Riadske newspaper | 60% of consumers send money abroad by digital transfer

The traditional bank conversion culture is shrinking

A survey by the global remittance bank found that the majority of its customers in the Kingdom of Saudi Arabia consider digital money transfers to be the preferred method of sending money, now and in the future. On the other hand, many of them still want to be able to choose between electronic judgment and personal money transfer at authorized centers, according to their needs. Exclusive data shows that almost 60% of consumers sending money abroad prefer digital money transfer services, while 22% want to have a choice and 17% prefer to send money only through retail centres.

The study, which included more than 1,500 citizens and residents of the Kingdom of Saudi Arabia who send and receive money, examined the reasons, how and when to transfer money abroad.

The difference in opinion emerged when consumers were asked about the form of international money transfer they want in the future. Many of them (47%) still believe that the streaming experience should be completely digital, while 44% prefer to provide both digital and in-person streaming options, and 9% still choose streaming. Funds are cash only. In contrast, 57% of consumers who receive remittances would prefer to have a choice, while 24% would prefer a fully digital transfer and 19% would still like to receive cash only.

In this context, Jean-Claude Farah, research-based head of the Middle East and Asia-Pacific region at Western Union, said: “Since Saudi Arabia launched its ambitious National Transformation Program – Vision 2030, the Kingdom has made great strides in in the field of digital transformation. Wise leadership was delighted the Kingdom has developed the necessary infrastructure to support this development, and the Kingdom ranks seventh in terms of digital competitiveness among G20 countries, with an internet penetration rate of 98%. The results of the study show that citizens and residents made up an important part of this march, as they prefer digital options. Instead of personal experiences, they benefit from the advanced digital framework in the Kingdom.

Customers who receive remittances greatly influence the frequency of remittances and the flow of funds.

The research also showed that the recipients of remittances greatly influence the frequency of their movement, as 34% of money senders stated that the financial situation of their family or relatives determines the frequency and flow of money transfers. Also, 68% said that recipients of transfers influence the choice of company through which senders transfer money, and 74% said that the transfer method they choose (digital channels, retail centers or both) is related to how the recipient receives the money. .

Looking at the broader economic climate, more consumers (74%) expect to send or receive (66%) more money in the next 12 months. And 73% of study participants said they were forced to transfer more money because of the high cost of living in their country. Also, 67% said that the high cost of living in their current country prevents them from transferring money as much as they used to.

Farah continued, “Providing a basic connection between sender and receiver helps consumers achieve financial stability and take advantage of opportunities. Through our effective collaboration, we will provide them with better financial opportunities and expertise to help them improve the management of their financial conditions.”

The study also found that more women in Saudi Arabia send money more than once a month than men, with nearly a quarter of women surveyed (versus 21% of men) saying they send money several times a month.

Family support is the main reason for men’s remittances (55%), and although this is extremely important for many women (42%), they also focus on reasons such as paying financial obligations, future savings and school fees.

Farah concluded: “Globally, women make up just under half of the expatriate workforce, and are empowered more than ever before as they move abroad and contribute to shaping global economies. In line with Vision 2030, the Kingdom of Saudi Arabia is focused on attracting the best local and international talent to drive economic development and aims to increase the participation of women in the workforce to 30% by 2030, which is crucial to ensure wider access to financial services, especially with the emergence of new technologies.”