State-owned Land Bank of the Philippines and New York-based Citibank recently formalized an agreement to accommodate the increasing volume of dollar remittances from Filipinos overseas.
Under the deal, Filipinos abroad will be able to send their remittances through the use of Citibank’s global remittance platform and Landbank’s inward remittance services.
This partnership is considered a strategic complementation of the strengths of each bank, Landbank said in a statement.
Citibank has a vast network overseas while Landbank is present in all the provinces across the country where families of most OFWs reside.
The agreement, said Landbank senior executive vice president Alfonso Cruz Jr., is part of the financial institution’s programs to support the roughly 12 million Filipinos abroad.
“This is part of Landbank’s new initiatives in support of its thrust of playing a bigger role in serving the remittance requirements of OFWs,” Cruz said.
This year, Landbank has taken a more aggressive stance to increase its share in the expanding remittance business of Filipinos abroad, with $407 million inward remittances coursed through the bank from January to September. The figure is 30 percent higher compared to the $313 million recorded in the same period last year.
Early this year, the government bank also introduced its Cash Card for OFWs in partnership with Smart Communications Inc.
It also established new tie-ups with 17 remittance companies which have strong and established client base, and partnered with 19 new shipping and manning agencies in addition to its existing tie-ups with 42 agencies.
Last month, Landbank Remittance Co., a wholly-owned subsidiary, opened its branch in San Francisco, California to accommodate remittances from OFWs and other Filipino expatriates in the United States.