Global remittance market: 2012 Edition- Koncept Analytics

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Remittances are an important source of income for households, particularly in developing countries. Remittances are gaining importance in the economic planning of all major developing economies of the world. With globalization and growing socio-political activities, more and more people from underdeveloped or developing economies are working outside the countries of their origin. Remittances are being considered as an important financial resource for development as well as a social change by financial planners in developing economies. The worldwide inflow and outflow of remittances is rising constantly since past several years with the exception of 2009, which was characterized by global economic slowdown.
The developing nations which include both low-income and middle income countries account for the majority of the global remittance inflow with majority contribution from India, China, Mexico and Philippines, due to their large emigrant population. The largest source of remittance flow to developing regions is high income countries including the US and Western Europe, with the GCC countries fast developing as an important source.
The key trends observed within the market include exchange rate, fluctuating remittance cost, regional employment or unemployment affecting remittances, number of RSPs and cost variation across India and China and dominance of cash prices over the remittance market. The global remittance market faces several challenges which include the taxes which are imposed by the government on remittances and numerous legal and regulatory hurdles. The major factors which will contribute in the growth of the industry include growing international migration, rising employment rate and global economic growth.
The report analyzes the global remittances market with focus on India, China, Mexico and Philippines. The companies operating in the global remittance market face strong competition with few large competitors and numerous small and niche competitors. The leading money transfer organization like Western Union, Money Gram, Euronet are profiled in this report.

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Global remittance market: 2012 Edition- Koncept Analytics

  1. 1. View Report Details Global Money Transfers (Remittances) Market-------------------------------------------------------------------- 2012
  2. 2. View Report DetailsExecutive SummaryRemittances are an important source of income for households, particularly in developing countries. Remittances are gaining importancein the economic planning of all major developing economies of the world. With globalization and growing socio-political activities, more andmore people from underdeveloped or developing economies are working outside the countries of their origin. Remittances are beingconsidered as an important financial resource for development as well as a social change by financial planners in developing economies.The worldwide inflow and outflow of remittances is rising constantly since past several years with the exception of 2009, which wascharacterized by global economic slowdown.The developing nations which include both low-income and middle income countries account for the majority of the global remittanceinflow with majority contribution from India, China, Mexico and Philippines, due to their large emigrant population. The largest source ofremittance flow to developing regions is high income countries including the US and Western Europe, with the GCC countries fastdeveloping as an important source.The companies operating in the global remittance market are faced with strong competition with few large competitors and numerous smalland niche competitors. The leading money transfer organization like Western Union, Money Gram, Euronet, and other independentplayers compete on the basis of technology, price and quality of service offered to remitters.The report analyzes the global remittances market with focus on India, China, Mexico and Philippines. The key trends observed within themarket include exchange rate, fluctuating remittance cost, regional employment or unemployment affecting remittances, number of RSPsand cost variation across India and China and dominance of cash prices over the remittance market. The global remittance market facesseveral challenges which include the taxes which are imposed by the government on remittances and numerous legal and regulatoryhurdles. The major factors which will contribute in the growth of the industry include growing international migration, rising employmentrate and global economic growth.By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of theindustry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Baseto determine the future direction of the industry. Before deploying the regression model, the relationship between several independent orpredictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
