OF Bank needs foreign partner – DOF

The Department of Finance (DOF) is planning to tap an international partner for the Overseas Filipino Bank (OFB) to provide better financial services to depositors working and living abroad.

Finance Secretary Carlos G. Dominguez III said that partnering with a foreign entity for OFB would be more cost efficient than establishing offshore branches that will cater to overseas Filipino workers (OFWs) and immigrants. In particular, Dominguez wants a partner that will help OFB in developing the lender’s digital banking system and keep it updated with technological advancements.

“We are looking at the possibility of getting an international partner so that we can better serve the requirements of our OFWs and overseas Filipinos,” Dominguez told reporters in a recent interview at the DOF headquarters. With the digital banking system, the finance chief believes that OFB would become more attractive to overseas Filipinos, “such that it will be easier to deposit money with us.”

Dominguez added that they could also tap the Insurance Commission in providing insurance products online for OFWs.

“You know establishing branches are, one, very time consuming because you have to get a license to do it, [two] it’s also expensive to send people there to or hire people to operate,” he said.While putting up branches in “some areas” is still an option, Dominguez said that having “a very good digital platform” will certainly cut manpower requirement for OFB.

Asked when the government plans to partially privatize the bank, Dominguez said the government wants first to make OFB a profitable financial institution.

“Basically, what we want to do is make this bank profitable, it has a niche so we can exploit that niche profitably, and offer investment opportunities for OFWs as well as local Filipinos to buy shares in that bank,” Dominguez said.