The Overseas Filipino Bank (OFBank) has officially become the first branchless digital-only bank in the country’s history after securing a digital banking license from the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP).
A wholly-owned subsidiary of the Land Bank of the Philippines (LandBank), the OFBank was able to commence its banking operations in June last year using its then existing license to operate as a thrift bank.
The MB issued the OFBank’s digital banking license last March 25.
Finance Secretary Carlos Dominguez 3rd said “this milestone in the country’s banking history not only fulfills President Rodrigo Duterte’s campaign pledge to create a bank that caters to overseas Filipinos, but will also help the Philippines leapfrog to the digital economy.”
“When President Duterte said he would create a bank that would serve overseas-based Filipinos, he wanted a bank that would be trailblazer in terms of modernizing and expanding the scope of the services it offers to them,” Dominguez said.
“I commend the OFBank and the LandBank under its President-CEO Cecilia Borromeo for their tireless efforts that have led to the bank’s transformation into the Philippines first branchless and digital-only banking institution,” he added.
The OFBank was created under Executive Order (EO) No. 44 that was signed by Duterte in September 2017.
To fulfill the EO’s provision on the “need to establish a policy bank dedicated to provide financial products and services tailored to the requirements of overseas Filipinos (OFs), the Philippine Postal Savings Bank (PPSB) was acquired by LandBank and converted into the OFBank.
On June 29 last year, the OFBank was launched virtually amid the Covid-19 pandemic as the Philippines’ first branchless and digital-centric government bank. SOVEREIGNPH