Philippine National Bank (PNB) has expanded its remittance business in a bid to become the country’s leading commercial bank in the business.
It recently signed a remittance accord with Israel’s Ehud Neor to serve as its first send-out agent in the said country.
The partnership facilitates the establishment of remittance service centers in Israel, providing another alternative to overseas Filipinos who regularly remit dollars to the Philippines.
Ehud Neor, one of Israel’s leading companies in the money transfer business, will service the remittance needs of the Filipino community at its office in Nitzan and in Tel Aviv through its sub-agent, Hot Card.
Beneficiaries of overseas Filipinos, on the other hand, will receive their money via credit to PNB account, other bank accounts, door-to-bank, door-to-door, and advice and pay anywhere system (APAS). Clients using APAS may claim their remittances through PNB domestic branches, or from any of the 3,500 payout agents spread out nationwide.
Recently, PNB merged its two wholly-owned units in Hong Kong – PNB International Finance Ltd. (PNB IFL) and PNB Remittance Center Ltd. (PNB RCL) – with PNB IFL as the surviving entity. It will be renamed PNB Global Remittance and Financial Co. (HK) Ltd.
PNB is a dominant player in the Philippine remittance business. Its international presence is among the most extensive local banks with 104 offices in 14 locations across North America, Europe, Middle East, Asia and the Pacific.
PNB senior vice president for global marketing Patricia Tan expressed optimism the bank would generate remittance-related businesses of between $2.0-to-$2.5-billion in 2008.
In 2007, PNB accounted for $1.8 billion in the remittance business.
The remittance target, however, does not include that of Allied Banking Corp. The two banks merged earlier this year, but the merger process will only be completed towards the end of 2009.
Tan said she is confident the business will improve despite the global credit crisis.
“Some areas recorded lower than expected remittances but it was offset by other areas which recorded better than expected business,” the PNB official said.
But the anticipated downturn has prompted banks to make the necessary adjustments.
”We have been preparing for the poor environment by increasing channels like new or improved correspondent bank relationships, tie-ups with remittance companies, and other receiving or distribution outlets,” Tan said.