New Western Union research maps UAE consumer sentiment on current and future capabilities and needs
Consumers expect to send and receive more money in the next 12 months
The research also reveals that 46% of consumers have multiple channel options for cross-border money transactions in the future.
DUBAI, United Arab Emirates, December 16, 2022–(BUSINESS WIRE)–Citizens and residents of the United Arab Emirates (UAE) expect to send more money internationally in the next 12 months, according to a survey. by Western Union. Exclusive forecasts show that 76% of customers sending money and 75% of customers receiving money, respectively, expect to transfer and collect more money in the next year.
The survey, which surveyed more than 1,000 UAE nationals and residents who send and receive cross-border money transfers, explores consumers’ feelings about how, when and why they transfer money. . The results confirm Western Union’s ‘Evolve 2025’ (E25) recently announced strategy of combining financial services with affordable and accessible retail.
Family support is cited by 60% of senders as the primary reason for transferring money overseas. Savings for the future comes in a distant second, ranking 11% of the senders. A well-known cultural melting pot, the UAE is home to more than 200 nationalities and is one of the most competitive countries for talent. Some of the wider community is from the world’s most developed economies.
Family care in the country was again emphasized as one of the main reasons for the number and volume of migration abroad. In addition, as the rising cost of living and global currency fluctuations put additional pressure on personal finances, 74% say that due to the higher cost of living in the countries they send to, they need to transfer more money. Seventy-one percent say they take the opportunity to send more money when the value of the currency in the receiving country decreases.
“Remittance is often a very personal decision. Western Union data also supports that one of the most common reasons why customers remit is to support loved ones and family,” said Jean Claude Farah, President of the Middle East and Asia Pacific at Western Union. “So it’s only natural that as the global economic climate challenges affordable lifestyles, family support takes priority over everything else when remittances are being made. “
“Continuously attracting such diverse countries is a true testament to the UAE’s efforts to position itself as a global partner, and an attractive and influential economic center,” he said. Farah added. “We believe that these ongoing efforts also mean that the UAE will continue to ride the lead as one of the world’s largest remitters. This also makes us more entrepreneurial. to connect people with opportunity; Union has been doing this for customers in the UAE for nearly 25 years and is deeply committed to the country. As we evolve and grow in the coming years, remains committed to driving an environment that drives financial inclusion and creates a sustainable path. economic success across communities in the country.”
Culture and family ties affect the movement and flow of money
Sending money shortly after payday regardless of broader economic conditions (34%), or family needs back home (32%) are the two most popular cash flow and the frequency. However, Western Union’s survey also shows a third factor: almost a quarter (21%) of consumers say they focus on sending money during holidays such as Ramadan, Christmas, New Years and Diwali, as well as other special occasions, such as birthdays. , graduations and anniversaries.
In an interesting reversal of this trend, 37% of UAE consumers who receive money transfers also say that frequency and amount are most strongly influenced by holidays and other special occasions. , higher than the needs of the family (27%) or the time of the sender’s salary (18%).
“We know that different populations have different needs. The festive season and special occasions are good examples, so every year we see an increase of about 6% in the amount of the flow of money as these times approach,” Farah said. “Western Union offers a broad combination of digital and retail channels to meet the needs of millions of customers worldwide. We believe that the trust we enjoy with customers in the UAE and around the world puts us in a unique position to help millions of people. People bring the best to society.”
A tech-savvy population is looking for options for the future
As they consider how consumers want to send and receive money in the future, they value choice. A study by Western Union shows that 42% currently send money across borders using digital channels. However, if they look to the future, 46% want to choose how to send their money, either in cash or digitally.
There is a similar feeling among the receivers. Forty-three percent currently earn money through digital channels only. In the future, 57% want to be able to choose between digital and retail channels when collecting their money.
Those who do not use digital channels, say the top barrier preventing them from sending or receiving money online is their preference for direct communication, followed by trust. Process or customer experience is another frequently cited barrier.
Farah concluded: “Research findings show that while most consumers can be considered digital first, many want to choose between digital and marketing options, based on opportunities and needs. However, being able to trust online services is critical, and as an industry, we have a job to do to help customers overcome their concerns. Ultimately, our ultimate goal is to will continue to ensure that we can better support the financial needs of people, wherever they are geographically, culturally or economically.”
About Western Union
The Western Union Company (NYSE: WU) is a global leader in cross-border travel and payments. The Western Union platform provides seamless cross-border flows and a global financial network connecting more than 200 countries and territories and approximately 130 currencies. We connect consumers, businesses, financial institutions and governments through one of the world’s largest networks, accessing billions of bank accounts, wallets and cards millions of digital and global network of points of sale. Western Union connects the world to bring limitless opportunities within reach. For more information, visit www.westernunion.com.
About Western Union’s research study
The research was commissioned by Western Union for Censuswide. The census surveyed 1,003 consumers aged 18 and over – who send or receive international money transfers in the United Arab Emirates. The research was conducted between October 31, 2022 and November 8, 2022. The census follows and uses members of the Market Research Society, which is based on the principles of ESOMAR.
See the source version at businesswire.com: https://www.businesswire.com/news/home/20221216005152/en/