  3. 3. Remittance is a transfer of money by a foreign migrant worker to his or her families in home country. Global Remittance Inflow (2007-2011) In 2011, the global remittance inflow increased to US$..... billion in 2011 in comparison with US$..... billion in 2010, showing a growth of approximately ….%. This increase was mainly due to improvement in employment and incomes of migrants drawn by booming economies in the OECD and non-OECD high income countries, a shift from informal toUS$ Billion formal channels, and better recording of flows. The global remittance outflow recorded an increase of approximately …..% from US$..... billion in 2010 to US$…. billion in 2011. •Industry Developments and trends: 2007 2008 2009 2010 2011 -Regional employment/unemployment affecting remittances -Exchange rate - Fluctuating remittance cost Global Remittance Inflow (2007-2011) - Number of RSPs and cost variation across India and China - Cash services dominate the Remittance market Market Growth Drivers -Global Economic Growth -Growing International Migration US$ Billion -Rising employment rate 2007 2008 2009 2010 2011
  4. 4. Developing countries are the main source of emigrants and represent the largest share of remittance inflows globally. Top 10 Addressers of Remittances (2011) As of 2011, the US accounted for the highest outflow of remittances with nearly US$.... billion. Switzerland was the second largest remittance sending country accounting for US$..... billion, followed by Saudi Arabia and the Russian Federation.US$ Billion  Due to the large emigrant population in developing countries, global remittance flows to developing countries are likely to grow from US$..... billion in 2009 to US$..... billion in 2012 with an estimated CAGR of …..% for the cited period.  The largest developing market in 2012 is expected to be East Asia Republic Arabia Germany Federation Italy Kuwait France Spain USA Switzerland Saudi and the Pacific region since remittance flows to this region is estimated Korea, Russian to increase by approximately ….% rising from US$.... billion in 2011 to US$......billion in 2012. Remittance Flow to East Asia and Pacific Region (2009-2012E) Remittance Flow to Developing Countries (2009-2012) ) US$ Billion US$ Billion 2009 2010 2011 2012E 2009 2010 2011 2012
  5. 5. The Global Remittance Market is highly fragmented and companies face intense competition. In 2011, the market leader in terms of revenue was Western Union Global Remittance Inflow Forecasts (2009-2014F) US$ Billion 2009 2010 2011 2012F 2013F 2014F The four largest remittance receiving countries in the world, India, China, Mexico, and the Philippines, accounted for approximately ….% of the top 10 recipients of migrant remittances in 2012. On the competition front, Western Union is the leading company in the market for remittance market world over, with approximately ……% of the market share for the year 2011, followed by MoneyGram with ……% and ….. with …..%.  The global money transfers (Remittance) market is likely to grow from US$......... billion in 2009 to US$........... billion in 2014, at a CAGR of ……….%. Key Issues faced by the respective industry include: Stringent Legal and Regulatory Requirements, Difficulty in Establishing Network of Access Points and Tax Imposition on RemittancesNote: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa
  6. 6. Table of Contents List of Graphs & Tables1. Remittances: An Overview List of Charts1.1 Definition1.2 Remittance Marketplace Basic Account-based Model Basic Non-account Based Model1.2.1 Components of Remittance Marketplace Value Chain: Remittance Industry1.2.2. Recruitment Market Value Chain Global Remittance Inflow (2007-2011) Global Remittance Outflow (2007-2011)2. Global Remittance Market Top 10 Addressers of Remittances (2011) Remittance Flow to Low Income Countries (2009-2012)-Remittance Inflow Growth Remittance Flow to Middle Income Countries (2009-2012) Remittance Flow to High Income Countries (2009-2012)-Remittance Outflow Growth Remittance Flow to Developing Countries (2009-2012) Remittance Flow to East Asia and Pacific Region (2009-2012)2.1. Remittance Market by Income Characteristics Remittance Flow to Europe and Central Asia Region (2009-2012) Remittance Outflows from Western Europe2.1.1 Low Income Countries Remittance Inflows to Eastern Europe2.1.2 Middle Income Countries Prices Driving Remittances to Central Asia (Q307-Q312)2.1.3 High Income Countries Remittance Flow to Latin America and Caribbean Region (2009-2012) Remittance Flow to Middle East and Africa Region (2009-2012)2.2 Remittances Market by Region Remittance Flow to South Asia Region (2009-2012) Remittance Flow to Sub Saharan Africa (2009-2012)2.2.1 Developing Countries Top 10 Recipients of Migrant Remittances (2012)2.2.2 East Asia and Pacific Region Top 10 Recipients of Migrant Remittances as % of GDP (2011)2.2.3 Europe and Central Asia Region Remittance Flows to India (2001-2011)2.2.4 Latin America and Caribbean Region Private Transfers to India (Q110-Q112)2.2.5 Middle East and North Africa Region Remittance Flows to China (2001-2012)2.2.6 South Asia Region Remittance Flows to Philippines (2001-2012)2.2.7 Sub Saharan Africa Remittance Flow to Mexico (2001-2012) Distribution of Remittances by Channel (2001-2011)2.3 Remittances Market by Largest Receiving Countries Change in Employment Rate from Q109 to Q411 Migrant and Natives’ Employment in the US (Mar-09 to Sep-12) The US Migrant Employment by Sector (Jan-Sept 2009 to Jan-Sept2.3.1 India 2012)2.3.2 China2.3.3 Philippines2.3.4 Mexico3. Market Dynamics
  7. 7. 3.1 Key Trends and Developments Remittance Cost for Top 20 Largest Bilateral Remittance Corridors (Q109-Q312)3.1.1 Regional Employment/Unemployment Affecting Remittances Remittance for Selected Source Countries (Q312)3.1.2 Fluctuating Remittance Cost Exchange Rate of Indian Rupee against US$ (Q110-Q312)3.1.3 Exchange Rate Exchange Rate of Mexican Peso against US$ (Q110-Q312)3.1.4 Number of RSPs and Cost Variation across India and China Exchange Rate of Philippine Peso against US$ (Q110-Q312)3.1.5 Cash Services Dominate Remittance Market Number of RSPs in Common Sending Countries (November 2012) Average Cost by Product Type (November 2012)3.2 Growth Drivers Global GDP Growth (2001-2011) International Migrants Population (2000-2010)3.2.1 Global Economic Growth Global Employment Rates (2002-2011)3.3.2 Growing International Migration Money Transfer - Organization Share by Revenue (2011)3.3.3 Rising Employment Rates No. of Agent Locations of Major Money Transfer Organizations (2011)3.3 Challenges Western Union’s Revenue Share by Business Segments (2011) Western Union’s Money Transfer Revenues (2007-2011)3.3.1 Stringent Legal and Regulatory Requirements MoneyGram’s Revenue Share by Business Segments (2011)3.3.2 Difficulty in Establishing Network of Access Points MoneyGram: Agent Locations (2011)3.2.3 Tax Imposition on Remittances Money Gram’s Money Transfer Revenues (2007-2011) Euronet’s Revenue Share by Business Segments (2011)4. Competitive Landscape Euronet’s Money Transfer Revenues (2007-2011) Global Remittance Inflow Forecasts (2009-2014F)Competitive OverviewMarket Share List of Tables5. Company Profiles Change in Mexico’s Remittance Receipts (2007-2012) Dependent & Independent Variables (2001-2011)5.1 The Western Union Company Correlation Matrix Model Summary – Coefficient of Determination5.1.1 Business Overview Regression Coefficients Output5.1.2 Financial Overview5.1.3 Business Strategies-Focus on Marketing Initiatives-Expansion through Strategic Acquisitions5.2 MoneyGram International, Inc.5.2.1 Business Overview5.2.2 Financial Overview
  8. 8. 5.2.3 Business Strategies-Expansion through Strategic Alliances-Growth through Geographic Expansion5.3 Euronet Worldwide, Inc.5.3.1 Business Overview5.3.2 Financial Overview5.3.3 Business Strategies-Focus on Money Transfer Segment-Expansion through Acquisitions6. Market Outlook6.1 Market Forecast6.2 Forecast Methodology6.2.1 Dependent and Independent Variables6.2.2 Correlation Analysis6.2.3 Regression Analysis
  9. 9. Contact Us: View Report DetailsThese are abridged and sanitized sample pages from the comprehensive report on the “Global Money Transfer (Remittances)Market”. To know more about this report or for any customized research requirement, please contact the following: Koncept Analytics CS-36, Second Floor, Ansal Plaza Vaishali, Ghaziabad, U.P. – 201010 Vikas Gupta T. +91-120-4130959 BD Manager C: +91-9811715635 vikas@konceptanalytics.com www.konceptanalytics.com

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