philippines immigration law
Posted in Philippines General Information on 03/07/2006 06:23 am by admin
Remittances: Looking Ahead
Philippine remittance services has changed significantly in the last 25 years. Arising from a need to send money home in a safe and reliable way but held behind the high cost of transacting through the bank, OFWs sought more economical way of sending money house.
The earliest and most common channel is the "shipment" where the money is sent by anyone coming home. It is based on trust, "please" and "association" but is not safe and fantastic. As the number of OFWs has grown over the years, The door to door cargo service provider and enterprising OFWs began pooling the money of the customers they served and transferred them in bulk for a fee at the edge foreign exchange. The operation was crude, largely underground and unregulated. The volume is large enough for the authorities and the host of banks in the country not but ignore the banks are also not ready to deal with hordes service will bring more of their offices.
New licensing regulations and collaboration formed bank and store money in the host country of the Philippines through the banks through the operating subsidiary brought Remittances in the main financial services. Remittance office created by collaboration with the host country provided banks with a significant share of the business but kept hordes off their counters.
According to Central Bank of the Philippines (BSP), Philippine remittance inflows to grown unabated reaching USD16.4B in 2008 and the rise by a further 2.7% in the first quarter of 2009 despite global financial crisis. The large number of offers big opportunities for banks, not other-bank financial intermediary and downstream transfer service provider. Rapidly changing technology and tighter regulation arising from the Anti-Money Laundering Act (AMLA) is, however, restricted entry in the remittance business of making it increasingly more competitive.
Technology now exists for seamless interconnectivity from end to end of a remittance transaction. Systems to allow file transfer capabilities of massive data to flow through safe from a bank to another. And similar facilities may be used to transfer funds from one country sending troops to an acceptable title = "Philippine delivery payment "> Philippine delivery organization. ATMs, SMS, web and phone banking also keep off hordes of the numerator of the host country and the Philippine bank. The ability to serve huge volume at low cost eventually make redundant or at least marginalize non-bank money transfer mediator. This will result in two-tier pricing, one that will serve bulk transfers and other retail transfers.
To free the banks of the problems related to the mass market, what can stay the technology providers can create and run seamless interconnectivity operating as a business process outsourcing (BPO) or service provider.
Meanwhile, there remains sufficient area for non-bank remittance service providers with the right technological infrastructure and expertise. There will always be cracks in the system arising from cultural differences, AMLA restrictions, immigration laws, non-risk and many of the local banks' inability to respond quickly changes of technology.
About the Author
Ernestine Tamayo is an OFW working in the US with wide knowledge on the money transfer Philippines industry. She is currently planning to write a book on Philippine remittance that her countrymen can read and learn from.
