China Bank taps Saudi bank to expand remittance services

MANILA, Philippines - Local commercial bank China Banking Corp. (China Bank) has partnered with Saudi Arabia’s largest bank in a bid to corner a large chunk of remittances coming from Filipinos based in the kingdom. In a disclosure to the stock exchange, China Bank said it signed the agreement with the National Commercial Bank (NCB) last April 15. China Bank said its remittance service, China Bank On-Time Remittance, complements NCB’s Quick Pay Remittance Service. The tie-up covers NCB’s entire network of close to 270 branches and over 1,200 ATMs in Saudi Arabia and China Bank’s combined network of branches, ATMs, and partner payment outlets of almost 1,500, giving both remitters and beneficiaries easy access to the fast and reliable remittance services of both banks. "Saudi Arabia remains the top destination for OFWs (overseas Filipino workers) with almost 1.5 million Filipinos now working there," said Ricardo R. Chua, China Bank’s executive vice president and chief operating officer. "This partnership allows us to have a wider coverage of the Arab region and offer our services to the OFWs in Saudi Arabia." OFWs from Saudi Arabia can now send funds through NCB’s Quick Pay Remittance Centers, ATMs, IVR-phone banking and Alahli Online Banking directly to their beneficiaries’ China Bank accounts, account credits with another bank in the Philippines. OFWs can also avail of cash pick-up or door-to-door delivery. "The agreeement also covers an alternative mode of sending money quickly and cost effectively — through the enhanced China Bank On-Time Remittance Card which will be launched soon," China Bank told the exchange. China Bank On-Time Remittance is currently available through its partner banks and money transfer agencies in over 4,000 locations nationwide. Established in 1920, China Bank is the first bank in Southeast Asia to process deposit accounts online in 1969 and the first Philippine bank to offer phone banking in 1988. For 2007 it recorded a net income of P3.68 billion, which translated to a 15.57% return on equity and a 2.25% return on assets. It ranked as tenth largest bank in terms of assets last year. The NCB, on the other hand, is the most prominent among Saudi banks and was the first bank established in Saudi Arabia. The NCB, earlier this month, concluded the same partnership agreement with Metropolitan Bank & Trust Co. - Lovely Nica P. Lee, BusinessWorld