Image via WikipediaHave you tried to transfer funds between two different banks in the Philippines? Well, most people do especially overseas Filipino workers (OFWs) on their remittances. How much does it cost you? In my case, when I transferred 600 pesos from my Union Bank (UBP) account to my BPI account through online banking, it took me three days before knowing that only 450 pesos reached my BPI account. My reaction was a feeling of slight stupidity. I just lost 25% of my deposited amount! From that moment on, I promised myself not to do that again (charge to experience). I will take the effort to personally do the transfer.
Good News on 2010
But now, I think I have to break my promise in the coming year! Why? Because next year, Banko Sentral ng Pilipinas (BSP) in agreement with the Association of Bank Remittance Officers Inc. (ABROI) will lower the interbank transfer charges from the current rate of 100-550 pesos down to only 50 pesos.
The reason behind this dramatic decrease is the full utilization of BSP owned PhilPass settlement system in interbank transfers. Before, each bank had their own ways of transferring money to other banks. They often use couriers to deposit it to their beneficiaries’ account. There are cases of robbery and other settlement risks that adds-up to the cost of interbank transfers. With the use of PhilPass system, the risks and delays will be eliminated. You won’t have to wait three banking days before the transaction is completed!
Starting Mach 2010
The official implementation of this system is expected to take effect by March 2010 but the actual system integration and preliminary test runs will be done as early as January 2010. ABROI member banks that will participate on this project are the following: Allied Bank, Asia United Bank, Banco de Oro (BDO), Bank of Philippine Islands (BPI), China Bank, Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP), Metrobank, Philippine National Bank (PNB), Rizal Commercial Banking Corporation (RCBC) and Union Bank of the Philippines (UBP).