In the wake of coronavirus, an increasing number of transactions are now being carried out online to follow social distancing.
Joining the bandwagon, Philippines has now rolled out its first ever branchless bank through digitalization, by the name Overseas Filipino (OF) Bank. The financial inclusion program for the digital bank focuses the nation’s two million Filipino workers. The bank will also test the issuance of electronic receipts and will be benefitting migrant workers .
The decision was earlier noted by the Finance Secretary Carlos G. Dominguez III as the OF Bank was preparing for its relaunch. From the financial inclusion perspective, he remarked that the flow-on effects could be major for the Philippines government, as the bank will enable the overseas Filipinos to add to the economy by investing in their own country.
Earlier this year, the nation’s reserve bank- the Bangko Sentral ng Pilipinas (BSP) gave the digital bank a “no objection” clearance to go ahead and develop a digital onboarding system by tapping into AI. This decision was made to facilitate the process of knowing customers better.
