UCPB to widen OFW offerings

REPORT FROM BUSINESSWORLD UNITED COCONUT Planters Bank (UCPB) wants to expand its offerings to overseas Filipino workers (OFW) beyond remittance services to drive future growth. "We can’t look at just one market. Everything now is global and the competition is fierce," UCPB Vice-President for remittance marketing Victor Ruben Tuason said in a phone interview. "We would like to be of service to OFWs in a larger scale," he added. Among the other banking services that UCPB wants to make available to OFWs are deposits, predeparture loans, home and car loans, small business loans, investments, and retirement planning. The bank’s revival of its remittance business unit this year was its initial step to achieve the goal, he Mr. Tuason said. The bank used to be among the top banks involved in remittance transactions, but the business was shelved for quite a while so it could focus on its other business lines, he said. The bank has posted a 14% hike in foreign remittance receipts to $1.01 billion in the nine months to September from $883 million a year ago. While other local banks that have embarked on the same goal have started establishing branches abroad, UCPB has decided to forge more tie-ups with international remittance firms and beef up its information technology infrastructure. "Putting up new branches requires extensive capital and resources. We can deliver the same services that other banks do, but not in that manner," Mr. Tuason said. UCPB earlier signed a deal with Abu Dhabi-based UAE Exchange Centre LLC and US-based MoneyGram International. MoneyGram’s 100,000 outlets in 180 countries and UAE Exchange’s estimated clientele of 200,000 OFWs in the United Arab Emirates will allow the bank to extend its reach to the two major OFW destinations. The bank has also tapped a number of business process outsourcing firms and ship manning institutions for customer management accounts for their dollar receipts. Meanwhile, UCPB’s IT infrastructure is expected to host more online banking transactions from OFWs. The bank’s automation systems will be completed in the next six to eight months, Mr. Tuason said. "Electronic platforms are already a standard fare. Web-based banking is as efficient as putting up a branch, but more cost-effective," he added. The bank initially targets to roll out its expanded banking services to the Middle East, but it will eventually serve OFWs based in other regions, Mr. Tuason said. — Gerard S. dela Peña/BusinessWorld