The Philippines’ first embedded finance initiative for overseas Filipino workers (OFWs) through the collaboration between Rizal Commercial Banking Corporation (RCBC) and Hungary-based fintech Peak and Columbus Private Equity Fund was announced during the 50th anniversary of the Philippines-Hungary diplomatic relations in Manila. The partnership would soon enable OFWs to download the Peak mobile app with RCBC embedded digital banking platform allowing them to open an RCBC peso and Hungary foreign accounts in a single app assisting them in managing their finances while working abroad and supporting their family back home.
With the partnership being fully supported by the Hungarian government through its Foreign Affairs and Trade Ministry, OFWs will have access to a wide range of digital financial services which include RCBC’s digital lending such as salary advance, home and car loan, and personal loan. Bank account holders will also have the opportunity to transfer cash to their loved ones, invest finances into rewarding financial solutions, acquire medical insurance, and access other empowering services from RCBC, Peak, and Columbus. The pilot will kickstart in Hungary and will eventually expand to European Union member countries and the United Kingdom.
“The unprecedented flow of labor is presenting the world with entirely new circumstances, unfolding a series of opportunities for agile, fast-responding companies, and cross-continental collaborations. One such opportunity is to address the financial challenges of overseas workers. The quickest collaboration in our 10 years history to be established is the cooperation between Peak, RCBC, and Columbus, well illustrating the immense market demand,” said Suppan.
Hungarian Prime Minister Viktor Orbán announced in March 2023 a pressing need for 500,000 new workers in the country over the next couple of years, a strong indication of the remarkable surge in Hungary’s labor market. One standout element has been the preference for Filipino workers owing to their exceptional English proficiency, religion, cultural adaptability, and strong work ethic. As Hungary positions itself as a regional economic powerhouse, the contributions of Filipino workers are undeniably a key catalyst. There is a significant forecast in the growth of OFWs in Hungary, which is expected to grow to over 60,000 by 2025. For this year alone, over 6,000 OFWs have been sent to Hungary. Filipino expatriates working in the manufacturing and agricultural sectors enjoy generous compensation, free board, and lodging. The growing community of Filipino workers in the EU country has become a considerable market of interest for banks such as RCBC and Peak, persuading the two financial providers and a private equity fund to collaborate and provide services through the power of API technology.
RCBC President and Chief Executive Officer Eugene S. Acevedo highlighted the importance of such partnerships in uplifting the lives of Filipinos and the enthusiasm of the bank in partaking in a fruitful partnership. “Teaming up with Peak and Columbus allows RCBC to continue serving our fellow Filipinos in Hungary. We are committed to deliver a seamless banking experience to help our customers realize their financial goals even if they are abroad,” said Acevedo.
“RCBC believes that financial inclusion should not only be for people who work in our country but it should also include hardworking expatriates who send money back home to build their dreams for their families,” said Villanueva.
“The bigger picture here is that RCBC, Peak, and Columbus are redefining financial inclusion through embedded finance as a unique value proposition, thus, creating the future of digital banking empowering migrant workers achieve their short-term and long-term goals no matter wherever they are and whenever they deem it necessary,” added Villanueva.
A 2023 report by global consultancy firm McKinsey found that US$30.5 billion in remittances flow into the country annually yet banks have not integrated remittances into their mainstream services and even into the creation of credit profiles of Filipinos. Villanueva highlighted that these findings motivated RCBC in addressing the needs of overseas workers and their families.
RCBC has been aggressively expanding its digital banking services through its RCBC Pulz, RCBC Diskartech, and RCBC ATM Go services capable of processing and accepting remittances. With the most recent partnership with Peak, RCBC is poised to become one of the leading digital-centric banks focused on making financial services accessible and possible to a greater segment of unbanked and underserved Filipinos anywhere in the world.
RCBC is the Philippines’ 5th largest privately-owned universal bank and the most awarded for its banking innovations. Among its global and local recognitions include a four-peat award as the Philippines’ Best Bank for Digital by Asiamoney, back-to-back wins for Best Financial Inclusion App by The Asian Banker’s Financial Technology Innovations Awards, Gartner Eye for Innovation Award, YouTube Challenger award for its viral and out-of-the-box digital ad campaigns, and Grand Champion for Digital Payments and Financial Inclusion by the Bankers Institute of the Philippines.
