ADVANTAGEOUS FINANCIAL COMPANY FOR OVERSEAS FILIPINO

WORKERS

STI College
Narciso Street, Surigao City, Surigao Del Norte

Aliwanag, Jessie Lian I.

ANGELICA C. HAGONOS
______________________________
General Mathematics Adviser

JANUARY 2023
 Table of Contents

Chapter 1 Pages
Introduction………………………………………………………………………………....1

Significance of the Study....................................................................................................... 2

Scope and Limitation……………………………………………………………………….. 3

Chapter 2
Literature Review……………………………………………………………………………4

Chapter 3
Methodology……………………………………………………………………………….. 5

Gathering of Data………………………………………………………………………… .. 6

Chapter 4
Results.................................................................................................................................... 7

Discussion............................................................................................................................... 8

Chapter 5
Conclusion.............................................................................................................................. 9

Reccommendation.................................................................................................................. 10
 CHAPTER 1

INTRODUCTION

Global labour mobility and Overseas Filipino workers have been a topic of interest

due to rapid growth and its apparent links with development goals. Among the 197 countries

in the world, the Philippines has one of the highest rates of migration. A common belief is

that one can find a Filipino in practically every corner of the world (Calzado, 2007) This

migration is spurred by the Filipino's quest for greener pastures, Millions of Filipinos have

gone abroad for decades now in the pursuit of permanent settlement or interim employment

Overseas as an answer to the country's "weak" economy. As of late, more than 10 million

Filipinos are either employed and /or residing overseas (Asis, 2017). Push and pull factors

such as insufficient income levels in the home country, better job opportunities abroad that

give higher compensation, the opening of borders, ease of mobility brought about by better

communication and transportation infrastructure, and the expanding market for services

around the world are what influenced migration (Calzado, 2007), by Habaña(2022), and with

that large number of OFWs what would be the most advantageous loan and investment offers

amongst the many types and companies that offer them.

A loan refers to a type of credit vehicle in which a sum of money is lent to another

party in exchange for the future repayment of the value or principal amount where the lender

also adds interest or finance charges to the principal value in which the borrower must repay

in addition to the principal balance (Kagan, 2021), a investment is an asset or item acquired

to generate income or appreciation, appreciation refers to an increase in the value of an asset

over time, when individual purchases a good as an investment, the intent is not to consume

the good but rather to use it in the future to create wealth (Hayes, 2022).
 The main purpose of a loan is to help people get out of financial trouble or finance

fixed costs even if they do not have immediate cash available (Push, Et al ,2022), and the

purpose and benefit of investment are for you to invest in the right places, there is a lot of

potential for long term returns, one of the main benefits of investing is that the money you

invest has the potential to grow substantially over time rather than just putting your money

into a saving account to save for the future, investing it can be a much smarter way to make

your money work for you (Picardo, 2022)

The researchers aimed to conduct this research to inform OFWs about loan and

investment offers that can help them make the most out of their hard-earned money. Also,

this study would be beneficial to those who work a long distance away from home and their

families, as these informs them about some advantages that financial companies can provide

for them

SIGNIFICANCE OF THE STUDY

The purpose of this research is to inform our OFWs about the existence of

loan/investment offers that would be advantageous for those who worked abroad, what

financial companies would help them and give better benefits, as will as how they should

trust those companies. Knowing about the loan/investment offers gives them an

understanding of asset management and creation as well as knowing to have insurance.

This research paper is created to give even in a small way OFWs can choose to obtain

assets or create assets with their hard-earned money. It aims to provide crucial information

and knowledge regarding OFWs on what loan/investment companies could give them several

benefits that could help them ease their burden and to ensure that their efforts will not go to

waste.

SCOPE AND LIMITATION

loan/ investment offers and the things that would be the most advantageous for overseas

Filipino workers who worked abroad. And will also cover what helps them ease the burden in

their lives and the needs of their family, and also opportunities they would obtain by invest

their hard earned money. This research would like to find out the best financial company for

overseas Filipino workers, and also some advises for loaning and investing for the future and

present modern day heroes, as well as how the information was obtained and analyzed, and

the purpose of the research.

