdowns in many host countries. Looking back gives us a better understanding of how digital platforms adapt and develop with the times. This helps WorldRemit build trust among migrant workers as a longtime partner in global remittances,” said Earl Melivo, Head of APAC at WorldRemit, referring to the brand’s quick adoption of mobile money channels and the ability to maintain a network of over 25,000 pickup locations.
WorldRemit’s expansion plans in the Philippines involve significant investments aimed at further enhancing customer experience and forging partnerships across the payment ecosystem. Executives like Earl Melivo and Mitchell are gearing up to tackle these challenges head-on. With a steadfast commitment to empowering people financially and socially, WorldRemit is poised for a promising future in the digital age.