How financial inclusion in The Philippines can improve your money transfer options
According to The World Bank, financial inclusion means that “individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way”.
So, does this impact global money transfer?
Helping individuals to access personal bank accounts is the first step as it account allows people to store money safely, and send and receive digital payments as well as accessing cash services.
Financial inclusion in The Philippines
It has a young, tech-savvy population; a fast-growing economy; an enterprising start-up culture; and support from the country’s financial sector regulators who are taking proactive steps to develop the financial technology industry.
And the government in The Philippines is working hard to make financial inclusion a reality. In August, The Asian Development Bank (ADB) approved a $300 million policy-based loan to support reforms to help those in unserved and underserved areas of the country access financial services. The hope is that this loan will “promote electronic payments and make it easier for low-income earners without bank accounts to access financial services”.
In the latest move, In the latest move, in October of this year, the Philippine government started registering people into a new national identification system. The plan is for the system to begin operation in the second half of 2021 and will allow for services such as visa applications to be dealt with more swiftly and efficiently.
But what does this have to do with financial inclusion and how does this affect people wanting to send money to The Philippines?
What do the new national ID Cards mean for people sending money to The Philippines?
In short, the new ID cards — that give each person a unique number, which can be used across agencies — means that financial services, like bank accounts, are more accessible to low-income workers.
Having a bank account means someone can access digital money as well as cash. They can pay pills by setting up direct debits, and save time and often money by shopping online. More bank accounts also mean there are more options where remittances are concerned and Small World is aware of the importance of money sent home by Overseas Filipino Workers (OFW). Our customers send money to The Philippines for a wide range of reasons.
Some for investment purposes, but many to help loved ones with basic needs and medical expenses. Therefore, having easy access to the money that is sent is imperative. Bank accounts open up a whole new range of payment and savings options.
For those wanting to make an international money transfer to The Philippines, bank deposit becomes an option.
What are the benefits of bank deposit?
Currently, Small World’s cash-based services are most popular for people sending money to friends and loved ones in The Philippines. However, bank deposit is also an option.
Some reasons to choose bank deposit are:
Bank transfers are safe. When you transfer money using money transfer company that is regulated by the FDA (such as Small World) your money is made secure using the latest technology. Your recipient is guaranteed to receive their money.
Transferring digitally is easy. You can choose to send money through the Small World website or app, in just a few simple steps. Once your beneficiary is set up a transfer can be done in a matter of seconds.
The money arrives quickly. Rather than waiting for the slower cash services, and standing in line to access money, bank deposits mean your recipient can access their money for online transactions in minutes.
Socially distant. A digital transfer means you and your recipient can avoid having to rely on human-to-human interaction.
Good value. As a service tailored to people living overseas, we are constantly checking our fees and exchange rates to make sure you get the best deal. Your first transfer is always fee-free.
Ways to send money to The Philippines:
- Bank deposit
- Cash pick-up
- New cash card
- Cash card reload
- Home delivery
And remember, your first online transaction is fee-FREE.
Our main partners in The Philippines are BDO, BPI, Filremit, Metrobank, PNB, LANDBANK, EastWest