Globe heightens remittance, microfinance businesses

MANILA, Philippines – Globe Telecommunications is increasing its involvement in the microfinance and remittance business.

According to Globe Telecommunications (Globe) president Ernest L. Cu, the telecommunications company is seeking the approval of the Bangko Sentral ng Pilipinas (BSP) to be able to accept and disburse cash sourced from overseas Filipinos.

The outlets for accepting and disbursing remittances will be done through its over 15,000 Globe dealers and distributors.

“The goal this year, with the blessings of the BSP, is to enable our 15,000 plus dealers nationwide, to become cash-in, cash out points,” Cu said.

If the BSP does not give its approval, Globe’s distribution centers can only disburse per transaction amounts not more than P40,000 as required by international standards combating money laundering. “For us, the higher the amount, the better,” he added.

Globe would also like to simplify the requirements for receiving or sending the remittances by doing away or simplifying the Know Your Customer (KYC) requirements.

“We are trying to automate that aspect of the business to make it easier to identify yourself, taking into account the KYC requirements of the BSP.

All of it must be related to Globe’s promise of customer ease and relevance,” the newly-installed chief executive said.

Today, the beneficiaries go to a BPI branch, but there are more Globe dealers and distributors than there are branches of banks, so it helps reduce the distance between the sender of the remittance and the recipient.

Globe is already in the remittance business, with its GCash platform. The GCash platform is operated by the Globe consumer mobile platform introduced by G-Xchange Inc., a Globe subsidiary.

It is the same platform for microfinance concerns as well as the mobile banking services of BPI.

GCash services 300 rural banks and over 10,000 of their clients in various banking requirements, which includes remittances and microfinance.

Meanwhile, the telecommunications company has entered into a joint venture with the Bank of the Philippine Islands (BPI) and Ayala Corp. to form a microfinance bank.

Globe owns 40-percent equity in the bank that will advance microfinance banking through wholesale lending. The other 40percent is controlled by BPI, and the remaining equity with Ayala Corp.

Cu said that initially, the bank will be involved in wholesale lending to microfinance institutions, and supporting the retail finance outlets.

“Depending on how it goes, we will know if we will go to the retail side of it,” the chief executive added.

Since it is still in the so-called formative stages, the Globe president preferred to limit information on the bank’s formation other than that the bank’s mandate is to bring microfinance to the next level, with the power of the three entities behind it.

It was reported that the team comprising the microfinance arm of BPI would be the core of the microfinance bank.