Foreign currency remittances by Overseas Filipino Workers (OFWs) in 2007 amounted to $14.45 billion, higher than the $12.8 billion remittances in 2006. OFW foreign currency remittances are, no doubt, among the more important stabilizing factors of the Philippine economy. Even the Bangko Sentral ng Pilipinas or BSP recognizes the valuable contribution of the OFW remittances to the economy. For that, the Philippine government call OFWs "Bagong Bayani". 

We could discuss the contributions and impact of OFWs on the Philippine economy, but for this article, let's focus on a business that goes hand-in-hand with the increase of foreign currency remittances principally by OFWS. We shall also focus on international remittances, excluding domestic remittances.

It's called by many names, including "money remittance", "money transfer", "pera padala" or "kwarta padala". The usual mode of transfer is through the banks. For December 2007 alone, $1.396 billion was sent through banks. Remittances coursed through banks in 2006 amounted to US$12.8 billion. You'll notice that this amount corresponds to the total official figure for 2006, which means that there are other remittances through non-bank channels that remain unaccounted for. 

But even if you only consider the official figures sent through the banks and you consider only a small portion of that amount, that will still leave you with a huge potential market. The trick, therefore, is to find the most efficient and cost-efficient way of sending money. (As an aside, what do you think is the best money remittance company?)

Of course, this business requires a huge capital, something that the small entrepreneurs may not have at their disposal. But imagine if the OFWs band to form a cooperative -- they will benefit not only because they themselves are the customers, but they'll generate income from it. Whether that's feasible is still something to be seen.