Metrobank remittance business rises by 28% in Q1

MANILA, Philippines - MetropolitanBank & Trust Co. (Metrobank), the country’s largest bank, cornered more than a quarter of the remittance market in the first three months of the year, with $1.04 billion worth of funds sent home by Filipinos working abroad. The amount represents a 28% growth from the $813.18 million remittance transactions the George Ty-owned bank took in during the first quarter of last year. It also accounts for 26.3% of the $3.95 billion total remittances the Bangko Sentral ng Pilipinas (BSP) recorded during the January to March period. Carmelita Araneta, Metrobank executive vice president, said the overseas Filipino workers (OFW) segment is a key growth area so the bank has rolled out an "aggressive strategy" to grow its remittance business. "The OFW market is an important segment... We continually improve our products and services to meet the demands of this market," Ms. Araneta, who is also the head of the bank’s International Offices and Subsidiaries Group, said in a statement. Banks earn through remittance transactions by charging fees of anywhere from 4% to 9% of the money OFWs send to the Philippines. The central bank had been urging banks to bring down the cost of sending money home so OFWs stop using riskier channels. An independent study by Nielsen Media Research conducted last year showed that the banking industry cornered 61% of the remittance pie, topping the list of remittance channels used by OFWs. Filipinos abroad also still tap door-to-door and remittance centers services, as well as friends and relatives, in sending money to the Philippines, according to the study. - BusinessWorld