Many overseas Filipino workers have flown far from their home in search of opportunity in recent times, in order to support family at home in the Phillipines. As a result, the amount of Pinoy Remittance being sent has grown astronomically, making up 5-10% of GDP in the last few years alone. The Internet has made sending money to the Philippines easier than ever, and with this comes the development of remittance culture to compliment pre-existing businesses.
An Influx of Pinoy Remittance
The Philippine economy has benefited from healthy growth as a result of remittance, reaching a total inflow of around 28 billion in early 2014 (approximately 10% of overall GDP). This stimulates the domestic economy and allows it to grow through increased spending.
Remittances enter the country through the banking system, smaller wire transfer businesses, and even through physical carriage – the majority of which comes from the US.
Doing Business in the Philippines
Conducting business in another country requires different etiquette. In the Philippines, it is traditional that business dealings be dealt with face-to-face. Many Pinoy business dealings begin with talk of mutual friends and family, rather than the topic of the meeting. Business cards are standard procedure, and are exchanged in a manner less formal than in Western cultures.
Many firms, including the Philippines Government, normally have similar office hours to Western countries (8am to 5pm). Having said this, most banks operate from 9am to 3pm. Business is best done mid-morning or in the late afternoon.
Banking in the Philippines
Banks in the Philippines are separated into categories:
Rural and Co-operative Banks:
Promote smaller dealings in rural communities by providing basic financial services. Generally these banks are relatively small in size.
Have the power to accept savings and time deposits, give mortgages, and extend credit. Generally these are smaller banks than Universal and Commercial Banks and are targeted towards investing deposits from small savers.
Universal and Commercial Banks:
Have the same powers as a thrift bank, but have more services available, such as being able to deal in foreign exchange, sell securities, and sell gold and silver bullion. Universal banks can be government owned, while commercial banks are not, and can invest in non-allied enterprises.
Generally, the Philippines’ Banking hierarchy is a little more complex than New Zealand’s, however both countries are tied together by a centralized bank – Bangko Sentral ng Pilipinas, (the central bank of the Philippines) and the Reserve Bank of New Zealand.
OrbitRemit offers lower fees to let you send more money home and ensure greater benefits to the developing Philippines economy. We’ll tell you exactly how much it will cost upfront and how much money will be arriving at its destination. The calculator on the right hand side of the screen is the place to start!