PHILIPPINE NATIONAL BANK EYES 20% SHARE IN OFW REMITTANCE MARKET

The business of remitting the hard-earned dollars of millions of Filipino workers overseas has become so stiff and so competitive that the spreads generated by banks like the Philippine National Bank (PNB) has narrowed drastically over the past five years, PNB president Omar Byron Mier said on Tuesday.

Most remittance units today collect remittance charges of US$7 or even just US$ 5 a pop, or about 20 per cent lower than the US$ 25 years ago.

"It is no longer as profitable such that investing in brick-and-mortar remittance outlets is no longer urgent or attractive," Mier told reporters.

Mier expects the remittances of Filipino migrant workers to end the year at zero or very minimal growth.

"Remittances should remain flat this year in terms of volume. We see a slowdown in certain areas, like the United States and in Europe. We expect remittances from Asia and the Middle East to remain flat as well," he said.

PNB wants to boost its share in the US$ 16.4 billion remittance market from the current more or less 17 per cent to about 20 per cent this year.

It has started setting up so-called automated remittance arms (ARMs) in various places in North America, particularly in supermarkets and in places where Filipinos tend to congregate.

There is even a plan to install ARMs aboard ships," Mier said.

Its local remittance network now extends to some 4,700 outlets and has tie-ups with remittance agents in Italy, Israel, Spain, Singapore, North America and the Netherlands. Its overseas remittance network spans over 105 branches, offices and remittance centers, said to be the most extensive of any other Philippine bank.

(PNA)

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