BSP unveils new program to strengthen rural banking sector – UNTV News
Manila, Philippines – The Overseas Filipino Bank (OFBank) officially became the first branchless digital bank in the country’s history after obtaining a digital banking license from the Monetary Board of Bangko Sentral ng Pilipinas (BSP), the Ministry of Finance (DOF ).
OFBank, a wholly-owned subsidiary of the Land Bank of the Philippines (LANDBANK), was granted a digital banking license on March 25, DOF said in a statement on Monday.
Prior to that, the bank was able to start banking in June of last year using its then existing license to operate as a savings bank.
OFBank, under Executive Decree (EO) No.44 signed by President Rodrigo Duterte in September 2017, was established to establish a strategic bank dedicated to providing financial products and services tailored to the needs of overseas Filipinos .
“This milestone in the country’s banking history not only fulfills President Duterte’s campaign pledge to create a bank that caters to overseas Filipinos, but will also help the Philippines transition to the digital economy. “said Finance Secretary Carlos Dominguez III.
“When President Duterte announced that he would create a bank that would serve Filipinos based overseas, he wanted a bank that would be a pioneer in terms of modernizing and expanding the scope of services it offers them.” , he added.
OFBank was launched virtually in June of last year in the midst of the COVID-19 pandemic as the Philippines’ first branchless, digital-centric government bank, the DOF said.
While fine-tuning its operations, systems and processes to enable its formal transition to a digital bank, OFBank functioned as a savings bank, the DOF said.
In December 2020, the BSP issued Circular No.1105 containing the guidelines on setting up digital banks, paving the way for OFBank to apply for a license as a digital bank.
OFBank offers four digital products and services that include an Artificial Intelligence Digital Integration System (DOBSAI), which enables real-time opening of a mobile bank deposit account on supported iPhone or Android devices.
In addition to savings-deposit accounts, OFBank’s digital services also include fund transfers, bill payments, and versatile loan applications, the DOF said.
OFBank’s global digital reach spans 112 countries, with its customers able to access online services from 763 merchants integrated into its mobile app through the LinkBiz.Portal, he added.