BPI remittance biz hits $2.8B in ’06

The total remittance business of the Bank of the Philippine Islands (BPI) amounted to $2.8 billion in 2006, up from $2.2 billion in 2005.

BPI Direct Savings Bank president Raul D. Dimayuga said that they expect a 15-percent growth in remittance business for this year.

OFW remittances are expected to hit over $12 billion in 2006. In 2005, remittances were recorded at $10.6 billion.

BPI Direct Savings is the BPI subsidiary that takes a lead role in the remittance business. It is also described as a virtual or click-and-portal bank that services its client through the telephone and the Internet. It is the leading segment of BPI directly handling remittances from overseas Filipino workers (OFWs) and migrant Filipinos (MFs).

OFWs and their beneficiaries can also tap the branch network of both BPI and BPI Family Savings Bank numbering a combined 700, and another 1,000 automated teller machines (ATMs) nationwide.

To be able to corner a larger market share, BPI will introduce new products while undertaking more aggressive marketing approaches.

“We will be designing more products specifically for the OFW and MF market,” Teresita B. Tan, BPI senior vice president said. “We will be re-educating our OFW brothers and sisters beyond just basic needs, like savings and investments. We will be re-introducing technology.”

The Ayala-led commercial and thrift bank have a loan portfolio for mortgage lending of over P1 billion principally focused on the OFW and MF market. And with its tie-ups with other Ayala Land subsidiaries, the bank can offer preferential arrangements for its remittance market.

Tan said that for example, they can restructure the first-year, one-time downpayment in such a way that the OFW client can already get hold of the land title, while paying in several tranches the downpayment.