The Philippine’s Department of Finance (DOF) has granted the Overseas Filipino Bank (OFBank) the first digital-only and branchless licence. The OFB is a subsidiary of the state-owned Land Bank of the Philippines (Landbank). OFB customers will be able to complete banking transactions anytime and anywhere across the globe.
The DoF announced that the central bank’s Monetary Board issued OFBank’s digital banking license on March 25th.
OFBank Chair Borromeo said, “Despite the global health crisis besetting the country today, our government remains true to its commitment of upholding the welfare of all Filipinos abroad and their families. In conclusion, the launch of OFBank today as a digital-only, first branchless Philippine bank is a testament to this”.
Finance Secretary Carlos Dominquez was quoted as saying, “Above all, I commend the OFBank and the LandBank under its President-CEO (Chief Executive Officer) Cecilia Borromeo. Their tireless efforts have led to the bank’s transformation into the Philippines first branchless and digital-only banking institution”.
The digital-only bank was created under Executive Order (EO) 44, signed by President Rodrigo Duterte in September 2017.
According to the DOF, the Landbank acquired the Philippine Postal Saving Bank and converted it into the OFBank. This action took place to fulfil the EO’s provision on the “need to establish a policy bank dedicated to providing financial products and services tailored to the requirements of overseas Filipinos (OFs).
How does OFBank work?
The OFBank utilises Digital Onboarding System with Artificial Intelligence (DOBSAI) to facilitate real-time account opening via the OFBank’s Mobile Banking Application. The new digital account opening platform allows Filipino’s overseas and their beneficiaries to securely and conveniently submit all requirements online.
Opening an account using DOBSAI via the OFBank Mobile Banking App is safe and secure. The applicant will only need to take a “selfie”. The system will then compare this photo with the photo in the valid identification (ID) card uploaded by the client. The app likewise has advanced encryption and security technology that protects sensitive information.
The bank’s account holders can use OFBank’s mobile facility to transfer funds to their beneficiaries’ OFBank and LANDBANK accounts. This service is free of charge. On the other hand, interbank fund transfers are subject to a service fee of P25.00 per transaction via InstaPay and P15.00 per transaction via PesoNet.
In conclusion, more Overseas Filipinos will be able to use the OFBank’s services.