OFW Bank to open in 2017

TIGHTER competition looms in the Philippine banking industry as the national government announced its efforts to pursue the creation of an “OFW Bank.”

Cebu Bankers Club immediate past president Maximo Rey Eleccion said while it is still premature to weigh its effects on the banking industry, he said private commercial banks have a huge advantage in terms of their network.

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“We cannot say for now but it will be very difficult to compete with us, existing commercial banks, because we already have the network. (We already have in place) correspondent banks and remittance tie-ups that we built throughout the years of our operations,” Eleccion told Sun.Star Cebu.

However, should the OFW Bank come out to be aggressive in its expansion, the local banker sees this affecting privately-owned commercial banks.

“If they really go big (and) establish remittance centers where OFWs are concentrated, they would certainly affect us,” added Eleccion.MORE