BDO, Korean banking giant tie up for remittance business

MANILA, Philippines - BDO Unibank Inc. (BDO) has partnered with two of Korea’s largest financial institutions-Kookmin Bank and Hana Bank-for a new product that would cater to the remittance service requirements of Korean nationals based in the Philippines.

BDO senior executive vice president and head of the  International Banking Group Walter Wassmer told a press briefing that starting March 3, the bank will offer the  International Remit Account (IRA) that would allow Korean nationals, especially students staying in the Philippines, to receive remittances from Korea fast and at reasonable costs.

“IRA would let the Korean beneficiaries have the remittance credited to their accounts on the same day, and also lower inward remittance fees versus the average prevailing industry charges,” he said.

Wassmer said they hope to substantially reduce the existing costs of remitting money from Korea to Philippines through this new service.

“The Korean nationals can use BDO’s extensive branch and 14,000 automated teller machine (ATM) networks nationwide as pick-up channels for the money sent by their relatives through Kookmin and Hana Bank,” Wassmer said.

“We just want to capture a bigger share of Korean remittances. They are remitting money using various products, we just want to give them a product that is tailor fit for them. All they have to do is open an account with us and we will make it easier for them,” he added.

According to Wassmer, they are open to partner with other Korea-based banks should the remittance volume becomes bigger.

He said they would want to take advantage of the growing Korean market.

“We have been ahead of our competitor in the Korean market so I believe we have a bigger share. We are the first bank which has a designated product for Koreans since 2010,” he said.

BDO senior advisor for Korean Desk Kyung Ah Lee said BDO would benefit from the wide networks of Kookmin Bank and Hana Bank which have branches of 1,200 and 650, respectively.

Aside from students, she said they hope to tap other markets for IRA like small businessmen, Korean residents/retirees in the Philippines.

At present, there are about 120,000 Korean nationals residing in the Philippines and still growing. Of this, 30,000 to 40,000 are students.