Will financial inclusion in The Philippines improve your money transfer options?
The World Bank describes financial inclusion as “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”. These should be accessible for both individuals and businesses.
So, how does this impact you, as someone who wants to transfer money to loved ones in The Philippines?
Individual access to personal bank accounts is the first step. Not only do bank accounts allow people to access cash services but they enable them to store money safely and send and receive digital payments as well.
New national ID Cards for people in The Philippines
In October of this year, the Philippine government began to register the people into a new national identification system. The system will allow services such as visa applications to be dealt with more efficiently and is thought to begin operation in the second half of 2021.
The new electronic ID system will issue cards that will give each person a unique number. These numbers can be used to identify people across agencies and mean that financial services, like bank accounts, will be more accessible to low-income workers.
Why is a bank account important?
A bank account means access to digital money as well as cash. With a bank account, someone can set up direct debits to pay and can save time and often money by shopping online.
Bank accounts also mean more options where remittances are concerned. Small World understands the importance of money sent home by Overseas Filipino Workers (OFW) and we know many of the reasons our customers send money to The Philippines.
Some send money home for investment purposes, but many do it to help loved ones with basic needs and medical expenses. Easy access to the money that is sent is therefore important and bank accounts open up a whole new range of options for payments and savings.
Bank deposit becomes a feasible option for people making an international money transfer to The Philippines, .
What are the benefits of bank deposit?Cash-based services are currently most popular for Small World’s customers who send money to friends and loved ones in The Philippines but often this is because their recipient doesn’t have access to a bank account.
Some reasons to choose bank deposit are:
- Safe. Small World is regulated by the FDA so your money is secured by the latest technology. Your recipient is guaranteed to receive their money when you transfer money with us.
- Quick. Bank deposits takes minutes. Your recipient will be able to access their money almost immediately rather than standing in line to access their money.
- Easy. Transferring money digitally can be done in just a few steps. Once your beneficiary is set up, you can choose to send money through the Small World website or app.
- Value. Your first transfer is always fee-free and, as a service made for to people living overseas, we check our fees and exchange rates constantly to make sure you are getting the best deal.
- Socially distant. Importantly for Covid times, digital transfer means avoiding in-person interaction.
Financial inclusion in The PhilippinesThe Philippines, is set to become a financial tech “world leader” and The Milken Institute identifies a number of reasons why it is of the most popular destinations for international money transfer:
- A young, tech-savvy population
- A fast-growing economy
- An enterprising start-up culture
- Support from the country’s financial sector regulators who are taking proactive steps to develop the financial technology industry
The government in The Philippines is working hard to make financial inclusion a reality. The Asian Development Bank (ADB) approved a $300 million policy-based loan in August in order to support reforms to help those in unserved and underserved areas of the country access financial services.
Hopefully, this loan will “promote electronic payments and make it easier for low-income earners without bank accounts to access financial services”. 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