Wednesday, November 16, 2011

Rural banks eye OFW remittances via BSP’s PhilPaSS

11/15/2011 | 07:13 PM

Rural bankers see an opportunity to be competitive in the money transfer business, which they intend to maximize by joining the Philippine Payments and Settlements System (PhilPaSS) of the Bangko Sentral ng Pilipinas.

“While remittance centers are a dime a dozen, there is still a way for us rural bankers to enter the industry by offering a faster yet affordable service to our clients in the countryside who are also beneficiaries of many OFWs. This is where the PhilPaSS remitting system comes in," said Ian Pama, president of the Rural Bankers Association of the Philippines (RBAP), which has 600 members.

Pama said none of the RBAP members have yet tapped into the PhilPaSS, the online and real-time payment system the BSP administers to facilitate transactions between banks.

"RBAP has a strategic role to play if and when the organization decides to use the system. Should RBAP members decide to use the system, then we can offer cheaper, if not the cheapest transaction fees without incurring any losses,"
 
The BSP has been urging banks to use the PhilPaSS Remit System for OFW remittances because it has a rate of P50 per transaction compared to P100 to P500 per charged by other money transfer systems. — ELR/VS, GMA News

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