Western Union’s inaugural Global Money Transfer Index reveals 64 per cent of money transfer consumers send and/or receive money once a month or more, while 75 per cent expect these remittances to increase, over the next 12 months.
According to a statement, consumers expect remittances to play an even stronger role in their current and future financial planning, as global populations navigate macroeconomic headwinds.
The Index shows that economic challenges such as higher global cost of living mean 79 per cent of receiving consumers must ask for more money. For the same reason, 71 per cent of senders agree they are transferring more than previously.
This may contribute to why consumers state frequency and volume of remittances are primarily influenced by family requirements, despite common perception that remittances are driven by when salaries are received.
While family support is identified as the main purpose for remitting, consumers say transfers also play a strong role in future financial planning. Paying for education costs ranks second highest as a reason consumers remit money.
Together with cost-of-living, consumers demonstrate that they keep a sharp eye on how their local currency performs back home. In a bid to maximise on opportunity, 68 per cent send more money when the currency value falls in their receiving country.
Consumer preferences will continue to spur innovation within the financial services industry. When asked how they would like remittances to evolve, the focus is on advances that will enable even greater convenience, better planning and inclusivity.
“The progress of innovations within financial services has been astonishing. We all have a role to play in ensuring consumers are able to look after themselves, their families and their future with confidence and ease.
“By sharing what we have learnt in the Global Money Transfer Index and working in continuous collaboration with the financial services industry, we believe we can meet and serve people wherever they need us to be,” said its President of the Middle East and Asia Pacific, Jean Claude Farah.
Surveying 30,600 consumers in 20 countries across the Middle East, Africa and Asia Pacific, the Index asks consumers how, when and why they use international money transfer capabilities today, as well as their expectations for tomorrow.
The results bolster Western Union’s ‘Evolve 25’ strategy to combine high-value, accessible retail and digital financial services for all.