HSBC, Opportunity International launch credit card-based remittance service

HSBC and Opportunity International launched yesterday a credit card – called the Opportunity Card that will allow overseas Filipino workers (OFWs) in the United States to remit foreign exchange through the card.

The partners, however, are still looking for a telecom company in the Philippines willing to adopt to their software allowing Filipinos overseas to send text messages to their recipients in the Philippines.

"We do not want to be limited by any exclusivity, and we want them to make adaptations to our software," said Simon Stenner, global program director of opportunity International.

The telecom firm should also be able to work on various banking applications, he added.

Meanwhile, Stenner explained that the remitter must pay $6.95 for bank account-funded transfers and $7.95 for credit card-funded transfer. The beneficiary (in the Philippines) is charged approximately $1.50 per withdrawal.

The pilot testing of the card starts with about 500,000 or members of three microfinance-oriented institutions. It was revealed that 25 percent of the combined members have relatives overseas sending money to the Philippines.

"We would like to tap that 25 percent by the end of 2006," Stenner said.

The three-microfinance oriented institutions are Tulay sa Pag-unlad Inc., the Taytay sa Kauswagan, and the Opportunity Microfinance Bank (OMB).

HSBC chief executive officer in the Philippines Warner Manning said that they will continue to seek for solutions to the needs of the local market. He added that introducing the unique credit card not only offers credit. "It also offers access to other financial services to those without."

HSBC already commited to extend up to P500 million annually for the microfinance sector in the Philippines.

Manning said that they are prepared to extend the amount specifically to various microfinance institutions (MFIs) including cooperative, non-government organizations (NGOs), and rural and thrift banks.

He said they are prepared to hold talks with the People’s Credit and Finance Corp. (PCFC) for a possible cooperation for lending.

The PCFC is the lead government agency mandated to mobilize resources for microfinance services. Under its charter, it should receive P500-million funding annually from the Philippine Amusement and Gaming Corp. (Pagcor).