The move aims to cater to the overseas Filipino workers in the country.
Manila-based Rizal Commercial Banking Corp (RCBC) is planning to roll out a blockchain-powered remittance service for overseas Filipino workers (OFWs) in Japan before the year ends.
“We want to serve the OFWs in Japan through this technology and we’re doing it in partnership with two Japanese banks,” RCBC First senior vice president Manny Narciso told local media.
The use of blockchain technology will speed up the remittance processes and push costs down as there will be less fees to be collected.
Narciso adds that RCBC already has a partnership with Resona Bank but has declined to mention the other Japanese bank partner. The Manila lender will tie up with IBM for the blockchain infrastructure. “IBM has decided to pilot it with 15 banks around the world, we’re the only one in the Philippines that they included in this pilot test,” Mr. Narciso noted.
Cash remittances from OFWs in japan hit $137.43m in April, which is the largest in Asia.
RCBC's announcement comes on the heels of an earlier partnership with two Japanese regional banks Osaka-based Kansai Urban Banking Corp. and Kobe-based Minato Bank of Resona’s Kansai Mirai Financial Group which aims to lure more Japanese SMEs into the Philippines.
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