Rizal Commercial Banking Corp. (RCBC) is tapping the blockchain technology to help OFWs in Japan send remittances to the Philippines. The bank also secures a partnership with two Japanese banks for a cheaper and faster way of sending money.
Another major Philippine bank will use the power of the blockchain to disrupt and solve remittance cost and cut transaction time.
RCBC partnered with two Japanese banks, namely Kansai Urban Banking Corp. in Osaka and Minato Bank of Resona’s Kansai Mirai Financial Group in Kobe. With the partnership, the banks will use the blockchain technology to facilitate money transactions in both countries.
Mr. Manny T. Narcisco, First Senior Vice-President of RCBC, shared that by using this service, OFWs in Japan can make remittances faster and cheaper because the bank will collect lesser fees.
Since the service will use blockchain, the funds do not need to pass through the SWIFT network. This will make it cheaper and faster.
“You will not need SWIFT anymore because it’s expensive. Remittance will happen in real time, bypassing all the other parties,” – Mr. Manny T. Narcisco, First Senior Vice-President, RCBC
RCBC also stated that it chooses Japan as it is the biggest source of remittance in Asia. Bangko Sentral ng Pilipinas’ (BSP) data showed that OFW remittances from Japan amounted to $137.43 million in April.
The Yuchengco-led lender is eyeing IBM and another firm to help build its 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. Manny T. Narcisco, First Senior Vice-President, RCBC
Mr. Narcisco added that the bank plans on launching the service before the end of 2018.
Together with RCBC, Union Bank is also using the blockchain to connect rural banks to the main central system.