Study: Almost 60% of Saudi Arabia Consumers Choose Only Digital Money-Transfer Platforms, but Choice Still Matters
December 21 2022 - 6:46AM
Business Wire
- 47% of consumers who send money transfers believe that
digital is the future for cross-border money movement, but many
still want choice between online and in-person experiences
- Consumers expect to send or receive more money in the next
12 months, as senders struggle with cost-of-living
dichotomy
- Women prioritize why they send cross-border money transfers
differently to men
Consumers in Saudi Arabia predominantly view digital money
transfers as the preferred way to send money now and in the future,
according to research commissioned by Western Union. Yet many still
want the power to choose between online and retail (in-person)
experiences - depending on their convenience and needs. Exclusive
insights show that today almost 60% of consumers who send money
abroad prefer digital money-transfer services, compared to 22% who
want choice, and 17% who send cash through retail channels
only.
The study, which surveyed over 1,500 money-sending and receiving
citizens and residents of Saudi Arabia, asked how, when and why
they move money internationally. The results bolster Western
Union’s recently announced ‘Evolve 2025’ (E25) strategy combining
high-value, accessible digital and retail financial services. The
research also aligns to Western Union data, which has demonstrated
strong customer preferences to move money digitally. In the first
three quarters of 2022, the Company experienced double-digit
year-on-year growth in the volume of digital transactions from
Saudi Arabia.
When asked about how international money transfers should be
offered in the future, consumer opinion among senders is mixed.
More (47%) still believe that the transfer experience should be
digital from end-to-end, while 44% prefer choice and 9% would still
opt for cash only. In reverse, 57% of consumers who receive
transfers prefer a choice, while 24% favour going completely
digital. Nineteen percent would still want to collect their funds
in cash only.
“Since launching their ambitious National Transformation Program
– Vision 2030, Saudi Arabia has made significant strides in
achieving digital transformation,” said Jean Claude Farah,
President of Middle East and Asia Pacific at Western Union. “The
country’s visionary leaders have been steadfast in developing the
necessary infrastructure to support this evolution. As a result,
today it ranks seventh for its digital competitiveness among the
G20, while internet penetration across the country sits at an
impressive 98%. The study outcomes demonstrate that citizens and
residents have been very much part of this journey – largely opting
for online options over in-person experiences, as they benefit from
the country’s increasingly advanced digital framework.”
Receivers hold strong influence over
frequency and flow of money
The research also shows that receivers of funds strongly
influence how much and how often their senders transfer money.
Overall, 34% of senders say their families or loved ones’ financial
situation drives decisions on the frequency and flow of money.
Sixty eight percent also say their receiver influences the company
they choose to send money through, and 74% state their transfer
method of choice (digital, retail or a mix) is dependent on how
their receiver can collect the money.
Looking at the broader macro-economic climate, a significant
number of consumers expect to send (74%) or receive (66%) more
money in the next 12 months. However, senders also struggle with a
cost-of-living dichotomy: 73% of senders say that because
cost-of-living has increased in their receiving country, they now
need to send more money; yet 67% state that higher cost-of-living
in their current country of residence, means they are not able to
transfer as much as they did previously.
“Providing a crucial link between senders and receivers helps
consumers build a bridge to financial stability and opportunity,”
Farah said. “As we adapt to higher costs-of-living, supporting
consumers as they move up the economic ladder becomes even more
important. The public and private sectors have a collective role to
play here. If we collaborate effectively, we will be able to offer
even stronger financial opportunities and experiences that will
ultimately help them better manage their financial lives.”
Women prioritize why they send
cross-border money transfers differently to men
The study also shows that a greater number of women in Saudi
Arabia send money transfers more often than once a month, compared
to men. Nearly a quarter of the women surveyed (vs. 21% of men) say
they move money multiple times within a month.
Paying for family support is the primary reason why men move
money (55%). While this is of utmost importance to many women as
well (42%), women also place stronger emphasis on reasons such as
paying for financial commitments, future savings and education
payments.
“Globally, women comprise slightly less than half of today’s
expatriate workers,” Farah concluded. “They are more empowered than
ever before, as they move internationally and shape global
economies. In line with Vision 2030, Saudi Arabia is focused on
attracting the finest local and international minds to bolster
economic development. Their ambition to increase women’s
participation in the workforce to 30% by 2030 means that ensuring
greater access to financial services is imperative, particularly
with the rise of new technologies.”
About Western Union
The Western Union Company (NYSE: WU) is a global leader in
cross-border, cross-currency money movement and payments. Western
Union’s platform provides seamless cross-border flows and its
leading global financial network bridges more than 200 countries
and territories and approximately 130 currencies. We connect
consumers, businesses, financial institutions and governments
through one of the world’s widest-reaching networks, accessing
billions of bank accounts, millions of digital wallets and cards
and a substantial global network of retail locations. Western Union
connects the world to bring boundless possibilities within reach.
For more information, visit www.westernunion.com.
About Western Union’s research study
The research was commissioned by Western Union to Censuswide.
Censuswide surveyed 1501 consumers aged 18 and above - who send or
receive international money transfers in Saudi Arabia. The research
was conducted between 31 October 2022 and 8 November 2022.
Censuswide abide by and employ members of the Market Research
Society, which is based on the ESOMAR principles.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221221005242/en/
Western Union Saadia McGlinchey; Saadia.McGlinchey@wu.com
Karen Santos; Karen.Santos2@westernunion.com
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