These Startups are Simplifying Sending Money Back Home for Filipinos Working Overseas

Image Caption: Filipino domestic helpers load boxes with food and clothing in a street in the central district of Hong kong on November 30, 2008, to be sent back to their families in the Philippines. (Photo credit: TED ALJIBE/AFP/Getty Images)

Casey Hynes ,  CONTRIBUTOR

Remittances from overseas Filipino workers (OFWs) reached more than $26 million earlier this year, indicating that the industry is alive and well. Despite reports that the remittance business is slowing down, OFWs remain a key source of economic stability for millions of families in the Philippines. Indeed, approximately 10 million Filipinos are employed abroad. And that’s to say nothing of the workers who stay in the Philippines, taking jobs in cities so they can send money home to their families in more remote areas.

The ability to support one’s family is a driving factor in the decision to relocate for work, but getting money home can be an arduous process. Even when an OFW sends a cash transfer, there’s no guarantee the beneficiary will be able to receive it right away, according to Mikko Perez, founder and CEO of Ayannah. In places where a high number of families subsist on OFW remittances, it’s not uncommon for agents to run out of money and force receivers to return the next day. This is costly and time-consuming for people who may have to travel several hours just to pick up their money.

Then there’s the issue of how the money is spent. As the son of an OFW, Jonathan Chua knows first hand how precarious remittances can be once received. The parent might expect the cash to be spent on groceries or saved for educational purposes. But without their oversight, it’s all too easy for young family members in particular to buy luxury TVs or gamble the allowance instead.

“Money is pretty unaccountable,” Chua said. “The money they send over to their families is used for groceries or education or to pay bills, or let’s say gambling or drugs or alcohol. No one would ever know.”

And so he created BeamandGo, a platform that enables OFWs to purchase specific goods and services with their remittances. BeamandGo maintains partnerships with grocery chains, insurance companies and various service providers so that workers can ensure that their wages are enhancing their families’ well-being.

(Source: Forbes.com)