Thrift banks chamber sees no material impact of lower transfer fees

The thrift banking sector is seeing no material impact on its revenues from the ongoing reduction in digital transfer fees.

In an interview on the sidelines of Chamber of Thrift Banks (CTB) 52nd anniversary convention in Makati City on Wednesday, CTB chairman Manuel Santiago Jr. told reporters that “a number of our members have followed the lead of the universal banks.”

A number of universal and commercial, thrift, rural, and digital banks have waived or lowered their digital fund transfer charges in relation to the Bangko Sentral ng Pilipinas’ (BSP) Circular No. 1238, which mandates that all digital transaction fees remain lower than over-the-counter banking fees, be based on actual processing costs, and ensure that recipients receive the full amount sent without deductions.

“You will see sooner rather than later that most of our member banks are going to be waiving their fees as well,” Santiago said.

CTB is the umbrella organization of the country’s thrift banks.

“Definitely it will affect revenues, but in terms of whether it's going to be material, we think that it will not be. While we see a reduction in revenues, the increase in transaction volumes could probably augment what you're losing in terms of transfer fees,” Santiago said.

Thrift banks growth

In 2025, thrift banks saw its total assets grow by 25% to P1.38 trillion.

Santiago said CTB is expecting the thrift banking sector to continue its growth trajectory this 2026 “despite the current situation,” referring to high inflation and interest rate environment resulting from the recent global fuel price volatility.\

“We're expecting the same growth level… Well, the basic driver here is financial inclusion. There's a lot of new services that are being offered. And I think this will drive particularly the need for credit and the thrift banks basically provide a lot of this,” he said.

In his remarks during the event, CTB president Jaime Valentin Araneta noted that the thrift banking sector’s growth came amid the continued gain of the country’s digital economy with more than half of retail transactions conducted digitally, noting that InstaPay and PESONet processes P24.7 trillion in transactions last year.

Santiago, likewise, said that “thrift banks have weathered economic crises, financial disruptions, and changing customer expectations.”

“Today’s challenge is not choosing between physical branches and digital banking. It is creating a seamless customer experience by integrating traditional banking, digital channels, and artificial intelligence,” said the CTB chairman. —RF, GMA News