First Commercial Bank’s fintech system still requires approval

TAIWAN-BASED First Commercial Bank still needs to secure regulatory approval for its financial technology (fintech) system that it will bring here in the Philippines, according to the Bangko Sentral ng Pilipinas (BSP) chief.

“They are now trying to bring the technology that they have in Taiwan and that they have used in other countries in the region here. I think they need some approvals because its a fintech (financial technology) system,” BSP Governor Amando M. Tetangco, Jr. told reporters on the sidelines of the launch of First Commercial Bank’s Manila branch on Monday night.

The foreign lender has secured the central bank’s greenlight to start operating on Dec. 12, 2016, while its branch operations formally began last Dec. 16.

First Commercial Bank is the third Taiwanese lender to enter the Philippines, pursuant to Republic Act 10641 that opened the country to more offshore banks.

Under the law, only 10 foreign banks could do business in the Philippines at a time that meant that a new player can only start its operations once one of the accredited lenders pull out.

Taiwanese lenders Cathay United Bank and Yuanta Commercial Bank Co. Ltd. opened banking units in the Philippines in the past two years. In September last year, Hua Nan Commercial Bank Ltd. secured the central bank’s approval to operate in the country.

Mr. Tetangco also noted that First Commercial Bank expressed its interest in tapping the country’s small and medium enterprise ( SME) sector as the bank is Taiwan’s largest lender for SMEs.

“So they should provide for funding to SMEs and this is entirely consistent with our financial inclusion. Very inclusive growth…(is) one of the priorities of the government,” Mr. Tetangco told reporters.

As of end-November 2016, First Commercial Bank’s capital reached $2.797 billion. It has 19 overseas branches, seven sub-branches, two representative offices, one subsidiary in the United States and 190 branches in Taiwan. —