THE Bangko Sentral ng Pilipinas (BSP) said that consumers will continue to enjoy lower money transfer and remittance costs due to heightened competition between banks and companies that offer money transfer and remittance services.
BSP Deputy Governor Nestor Espenilla Jr. said in an interview with reporters that companies that offer money transfer and remittances services have been forced to lower their fees in light of the strong competition from banks that offer similar services as well as providers of mobile banking services.
He pointed out that the central bank no longer needs to step in and intervene in the sector as competition has forced companies engaged in the money transfer and remittance business to lower their fees.
To date, the BSP said there are about eight million users of mobile banking in the Philippines boosting the central bank’s efforts to provide financial services in rural and hard to reach areas at a lower cost and higher efficiency.
These users of electronic money (e-money) transact through Smart Money of PLDT-controlled Smart Communications and G-cash of Ayala-controlled Globe Telecom in the Philippines.
Espenilla said the number of banks offering mobile banking for microfinance operations has reached 49 rural banks from none before 2005. (PIA-Bohol)