Govt unveils digital-only, branchless OFBank

THE government on Monday launched the Overseas Filipino Bank (OFBank) as the first digital-only, branchless Philippine bank that allows clients to complete banking transactions anytime, anywhere.

“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. The launch of OFBank today as a digital-only, first branchless Philippine bank is a testament to this,” OFBank Chairman Cecilia Borromeo said in a statement, referring to the coronavirus pandemic.

According to parent lender Land Bank of the Philippines (LandBank), OFBank uses a digital onboarding system with artificial intelligence, or Dobsai, to facilitate real-time account opening through its mobile banking app.

The digital account opening platform allows overseas Filipinos (OFs), overseas Filipino workers (OFWs) and their beneficiaries to securely and conveniently submit all requirements online.

In opening an account through the app, applicants need to take a “selfie” and the system would compare this with the photograph on the valid identification card uploaded by the client. The app has advanced encryption and security technology that protects sensitive information.

Three account types are available: OFBank Visa debit card for OFs and OFWs, OFBank Visa debit card for beneficiaries, and OFBank debit card for beneficiaries younger than 18 years old.

These are interest-bearing peso savings accounts with no minimum initial deposit and monthly average daily balance, as well as dormancy fee. To earn interest, the accounts need to have a daily balance of P500.

These debit cards allow cardholders, specifically the beneficiaries, to receive secure and convenient real- time fund transfers using Visa Direct, Visa’s real time payment solution, through a 16-digit card number.

Dan Wolbert, Visa country manager for the Philippines and Guam, said the introduction of OFBank as a digital-only, branchless local bank is timely as more Filipinos go digital. He cited Visa research in saying that nearly 80 percent of Filipinos are interested to use services from a digital bank.

Landbank said OFBank account holders could use the lender’s mobile facility to transfer funds to their beneficiaries’ OFBank and Landbank accounts free of charge.

Interbank fund transfers are subject to a service fee of P25 per transaction via InstaPay and P15 per transaction via PesoNet.