For this year, of the .5 billion expected remittances, the Bangko Sentral ng Pilipinas said that more than 85 percent or about .80 billion would be coursed through the formal banking channels.

For the first quarter of the year total OFW fund transfers have reached .09 billion, of which .81 billion were transacted using bank channels.

From billion last year, the amount of transactions lost to banks is expected to come down to just .7 billion.

The BSP include OFWs’ non-bank remittances in its accounting of balance of payments figures under personal and transfer accounts. The approximate number is that 20 percent of these fund transfers go through the informal channels but the BSP said outside of the BOP estimates, actual non-bank OFW cash is 30 percent of total, while 70 percent are bank transfers.

Based on a survey done by the Department of Labor and Employment with the help of consular offices abroad, the BSP estimates anywhere between 20-30 percent that is remitted not from banking channels.

The central bank hopes to record more of these fund transfers when they go through the formal channels or sent via the banking system. Last year they said 75 percent of cash transfers are made through the banks, while 25 percent are through informal networks. This has since has increased to 30 percent.

BSP sees money transfers from OFWs increasing this year after banks channel more of these cash through formal networks and show higher OFW monthly reports.

Efforts by the central bank and the whole banking system to get a larger share of remittances through formal channels are expected to increase total cash from 75 percent to around 80 or 85 percent in the next two years.

The BSP has been encouraging Filipino migrant workers to send fund transfers through banks, which is cheaper and safer than door-to-door or other informal channels of remitting their hard-earned cash.

The BSP also intensified efforts to reduce the cost of remitting funds, which is a positive development for the banking system.