Union Bank fintech powers cross-border remittances

MANILA, Philippines — The financial technology venture studio and fund of Aboitiz-led Union Bank of the Philippines continues to enable Filipinos abroad to make digital cross-border remittances through its widest network of access points at more affordable rates.

UBX has partnered with Monetary Authority of Singapore-backed ThitsaWorks to enable more than half a million Filipinos in Singapore to make digital cross-border remittances.

UBX president and CEO John Januszczak said the tie up is a big step forward to enable fast, convenient, and ubiquitous cross-border remittances for the benefit of Filipino migrant workers in Singapore.

“I am confident that this partnership will also accelerate financial inclusion in the Philippines by giving clients across all regions of the archipelago – regardless of how rural or remote – access to secure and connected payments through any financial service provider, including rural banks, cooperatives, and other community based financial institutions,” Januszczak said.

The Monetary Authority of Singapore recently awarded ThitsaWorks the Financial Sector Technology and Innovation (FSTI) Proof of Concept (POC) grant for the inclusive cross-border remittances project.

The pilot program is set for the first quarter of next year. There are roughly 600,000 overseas Filipinos in Singapore remitting roughly Singapore $2.8 billion annually.

“We see this as making a material impact on the ability for all Filipinos to participate in the digital economy,” Januszczak said.

“We are happy to be a part of the Inclusive Cross-Border Remittance Project, which will make remittance cheaper and faster for the Singapore-to-Philippines corridor. I believe this project will positively affect the remittance challenges that many overseas migrant workers in Singapore undergo, which we witness daily. Our ThitsaWorks team is also very excited to work closely with prominent financial industry participants and learn from each other,” ThitsaWorks CEO and co-founder Nyi Nyein Aye said.

Under the partnership, UBX will provide the necessary digital infrastructure for international remittances between Singapore and the Philippines via its banking-as-a-service venture i2i.

While many remittance options exist for overseas migrant workers in Singapore, options to reach rural areas where many workers’ families live are complicated, expensive, and slow.

Additionally, friends and family who only have accounts with microfinance institutions (MFIs) and rural banks cannot receive direct payments.

With its strategic partnership with ThitsaWorks, i2i aims to connect small financial institutions to real-time payment networks to enable fast, convenient, and ubiquitous cross-border remittances.