BDO, Wells Fargo sign deal on remittance transfers

MANILA, Philippines -- Local banking giant Banco de Oro Unibank seeks to further grow its lucrative overseas Filipino remittance business via a new partnership with American financial giant Wells Fargo & Co.

San Francisco-based Wells Fargo, for its part, has effectively tripled its remittance pay-out locations in the Philippines – the fourth largest country in the globe in terms of inbound remittance – by hooking up not just with the country's largest bank but with the leading non-bank domestic remittance retailer M.Lhuillier Financial Services Inc.

"We understand how important remittances are to the Philippines," said Daniel Ayala, executive vice president and head of Wells Fargo's global remittance services, during Thursday's signing ceremonies on this partnership.

"By helping out Filipino customers reach more locations throughout the country, we hope we can stimulate the economy of their homeland by supporting their family and friends."

BDO has 650 branches and 1,333 automated teller machines and was cited by the Bangko Sentral ng Pilipinas as the largest remittance channel in the country in 2009 based on volumes. In addition to its vast retail network, BDO has existing tie-ups with rural banks as well as the shopping mall and retailing units of its sister companies under tycoon Henry Sy's SM group.

With this new tie-up, overseas Filipinos who are Wells Fargo customers can send up to $3,000 a day to their beneficiary through BDO or up to $1,000 a day to their beneficiary at M.Lhuiller for $5 from an eligible Wells Fargo account or for $7 if originated from cash.

Customers may also qualify for a discounted fee based on their account relationship with Wells Fargo. Remittances to the Philippines are denominated in Philippine pesos.

The tie-up is seen allowing BDO, already accounting for a hefty 30 percent of the inward remittance business, to further grow its market share.

M. Lhuillier vice president Michael Lhuillier, for his part, said his firm's working relationship would help millions of Filipinos living and working in the US better facilitate their money transfers to local beneficiaries. M. Lhuillier has 1,300 locations across the country including remote areas such as Batanes, Tawi-tawi, Surigao and Siargao.

"Together we are offering a service that will provide a secure, convenient and competitively priced remittance services," Lhuillier said. - Doris Dumlao, Philippine Daily Inquirer, October 01, 2010