BDO targets Koreans in growing remittance business

(Updated 4:49 p.m.) Apart from Pinoys who live and work abroad, BDO Unibank Inc. has found a new market for its remittance business – foreigners who live, work,  and study in the Philippines –  starting with Korean expats.

 

As part of the business strategy, BDO has developed an international remit account for foreigners in the country to receive money transfers, which the bank unveiled on Wednesday.

 

As a debit card with no maintaining balance provided remittance is coursed through it at least once a year,  IRA will first be made available to Korean nationals.

 

“The most that we see now are Koreans,” Walter Wassmer, senior executive vice president and head of Institutional Banking Group, told reporters at a briefing in Makati City.

 

The Philippines was elevated to an investment grade in terms of creditworthiness by Fitch Ratings, Standard & Poor’s and Moody’s Investors Service last year, making it a more attractive destination for expatriates. 

 

The bank will service Korean nationals through its Korean desk and via partnerships with South Korea’s two biggest banks – Kookmin Bank and Hana Bank, said Wassmer. 

 

With the partnership in place, BDO expects to “lower inward remittance fees” to $25 from $30 per transaction. 

 

Over a million Koreans visited the Philippines last year, while 120,000 Koreans that include 30,000 students were listed as expats. 

 

BDO wants to corner “most if not all” of remittances sent to Korean nationals, particularly students “who are more reliant” on money sent to them by their family, said Wassmer. 

 

The bank also has Japanese, Taiwanese, Mainland Chinese desks which are potential markets for the remittance accounts, he added. – VS, GMA News