Smart, rural banks ink deal on remittances

Smart, rural banks ink deal on remittances
By Ted P. Torres
The Philippine Star 10/21/2005

Mobile phone leader Smart Communications Inc. has worked out a deal with the country’s rural banks for tie-ups in remittance and other electronic services.

Smart signed an agreement with service provider RuralNet, which earlier entered into a similar pact with the Rural Bankers Association of the Philippines (RBAP), to allow families of overseas Filipino workers (OFWs) to easily access remittances through rural banks.

Smart’s international and domestic roaming services as well as its e-commerce – SmartMoney and SmartPadala services – will be linked to the network of RuralNet as its dealer or reseller for cellphone loads.

Also through RuralNet, rural banks can offer loads and encashments for rural bank clients, particularly OFW families.

Smart vice president Ramon Isberto said the arrangement would allow the RBAP to offer remittance services through Smart Padala or its other electronic services.

"Through RuralNet as our electronic partner and RBAP members as the base of rural transactions, we can provide the convenience for the OFWs in both communications and remittance collections," Isberto said during RBAP’s 48th charter anniversary symposium yesterday.

Among these services is Smart Padala, an electronic platform for Smart Money, oftentimes called the electronic ATM and debit card.

Isberto said that they have more services not only for the remittance business but for other financial and non-financial services. "We are just waiting for RuralNet to roll out its network to the rural banks."

The Smart official assured that this electronic arrangement transaction is in compliance with the anti-money laundering regulations of the Bangko Sentral ng Pilipinas since it takes place over the banking system through Banco de Oro that handles the settlements.

Meanwhile, RuralNet chief executive officer Daniel Arcenas revealed that it targets to service exclusively all rural banks within the next two years. Rural bank clients could make payments and repayments or deal with government or private sector institutions through the network.

"We will be signing an agreement with the Philippine Overseas Employment Agency (POEA) and PhilHealth for the convenience of the bank clients of rural banks," Arcenas said.