Filipinos are some of the most resilient and versatile people in the world, so much so that 2.3 million of them are currently working overseas to create a bright future for themselves and the families they had to leave behind. This may seem unfortunate for many families, but it’s great for the economy. In fact, in 2018 the country is the third highest recipient of remittances, according to a World Bank report.
Money sent home by Filipinos abroad hit an all-time high during last year’s holiday season. Cash remittances grew 3.9 percent year-on-year in December to reach a record US$2.8 billion. For the entire year, cash remittances notched a 3.1 percent growth to US$28.9 billion, just a little higher than the target set by the BSP for 2018. While remittances play a key role in developing economies, sending money overseas faces a few challenges.
Issues with Traditional Remittance
There’s no denying the fact that our existing remittance system is flawed. It has a few issues that need to be resolved such as too many unwanted middlemen, cross-border transfer risks, and unreasonably high fees, among others. There needs to be a more streamlined system.
When transferring funds to another country, you’ll need to apply for a bank account or various payment services such as Western Union and MoneyGram among others. The problem is the process involved here takes too long and can be costly since the money has to go through several stages before the recipient finally gets a hold of the cash.
Risk of losing money during transfers
The current system is vulnerable, so there is a high risk of losing money somewhere while in transit. This may be due to security threats or simply because there are too many steps your money has to go through before reaching the intended recipient.
High transaction fees
Due to intermediaries or brokers, you spend on high remittance fees and commissions to complete your transactions, which lessens the amount of money you’ll be sending to your family.
Save on Remittance Fees with Noah Coin
Instead of being able to remit more money to family back home, high remittance fees are taking a chunk out of what overseas workers could send. A World Bank study has revealed that remittance fees can cost an average of 6.94 percent of the amount sent.
According to the same study, banks are the most expensive method for doing overseas money transfers, with an average cost of 10.9 percent of the amount sent. The cheapest alternative is Mobile Money, which charges a commission fee of 4.55 percent — relatively lower than banks, but still a significant chunk. Aside from that is the fact that not all the money being transferred reaches its destination. According to analysts, over US$32 million fail to reach their recipients.
Fortunately, technology is here to save the day, and Noah Coin can help cut remittance costs with its blockchain-based fintech services infrastructure under the Noah Project. This aims to solve a number of the problems present in traditional remittances, which can help Filipinos send more money to their families through its web-based application for remittance transfers.
The company has created Noah Coins that serve as digital tokens in the project’s ecosystem. Users will be able to send money to their families through fast, cheap and easy remits. The product can cut the cost of money transfers down to 2-3 percent — three times lower than traditional banks.
Thanks to its decentralized nature, remittances don’t require third parties to mediate the transfers so that they can be processed quick and easy—within just a few minutes. Not only that, virtual money payments and transfers are also transparent, making it a reliable channel. The result is both sender and recipient will be able to track the money flow and know if the funds have reached its destination.
Overseas Filipino workers can purchase Noah Coins and use these tokens as a means to remit funds to their families across borders rapidly and without paying high fees. You can do this through Noah Project’s convenient and secure wallet, which can also be used to shop online through PayRemit.
Take Advantage of Safer, Quicker and Faster Remittance
The Noah Project aims to use cryptocurrency and the technology that comes with it to help citizens in developing nations who are working abroad. They can be instrumental in facilitating faster economic growth for their country using the foreign currency they send to their families. The key here is to be up-to-date and be informed to make better decisions in trading your coins.
You won’t have to worry if the money you’re sending is going to be lost or stolen due to blockchain technology preventing any theft or loss of funds during the transaction. The Noah Project will rectify any problems arising from the traditional remittance system through its blockchain-based financial technology services infrastructure that any Filipino can access through a mobile app. With over 38 million smartphone users in the country, it’s a fantastic alternative to make sure your money is safely remitted to your family in full.
Download the Noah App today to find out how much you can save on your remittance costs!