- Inaugural Global Money Transfer Index surveys 30,600
consumers in 20 countries across the Middle East, Africa and Asia
Pacific
- Index voices consumers’ international money transfer
preferences for today and tomorrow as they navigate global
headwinds
As global populations navigate macroeconomic headwinds,
consumers expect remittances to play an even stronger role in their
current and future financial planning. According to Western Union’s
inaugural Global Money Transfer Index launched today, 64% of money
transfer consumers send and/or receive money once a month or more.
Over the next 12 months, 75% expect these remittances to
increase.
The Global Money Transfer Index asks consumers how, when and why
they use international money transfer capabilities today, as well
as their expectations for tomorrow. Surveying 30,600 consumers in
20 countries across the Middle East, Africa and Asia Pacific, it is
the largest consumer research published by a money transfer
operator. The results bolster Western Union’s ‘Evolve 25’ strategy
to combine high-value, accessible retail and digital financial
services for all.
The Index shows that economic challenges such as higher global
cost of living mean 79% of receiving consumers must ask for more
money. For the same reason, 71% 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. Supporting business
interests at home and saving for the future are cited by consumers
as critical reasons too.
"We all felt a strong sense of relief as global economies went
into post-pandemic recovery,” said Jean Claude Farah, President of
Middle East and Asia Pacific at Western Union. “However,
macroeconomic conditions have since made the daily lives of people
more challenging. Remittances are typically resilient because of
their purpose. This makes it even more incumbent on money transfer
providers to stay agile, supporting consumers on their journey.
That is why today we have launched the Global Money Transfer Index
– to share the voice of the consumer, how they view money movement
today and, come tomorrow, what they will need.”
Maximizing opportunity during times of instability
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% send more money when the
currency value falls in their receiving country. Sixty-seven
percent of receivers agree that when currency values fall, they
receive more money.
Currency fluctuations are front-of-mind for consumers. When
asked about the future, 79% want money transfer brands to offer an
additional service notifying them when relevant currency values
begin to shift so they can plan transfers accordingly. Achieving
better service and greater value also reflects in how consumers
determine which money transfer brands to use. Criteria such as
achieving the best exchange rate, ensuring lowest or no charges
paid by receivers and speed of transfers sit in the top three.
Digital today, choice tomorrow.
Industry research shows that there are over five billion
internet users in the world today, growing at an annual rate of
1.9%. This growth rate is even higher in developing economies.1 In
sync with this, the Index highlights that over half of consumers
(56%) want to use digital-only solutions for their money movement
needs.
However, three billion people remain unconnected, so there is
much more to do to achieve true digital equity. Of those who choose
not to use digital transfer services at all, trust and customer
experience are identified as top barriers—along with a preference
to seek face-to-face interaction - among both senders and
receivers.
When consumers look to the future, however, the picture changes.
A much greater proportion (52%) want a choice in platforms when
transferring or collecting. Bridging the digital with in-person
experiences will significantly broaden the consumer financial
ecosystem.
“Combining digital and physical experiences is the power behind
Western Union’s strategy,” says Mohamed Touhami El Ouazzani, Head
of Africa at Western Union. “If we want to maximise financial
inclusion, we must offer consumers diverse options when moving
money. This is vital if we want to create long-lasting
relationships with consumers and make meaningful impact in
communities.”
Innovation sits high on consumers' agenda.
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.
Senders and receivers are frustrated with repetitive and
time-consuming paperwork (72%). In fact, 79% would prefer facial
recognition/biometric technology for instant and reliable
registration. Receivers also want their funds to be disbursed on a
prepaid card or e-wallet that does not require a bank account
(76%), as well as the option of receiving in different currencies
(83%). Eighty-one percent are eager for integrated ‘super’ apps,
allowing them to manage remittances alongside other financial
products with ease.
“The progress of innovations within financial services has been
astonishing,” Farah says. “Whether in countries such as the
Philippines, Australia, the UAE, Singapore or Saudi Arabia, central
bank investments have created a vast array of safe and reliable
choices for consumers. 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.”
About Western Union
The Western Union Company (NYSE: WU) is committed to helping
people around the world who aspire to build financial futures for
themselves, their loved ones and their communities. Our leading
cross-border, cross-currency money movement, payments and digital
financial services empower consumers, businesses, financial
institutions and governments—across more than 200 countries and
territories and nearly 130 currencies—to connect with billions of
bank accounts, millions of digital wallets and cards, and a global
footprint of hundreds of thousands of retail locations. Our goal is
to offer accessible financial services that help people and
communities prosper. For more information, visit
www.westernunion.com.
About Western Union’s Global Money Transfer Index
The Western Union Global Money Transfer Index is based on a
survey study of 30,599 consumers aged 18+ who send and/or receive
international money transfers. ‘Send’ and ‘receive’ consumers were
sampled from the United Arab Emirates, Kingdom of Saudi Arabia,
India, Australia, Singapore, Philippines, South Africa, Bangladesh,
Nigeria, Morocco, Kenya, Egypt, Qatar, Kuwait, Pakistan, Indonesia,
Malaysia, China, Vietnam and Senegal. The study was conducted
between 31 October 2022 and 10 January 2023. Western Union
commissioned the study to Censuswide, an independent research
consultancy who abide by and employ members of the Market Research
Society - which is based on the ESOMAR principles. Click here to
download the report in full.
1
https://datareportal.com/global-digital-overview#:~:text=There%20are%205.16%20billion%20internet,during%20the%20past%2012%20months.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230322005468/en/
Media contacts: Saadia McGlinchey;
Saadia.McGlinchey@wu.com Karen Santos;
Karen.Santos2@westernunion.com
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