Sunday, December 03, 2006

Filipinos motivation for sending money

Dr. Joaquin Gonzalez, director of Philippine Studies at the University of San Francisco, is studying the link between immigration and the spirituality of Filipino-Americans.

Gonzalez initially discovered that over half of those surveyed send at least $100 to $500 monthly to the Philippines. The study, to be presented early next year, also looks at the motivation for the act of sending money. Some of the present reasons include:
  • Supporting grandparents and parents (24%)
  • relatives' health care needs (22%)
  • housing mortgage (18%)
  • school payments of direct children and nieces or grandchildren (18%)

Money is send usually using money transfer companies (47%), bank channels (32%), and courier channels (21%).

Money remittance is one of the most lucrative business today in the country due to the increasing number of Filipinos working or migrating overseas. Comparing this to our OFW Internet Habits report, the only change is the increasing trust to money remittance companies. Banks used to be the primary medium for this purpose.

Organizations like UNCTAD also sees remittance as a development tool and urges countries, like the Philippines, largely benefiting from the inflow of currency to tap its potential other than further pushing consumption.

As most overseas Filipino workers are women, The World Economic Forum's latest Global Gender Gap Index found the Philippines to be doing more to empower women than the United States, Britain, Canada or Australia. Of 115 nations examined in 2006, the Philippines placed sixth, well ahead of the United States at 22nd (Sweden was first). Although women may be more economically empowered, it is a sad reality that Filipinas abroad are at high risk as well.

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