REVIEW OF RELATED LITERATURE

Global labour mobility has been a topic of interest lately due to its rapid growth and

its apparent links with development goals. Among the 197 countries in the world, the

Philippines has one of the highest rates of migration. A common belief is that one can find a

Filipino in practically every corner of the world (Calzado, 2007). This migration is spurred by

the Filipino’s quest for greener pastures. Millions of Filipinos have gone abroad for decades

in the pursuit of permanent settlement or interim employment overseas to answer the

country’s ‘weak’ economy. As of late, more than 10 million Filipinos are either employed

and/or residing overseas (Asis, 2017). Push and pull factors such as insufficient income levels

in the home country, better job opportunities abroad that give higher compensation, the

opening of borders, ease of mobility brought about by better communications and

transportation infrastructure, and the expanding market for services around the world are

what influenced migration (Calzado,2007), the Philippines is a country with a prevalent

culture of labor migration spanning more than a century. From the time of the Manila-

Acapulco trade when Filipinos manned Spanish fleets, the widespread migration during the

American occupation, as a response to the need for labour workers in European countries

after the Second World War, to the Marcos administration’s adoption of labour export

initiatives (Samonte, et al., 2007).

In the last three decades, labour export has become the country's main weapon to

combat the high rates of unemployment and strengthen the country's dollar reserve (Cai,

2011). Moreover, there have been shreds of evidence that labour migration has significant

ramifications on the country’s growth and development (Calzado, et al., 2007), so with such a

large number of OFWs what would be the most advantageous loan and investment offers
from a wide number of offers. For starters what is a loan, the term loan refers to a type of

credit vehicle in which a sum of money is lent to another party in exchange for future

repayment of the value or principal amount. In many cases, the lender also adds interest or

finance charges to the principal value the borrower must repay in addition to the principal

balance (Kagan,2021).

Loans may be for a specific, one-time amount, or they may be available as an open-

ended line of credit up to a specified limit. Loans come in many different forms including

secured, unsecured, commercial, and personal loans, Loans are advanced for several reasons

including major purchases, investing, renovations, debt consolidation, and business ventures.

Loans also help existing companies expand their operations (Kagan, 2021).

Loans allow for growth in the overall money supply  in an economy and open up

competition by lending to new businesses, An example of loans for OFWs if they need a loan

is a SSS Salary Loan for OFWs, OFWs are eligible for an SSS salary loan if they're below 65

years old with at least 36 posted monthly contributions, including six contributions paid

within the last 12 months before the month of the loan application (Zoleta, 2021).

The annual interest rate is 10% based on diminishing principal balance, a loan

computation method that leads to lower interests as the loan is repaid over time before the

salary loan amount is released, a 1% service fee is deducted from it, a 1% penalty fee is also

charged for every month that the loan is not repaid by the due date (Zoleta, 2021).

What is an investment, investment is an asset or item acquired to generate income or

appreciation, appreciation refers to an increase in the value of an asset over time. When an

individual purchase a good as an investment, the intent is not to consume the good but rather

to use it in the future to create wealth (Hayes, 2022).

money, or an asset—in hopes of a greater payoff in the future than what was originally put in.

For example, an investor may purchase a monetary asset now with the idea that the asset will

provide income in the future or will later be sold at a higher price for a profit (Hayes, 2022).

And for OFWs, It is advised that a portion of the significant remittances that Filipino

expatriate workers contribute be set aside for investments, the good news is that OFWs have

a variety of investment possibilities at their disposal, four things can influence the decision of

investment you make, any investment should considerably aid an OFW in achieving a

particular and challenging objective, this objective might be a monetary one that leads to a

brighter future. The temporal horizon is the second element, the time that each OFW would

aim to return to the country and the period that they plan to retire are some pertinent time

horizon issues (Lessandra, 2021).

The risk profile comes in third, Undoubtedly, larger risks come with higher returns,

For investors that are risk-averse or aggressive, there are many investment possibilities

available, The fourth factor is purpose, Every investment made must ultimately contribute to

the OFW leaving a lasting impact, Advertisement Pooled funds are one alternative for

investing. These are a few examples of mutual funds, unit investment trust funds, and

variable unit-linked funds, These funds are managed by devoted, experienced professionals

that mostly invest in bonds and stocks, Variable unit-linked funds also offer insurance

protection in this circumstance (Lessandra, 2021).

