Several foreign banks are expected to use the Bangko Sentral ng Pilipinas’ (BSP) real time payments and settlements facility remittance platform by end-2012.
Director Bella Santos of payments and settlements office of the Philippine Payments and Settlements System (PhilPaSS) said JP Morgan has indicated its interest to use the PhilPaSS platform.
“It is possible for them to tap the system before the end of the year,” she said.
The PhilPaSS REMIT System allows banks to use the system for the settlement of remittance in a faster, safer and cheaper means.
Before the implementation of this remittance settlement for banks, banks hired couriers to deliver the money to banks of remittance beneficiaries.
It provides Filipinos working overseas cheaper transaction cost for remittance for credit to the accounts of the beneficiaries maintained in banks that are now connected to the PhilPaSS REMIT system.
The Filipino workers overseas, who have beneficiaries who maintain accounts in banks that are connected to BSP’s payments settlement system, will only pay P50 for each remittance transaction instead of the P150-P550 fee of remittance service providers that are not using the platform.
The system was initially used in May 2010 but became fully operational in October of the same year after 12 banks finally established their connectivity to the PhilPaSS REMIT System.
Santos said discussions are also on-going with the officials of Mizuho Bank, Ltd, the retail banking arm of Mizuho Financial Group, the second-largest financial services company in Japan.
She said that PhilPaSS has foreign bank members but JP Morgan and Mizuho would be the first users of the remittance platform.
And because of the interest of these banks to use the system, Santos said PhilPaSS officers decided to also discuss the same with the other foreign banks.
“We are targeting Korean Exchange Bank for our overseas Filipino workers in Korea and it will also be good if we can have Maybank for Malaysia.”