Total remittances coursed through the Philippine banking system, or the so-called formal sector according to the Bangko Sentral ng Pilipinas (BSP), reached $10.6 billion in 2005, and it is estimated to grow to $12.8 billion this year.
In the first semester alone, total transactions coursed through Mertrobank’s distribution network already amounted to $1.4 billion, or roughly half of its lower-end full year target.
Metrobank’s foreign branches and subsidiaries contributed roughly $564 million, joint remittance tie-ups added $94.47 million, and another $763 million from foreign correspondent banks.
Carmelita R. Araneta, Metrobank senior vice president and head of the international offices and subsidiaries said that the bank wants to leverage its international branch network for more businesses.
The country’s largest bank has an international network, composed of nine foreign branches, 23 remittance offices, 37 remittance tie-ups, and more than a thousand correspondence banks.
In its domestic network, Metrobank relies principally on its 557 branches, and the 150 branches of sister company, the Philippine Savings Bank (PSBank). "We are now looking at tie-ups with rural banks," Araneta added.
Metrobank president Arthur V. Ty in an earlier interview said that "with this bank, there is no such things as being content. We are always looking for new ways, opportunities."
Other than the classic transactions of the eight million overseas Filipino workers (OFWs) sending money to their relatives, Metrobank’s overseas transactions also involves other nationalities using the Filipino bank.
It handles cross-border transactions by foreign nationals involving its different overseas branches. Noticable volumes are registered in branches located in Hong Kong to mainland China, Europe to mainland China, and Taiwan to Indonesia, Vietnam and Thailand.
Another vastly developing market segment are the overseas Filipinos (OFs), or migrant Filipinos. They are found in large numbers in the United States, Canada, the United Kingdom, and Europe.
"We are now looking at the OFs as a niche market, and we are preparing investment and savings options for their disposable income," the Metrobank senior vice president said.
Araneta said that they are developing different portfolios or banking product portfolios, for different kinds and needs of OFWs and OFs.
The OFWs and OFs in the United Kingdom for example, are more of the white collar or professionals in the information technology (IT) market or the medical profession. While in Hong Kong, there are more domestic helpers with a growing number of professionals.
Thus, bank products are designed for their needs and financial capabilities.
"The world of the remittance business is exciting, if you know where to look, what to do," Araneta added.