According to Chen (2022), an OFW must consider the fund's performance and profile

while selecting the best pooling fund, To evaluate performance, both long-term and short-

term data are important. To further such information, direct stock market investment is one

type of investment. Also, to make better decisions than pooled money, the OFW would need
to devote more time and effort to learning about techniques like fundamental analysis and

technical analysis, Guarantee that volatility in the stock market is a given, an aggressive risk

profile would be required, Diversification is crucial since various equities operate differently,

A stock portfolio that includes both established and emerging companies can be considered to

be strong. Real estate is one possible investment, Investments of this kind may result in gains

through price growth and rental income, The location would be a key factor in deciding On

the type of real estate. Different regions have various trends in development (Chen, 2022)
 CHAPTER 3

METHODOLOGY

Research Design

By researching literature, related to the topic on the internet, books, articles, and many

more to find the qualitative data that the researchers were looking for and after sufficient data

was gathered. And after, a deductive method to sort the data based on there publish date,

author, relevance, the authors reputation, validity, the many data that was collected which

other method would not suit, this approach helped to make it easier for the researchers to find

the data because the researchers have already found it for them, because the data is a

culmination of many different data gathered into one singular research paper.

Research Tools

The tools the researchers used to collect all the data were simply just devices like cell

phones and laptops and some books, and through those methods a large amount of data was

gathered.

Gathering Of Data

The data was gathered by the researchers through the usage of devices and the

internet, the researchers gathered as much as possible and then when the data was adequate. It

will be sorted through a process deduction on which the age of the data, its validity, validity

of the author, and its relevance to the research was the bases of sorting the data gathered.
 And then, the data will be compared to each other to find out the most suitable data to

place on the research paper, and when the suitable data was selected it was then further

researched on because the data gather only covered some parts of the whole and when as

much as possible data was gathered about the topic, that is how it was found out that the most

advantageous financial company for overseas Filipino workers was BDO.

CHAPTER 4

RESULTS AND DISCUSSION

With some research, the researchers found out the reason why Filipinos work abroad

is to further their career and get more opportunities to earn money (owwamember, 2022). In

order to uplift their financial condition and to give a better future for their loved ones that is

why OFWs swallow the bitter pill to give their loved ones a good future and knowing the

investment/loan opportunities that exist would assist them in that endeavour of

theirs(owwamember, 2022).

(Based on the gathering of data on the most advantageous loaning/investing

companies in the Philippines amongst the many that exist, by bangko sentral ng Pilipinas’s

assessment BDO has been the most biggest a most popular bank in county as of September

30 2022, as will as by most OFWs do to the benefits they provide for OFWs. )
 According to the website of Banco De Oro (2022), theirs banks have a total of 71.08

billion U.S. dollars in assets by the Statista Research Department in September 16 2022, the

Bank has the largest distribution network with over 1,500 operating branches and offices, and

more than 4,500 ATMs nationwide, and add to that BDO has 16 international offices

(including full-service branches in Hong Kong and Singapore) all across the globe as will as

a total of 12 million people who invest in the company.

While according to the company of Sun Life Financial, they have a total of 345.4

billion CAD in 2021, and with over 70 branches nationwide (kalibrr, 2022).

unfortunately they do not have a bank as will as ATMs, with 6 million users.

Also, the Bank of the Philippine Island (BPI), the company stated that they have a

total assets of 40.73 billion U.S dollars, and having 1,173 branches as well as 2,700 ATMs

and CAMs, and a 4 million enrolled users in 2017.

Based on the data being gathered by the researchers, Banco de Ore or commonly

called BDO, is the number one (1) bank in the country and the largest bank by assets. The

bank is also a full-service (explain what service), universal bank offering an array of services

such as (explain and put some example). Their services also includes corporate and retail

banking, treasury, trust, credit cards, corporate cash management, and remittances. Through

its subsidiaries, and accept all major credit and debit card branch it also offers leasing

(explain), investment banking, private banking, bancassurance( explain), insurance brokerage

(explain), and stock brokerage services which is (explain)(BDO, 2022).

CONCLUSION AND RECOMMENDATION

The researchers have reached to the conclusion that the most advantageous

loaning/investing(financial) company for Overseas Filipino workers is BDO due to their large

size of 1,500 operating branches and offices which is able to accommodate a large number of

people without any problem. In terms of company’s reputation, as being the leading number

one bank in the country for 2 years in a row and its reputation has also increased in the past

year specially amongst Overseas Filipino workers for the benefits the company provides.

In addition, their accessibility on many platforms is another advantage of their size

they have many branches (1,500) around the country as well machines like ATMs (4,500).
Another advantage are their substantially high rate, because of their large amount of loyal

investors ( 12 million) the rates of BDO are substantially high (0.25%). Also, the majority of

Overseas Filipino workers use BDO as a go-to financial company due to the benefits that

they provide for them in their line of work.

