The Overseas Filipino Bank (OFBank), a subsidiary of the Land Bank of the Philippines, would be transformed into the country’s first “branchless digital bank” which will be launched in June 2020, Business World reported.
The services of digital banks cater to specific needs of overseas Filipino workers’ (OFW).
But first, LANDBANK President and CEO Cecilia C. Borromeo said, as the pioneer in the field
there is a need to coordinate with the Bangko Sentral ng Pilipinas (BSP) for formulation and/implementation of new regulations.
She said OFBank will also offer financial services such as insurance and digital payments aside from lending.
Meanwhile, BSP Deputy Governor Chuchi G. Fonacier said existing regulations can cover digital banks.
“The proponent digital bank should present to the BSP its business model. So, depending on the business model, that’s how the BSP would evaluate taking into account existing regulations,” she said.
Finance Secretary Carlos G. Dominguez III earlier said OFBank can benefit up to 10 million OFWs.
“Now if you’re going to go to the traditional way of doing banking, of setting up a branch, getting permission from the different countries to set up a branch, it’s going to take you forever. It’s better to spend time on doing it digitally. That’s easier to reach all your potential customers,” Dominguez said.
The OFBank has an office at the Philippine consular office in Dubai where OFWs can inquire about OFB’s banking services, including peso automated teller machine savings, time deposits, and checking accounts, loan products, investment products such as unit investment trust funds, payment services, and remittance services.
