Fil-Am neobank launched in the US

LOS ANGELES, California – BayaniPay, a cross-border digital financial platform for global professionals which partnered with East West Bank and BDO Unibank Inc. to launch the first-ever Filipino-American neobank, expects to tap at least 10 percent of the Fil-Am remittance market in the US in the next three years.

“We are aiming to grow by at least 10 percent in about three years. That’s about 200,000 customers. And $1.4 billion remittance per year, so 10 percent is a lot, but that’s what we are going after,” BayaniPay CEO Winston Damarillo said in an interview during the launch of the BayaniPay neobank services. There are about 4.2 million Filipinos in the US and about half of them are based in California.

“Filipino-Americans are one of the largest Asian-American groups in the US, with a $145 billion purchasing power. Despite their significant market size and buying power, no bank has catered to their financial needs and responsibilities, both here and in the Philippines,” Damarillo said.

He said they are optimistic that this near-term goal is achievable with the support of their partners.

Aside from East West Bank and BDO, BayaniPay has partnered with Seafood City, the largest Filipino-owned supermarket chain in the US, which has about a million visits every week from Filipino customers.

He said their optimism is also anchored on the cheaper, faster and more secure neobank services they are offering to their customers.

A neobank is a financial technology (fintech) company offering digital-first financial services in partnership with traditional banks. Because neobanks do not operate out of brick-and-mortar branches, they are able to save on costs and provide more affordable services to their customers.

“This is what I am proud about – we’re the highest earning ethnicity in the United States. That’s why we don’t just want to do the remittance, we want to be the banker for Filipinos. We want to give them offers so that their credit cards, direct pays, credit lines we can offer as well,” he said.

“It’s an innovation that understands the Filipino market. That’s why we call it Bayani (hero). So I think that would be our ingredient or formula to be able to deliver our goal, at least for the Filipino market here in the US,” he said.

According to Damarillo, they will engage in an aggressive marketing campaign in the coming months to promote their services.

“We’re doing good. We are acquiring about a thousand customers a month and that’s before media and advertising. Now we are gonna blow it up, so we expect this to pick up,” he said.

EastWest Bank executive vice president and COO Parker Shi, for his part, said BayaniPay offers zero-free remittances to the Philippines at market-leading exchange rates. With the BayaniPay Wallet, users can apply for the Easy Digital Checking Account, powered by East West Bank, to enjoy faster, zero-fee remittances, mange funds, and use a Visa debit card.

US-based EastWest Bank is the largest publicly-traded bank headquartered in Southern California. Founded 49 years ago, its assets amount to $61 billion. It operates in 120 locations all over the US and China.

BayaniPay is able to offer a zero-free remittance by allowing a point-to-point transaction between EastWest Bank and BDO, thus eliminating unnecessary middlemen transaction costs.

BayaniPay Inc. is a partnership among Talino Venture Labs, The Asian Journal, and Wavemaker Partners, and is the authorized agent of BDO Unibank.

BayaniPay vice chairman of the board Phillip Thong said after the US market, they are eyeing to launch their services to Filipinos and other immigrant groups in Canada.

BayaniPay will initially be available to California residents sending money to the Philippines. “In the near future, we’ll be releasing the service to other states,” he said.

With a minimum remittance of $99 and maximum daily transaction of $1,999, remittances through BayaniPay can be received in 24 hours or less.

Remittances can be claimed through major Philippine banks or any of the 1,400 BDO branches, 4,400 BDO Unibank ATMs or over 8,000 BDO Cash Agad outlets; plus rural banks, pawnshop partners, and Cash Pick UP Anywhere locations including: BDO branches, SM Forex, Business Centers, PinoyCenters, Palawan Pawnshop, Banko Mabuhay, Villarica Pawnshop, RD Pawnshop, Card Bank, Bank of Florida, QCRB and Rang-ay Bank.