RECOMMENDATION

Based on the researchers research they discovered a recommendation from

Bankbazzar (2023) and Execter (2016) for what overseas Filipino workers to do when

loaning/investing. For Overseas Filipino Workers(OFWs) who are looking for a loan you

must first evaluate your needs before taking loans, this includes the following:

1. Do your research before you take a lone on all other available Options to you (Don’t just

blindly go for the first lender who gives you an offer)

2. Make sure your credit score are 750 and above because it will land you a good chance of

getting an offer.

3. make sure your credit score are low because less chances of getting an offer and with a low

interest rate because low credit score equals higher interest rates.

4. compare interest rates with other offers available.

5. check the eligibility and reputation of the lender, don’t apply for multiple loans because

less means good.

6. check your credit score before you apply

These might not sound like much but knowing will help even in a small way the

modern day heroes how to get the most of a loan and to avoid some problem that may arise.
For Overses Filpino Workers(OFWs) who are thinking of investing the researchers

recommends the following:

1. Establish a plan on how you’d like to invest your money on how much can I invest, what

kind of investment do I want, what can I afford to lose, what are the goals of the investments,

how till you reach that goal , and etc.

2. Understand the risk because the higher the reward the higher the risk and also understand

your risk tolerance.

3. Be tax efficient because if not you might have to pay some of the money that could have

been profit Into taxes.

4. Diversify because in these ever changing world the market also changes diversifying your

investment portfolio can help your portfolio over an economical cycle,

5. don’t look for tips on how to invest on random because there are a lot fakes out there,

whether you like it or not you have to learn on your own

6. Invest don’t speculate, like what one of the most influential investors of history Warren

Buffet said its far better to buy a wonderful company at a price than a fair company at a

wonderful price.

7. Invest regularly because investing little and often is sometimes better than investing larger

lump sums

8. Reinvest unless you are looking for a specific period income from your investment, it

would be good to consider reinvesting the capital return from your funds or dividends.

9. Reassess be in investing it is never ending learning

10.stick to your plan because its a laid plan that you yourself created
 These might not sound like much but knowing will, even in a small way help the

modern day heroes how to get the most of an investment and to avoid some problem that may

arise, the researchers hopes that even in a small way that the work that we conducted could

help our modern day heroes.

Reference

Finance and Accounting Studies. (2022c, January 15). The Effects of Labor Migration and

OFW Remittances on the Level of Poverty in the Philippines | Journal of Economics, Finance

and Accounting Studies. Journal of Economics, Finance and Accounting Studies. Retrieved

January 9, 2023 from: at:

https://alkindipublisher.com/index.php/jefas/article/view/2695

Garcia, K.L., Habaña, K. and Canto, D. (no date) The effects of labor migration and OFW

remittances on the level of poverty in the Philippines, Journal of Economics, Finance and

Accounting Studies.Retrieved January 9, 2023 from

:https://alkindipublisher.com/index.php/jefas/article/view/2695 (Accessed: January 9, 2023)

Kagan, J. (2022, September 14). Loan. Investopedia. Retrieved January 9, 2023, from
 https://www.investopedia.com/terms/l/loan.asp

Hayes, A. (2022, November 21). Investment Basics explained with types to invest

in.Investopedia. Retrieved January 9, 2023, from:

https://www.investopedia.com/terms/i/investment.asp

Lessandra, L. (2021, August 13). OFW Investment opportunity: Best ways to grow your

hard-earned money: Real Estate Investment Philippines. Lessandra. Retrieved

January 9, 2023, from https://lessandra.com.ph/blog/2021/03/16/ofw-investment-

opportunities

Why ofws need to seek investment opportunities. Why OFWs Need To Seek

InvestmentOpportunities | Pru Life UK. (n.d.). Retrieved January 9, 2023, from

https://www.prulifeuk.com.ph/en/explore-pulse/health-financial-wellness/ofwsneed-

to-seek-investment-opportunities/

Chen, J. (2022, September 27). Risk averse: What it means, investment choices and

strategies. Investopedia. Retrieved January 9, 2023, from

https://www.investopedia.com/terms/r/riskaverse.asp

About: BDO Unibank, Inc.. (2014) About | BDO Unibank, Inc. Retrieved from

https://www.bdo.com.ph/mobile/about-bdo (Accessed: January 9, 2023).

https://www.bankbazaar.com/personal-loan-tips.html (Accessed: January 9, 2023).

Top ten tips for first time investors from Strawberry Invest. Strawberry Invest. (2016, February

1). Retrieved January 9, 2023, from https://www.strawberryinvest.com/knowledge-

hub/top-10-tips-for-first-time-investors/