Wells Fargo in search of local partner

California-based Wells Fargo & Co is actively looking for a local partner in the Philippines, specifically for its investment and consumer banking operations.

The Bangko Sentral ng Pilipinas (BSP) revealed yesterday that Wells Fargo officials have met with monetary officials to explore the possibility of setting up operations in the Philippines.

BSP Governor Rafael Buenaventura said Wells Fargo is seriously interested but did not plan to go on its own without a local partner who already has the network and expertise.

The 150-year old Wells Fargo is a diversified financial services company providing banking, insurance, investments, mortgage banking and consumer finance to consumers, businesses and institutions mainly in the US.

The bank is also involved in wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency services, computer and data processing services, trust services, mortgage-backed securities servicing and venture capital investment.

Buenaventura said Wells Fargo’s interest was prompted by the decision of the Paris-based Financial Action Task Force on Anti Money Laundering (FATF) to remove the Philippines from its list of non-cooperative countries and territories (NCCT).

Buenaventura said he has met with Wells Fargo officials looking for partners with the kind of operation and network that would fit its business model.

"They don’t want to directly open their own branches here so they prefer to get a partner whose network and expertise they can use," Buenaventura said.

For purposes of complying with the BSP’s know-your-client (KYC) requirements, Buenaventura said it would also make more sense for Wells Fargo to get a local partner instead of going on its own.

Buenaventura said Wells Fargo has recently developed expertise and network in income remittances mainly between the US and Mexico. "The remittance business is an area they can look at."

Wells Fargo reported that for its fiscal year ended Dec. 2004, its interest income rose eight percent to $20.97 billion. Net interest income after loan provision rose by a similar eight percent to $15.43 billion, reflecting reflects higher earning assets, and a decrease in borrowing costs. Earnings also reflected higher service charge on deposit accounts.